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<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 0pt"><b></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 1 - NATURE OF OPERATIONS</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Kennametal Inc. delivers productivity to customers seeking peak performance in demanding environments by providing innovative custom and standard wear-resistant solutions, enabled through our advanced materials sciences, application knowledge and commitment to a sustainable environment. We believe that our reputation for manufacturing excellence, as well as our technological expertise and innovation in our principal products, has helped us to achieve a leading market presence in our primary markets. End users of our products include metalworking manufacturers and suppliers across a diverse array of industries, including the aerospace, defense, transportation, machine tool, light machinery and heavy machinery industries, as well as manufacturers, producers and suppliers in a number of other industries including coal mining, highway construction, quarrying, and oil and gas exploration and production industries. Our end users’ products include items ranging from airframes to coal mining, engines to oil wells and turbochargers to construction. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Unless otherwise specified, any reference to a “year” is to a fiscal year ended June 30. When used in this annual report on Form 10-K, unless the context requires otherwise, the terms “we,” “our” and “us” refer to Kennametal Inc. and its subsidiaries. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The summary of our significant accounting policies is presented below to assist in evaluating our consolidated financial statements. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>PRINCIPLES OF CONSOLIDATION </b>The consolidated financial statements include our accounts and those of our majority-owned subsidiaries. All significant intercompany balances and transactions are eliminated. Investments in entities of less than 50 percent of the voting stock over which we have significant influence are accounted for on an equity basis. The factors used to determine significant influence include, but are not limited to, our management involvement in the investee, such as hiring and setting compensation for management of the investee, the ability to make operating and capital decisions of the investee, representation on the investee’s board of directors and purchase and supply agreements with the investee. Investments in entities of less than 50 percent of the voting stock in which we do not have significant influence are accounted for on the cost basis. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS </b>In preparing our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, we make judgments and estimates about the amounts reflected in our financial statements. As part of our financial reporting process, our management collaborates to determine the necessary information on which to base our judgments and develop estimates used to prepare the financial statements. We use historical experience and available information to make these judgments and estimates. However, different amounts could be reported using different assumptions and in light of different facts and circumstances. Therefore, actual amounts could differ from the estimates reflected in our financial statements. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>CASH AND CASH EQUIVALENTS </b>Cash investments having original maturities of three months or less are considered cash equivalents. Cash equivalents principally consist of investments in money market funds and bank deposits at June 30, 2011. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>ACCOUNTS RECEIVABLE </b>We market our products to a diverse customer base throughout the world. Trade credit is extended based upon periodically updated evaluations of each customer’s ability to satisfy its obligations. We make judgments as to our ability to collect outstanding receivables and provide allowances for the portion of receivables when collection becomes doubtful. Accounts receivable reserves are determined based upon an aging of accounts and a review of specific accounts. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>INVENTORIES </b>Inventories are stated at the lower of cost or market. We use the last-in, first-out (LIFO) method for determining the cost of a significant portion of our United States (U.S.) inventories. The cost of the remainder of our inventories is determined under the first-in, first-out or average cost methods. When market conditions indicate an excess of carrying costs over market value, a lower-of-cost-or-market provision is recorded. Excess and obsolete inventory reserves are established based upon our evaluation of the quantity of inventory on hand relative to demand. The excess and obsolete inventory reserve at June 30, 2011 and 2010 was $55.3 million and $68.3 million, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>PROPERTY, PLANT AND EQUIPMENT </b>Property, plant and equipment are carried at cost. Major improvements are capitalized, while maintenance and repairs are expensed as incurred. Retirements and disposals are removed from cost and accumulated depreciation accounts, with the gain or loss reflected in operating income. Interest related to the construction of major facilities is capitalized as part of the construction costs and is amortized over the facilities estimated useful life. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt">Depreciation for financial reporting purposes is computed using the straight-line method over the following estimated useful lives: building and improvements over 15-40 years; machinery and equipment over 4-15 years; furniture and fixtures over 5-10 years and computer hardware and software over 3-5 years. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Leased property and equipment under capital leases are amortized using the straight-line method over the terms of the related leases. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>LONG-LIVED ASSETS </b>We evaluate the recoverability of property, plant and equipment and intangible assets that are amortized, whenever events or changes in circumstances indicate the carrying amount of any such assets may not be fully recoverable. Changes in circumstances include technological advances, changes in our business model, capital structure, economic conditions or operating performance. Our evaluation is based upon, among other things, our assumptions about the estimated future undiscounted cash flows these assets are expected to generate. When the sum of the undiscounted cash flows is less than the carrying value of the asset or asset group, we will recognize an impairment loss to the extent that carrying value exceeds fair value. We apply our best judgment when performing these evaluations to determine if a triggering event has occurred, the undiscounted cash flows used to assess recoverability and the fair value of the asset. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>GOODWILL AND OTHER INTANGIBLE ASSETS </b>Goodwill represents the excess of cost over the fair value of the net assets of acquired companies. Goodwill and intangible assets with indefinite lives are tested at least annually for impairment. We perform our annual impairment tests during the June quarter in connection with our annual planning process unless there are impairment indicators that warrant a test prior to that. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The carrying amount of goodwill attributable to each segment at June 30 is as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="64%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Industrial</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Infrastructure</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Total</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Goodwill </div></td> <td> </td> <td align="left">$</td> <td align="right">406,626</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">247,199</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">653,825</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Accumulated impairment losses </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(150,842</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(150,842</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Balance as of June 30, 2009 </div></td> <td> </td> <td align="left">$</td> <td align="right">255,784</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">247,199</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">502,983</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Acquisitions / Divestitures </div></td> <td> </td> <td> </td> <td align="right">536</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">536</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Translation </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(13,188</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(888</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(14,076</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Change in goodwill </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(12,652</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(888</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(13,540</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Goodwill </div></td> <td> </td> <td align="left">$</td> <td align="right">393,974</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">246,311</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">640,285</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Accumulated impairment losses </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(150,842</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(150,842</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Balance as of June 30, 2010 </div></td> <td> </td> <td align="left">$</td> <td align="right">243,132</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">246,311</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">489,443</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Adjustments </div></td> <td> </td> <td align="left">$</td> <td align="right">252</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">252</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Translation </div></td> <td> </td> <td> </td> <td align="right">17,719</td> <td> </td> <td> </td> <td> </td> <td align="right">3,914</td> <td> </td> <td> </td> <td> </td> <td align="right">21,633</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Change in goodwill </div></td> <td> </td> <td> </td> <td align="right">17,971</td> <td> </td> <td> </td> <td> </td> <td align="right">3,914</td> <td> </td> <td> </td> <td> </td> <td align="right">21,885</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Goodwill </div></td> <td> </td> <td> </td> <td align="right">411,945</td> <td> </td> <td> </td> <td> </td> <td align="right">250,225</td> <td> </td> <td> </td> <td> </td> <td align="right">662,170</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Accumulated impairment losses </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(150,842</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(150,842</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Balance as of June 30, 2011 </div></td> <td> </td> <td align="left">$</td> <td align="right">261,103</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">250,225</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">511,328</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 3pt">We recorded no goodwill or intangible asset impairments in 2011 and 2010. We also recorded goodwill impairment charges of $37.3 million related to our surface finishing machines and services business and $62.9 million related to our engineered products business in 2009. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">During 2010, we acquired the remaining noncontrolling interest of a consolidated entity which resulted in additional Industrial goodwill of $0.7 million. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt">The components of our intangible assets were as follows as of June 30: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="40%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Estimated</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">2011</td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">2010</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Useful Life</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Gross Carrying</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Accumulated</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Gross Carrying</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Accumulated</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">(in years)</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Amount</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Amortization</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Amount</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Amortization</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Contract-based </div></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">4 to 15</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">6,349</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(5,380</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">6,357</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(5,218</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Technology-based and other </div></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">4 to 15</td> <td> </td> <td> </td> <td> </td> <td align="right">39,743</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(25,442</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">37,136</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(20,422</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Customer-related </div></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">10 to 20</td> <td> </td> <td> </td> <td> </td> <td align="right">113,977</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(38,275</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">108,470</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(29,255</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unpatented technology </div></td> <td> </td> <td> </td> <td align="right">30</td> <td> </td> <td> </td> <td> </td> <td align="right">19,540</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(4,740</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">19,216</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(4,572</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Trademarks </div></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">5 to 20</td> <td> </td> <td> </td> <td> </td> <td align="right">10,902</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(4,875</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">10,647</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,876</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Trademarks </div></td> <td> </td> <td colspan="3" nowrap="nowrap" align="center">Indefinite</td> <td> </td> <td> </td> <td align="right">40,480</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">36,823</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">230,991</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(78,712</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">218,649</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(63,343</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">During 2011, we recorded foreign currency translation adjustments which increased intangible assets by $8.5 million. During 2010, we recorded foreign currency translation adjustments which decreased intangible assets by $6.0 million. We also recorded a $10.8 million impairment charge in 2009 for the indefinite-lived trademark for our surface finishing machines and services business. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Amortization expense for intangible assets was $11.6 million, $13.1 million and $13.1 million for 2011, 2010 and 2009, respectively. Estimated amortization expense for 2012 through 2016 is $10.8 million, $10.1 million, $9.8 million, $9.5 million, and $9.1 million, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>PENSION AND OTHER POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS </b>We sponsor these types of benefit plans for certain employees and retirees. Accounting for the cost of these plans requires the estimation of the cost of the benefits to be provided well into the future and attributing that cost over the expected work life of employees participating in these plans. This estimation requires our judgment about the discount rate used to determine these obligations, expected return on plan assets, rate of future compensation increases, rate of future health care costs, withdrawal and mortality rates and participant retirement age. Differences between our estimates and actual results may significantly affect the cost of our obligations under these plans. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">In the valuation of our pension and other postretirement and postemployment benefit liabilities, management utilizes various assumptions. We determine our discount rate based on investment grade bond yield curves with a duration that approximates the benefit payment timing of each plan. This rate can fluctuate based on changes in investment grade bond yields. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The long-term rate of return on plan assets is estimated based on an evaluation of historical returns for each asset category held by the plans, coupled with the current and short-term mix of the investment portfolio. The historical returns are adjusted for expected future market and economic changes. This return will fluctuate based on actual market returns and other economic factors. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The rate of future health care costs is based on historical claims and enrollment information projected over the next year and adjusted for administrative charges. This rate is expected to decrease until 2029. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Future compensation rates, withdrawal rates and participant retirement age are determined based on historical information. These assumptions are not expected to significantly change. Mortality rates are determined based on a review of published mortality tables. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>EARNINGS PER SHARE </b>Basic earnings per share is computed using the weighted average number of shares outstanding during the period, while diluted earnings per share is calculated to reflect the potential dilution that occurs related to the issuance of capital stock under stock option grants, restricted stock awards and restricted stock units. The difference between basic and diluted earnings per share relates solely to the effect of capital stock options, restricted stock awards and restricted stock units. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">For purposes of determining the number of diluted shares outstanding at June 30, 2011 and 2010, weighted average shares outstanding for basic earnings per share calculations were increased due solely to the dilutive effect of unexercised capital stock options, unvested restricted stock awards and unvested restricted stock units by 1.1 million and 0.7 million shares, respectively. For June 30, 2009, the effect of unexercised capital stock options, unvested restricted stock awards and unvested restricted stock units was anti-dilutive and therefore has been excluded from diluted shares outstanding as well as from the diluted earnings per share calculation. Unexercised capital stock options, restricted stock units and restricted stock awards of 0.4 million, 2.3 million and 2.6 million shares at June 30, 2011, 2010, and 2009, respectively, were not included in the computation of diluted earnings per share because the option exercise price was greater than the average market price, and therefore the inclusion would have been anti-dilutive. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>REVENUE RECOGNITION </b>We recognize revenue upon shipment of our products and assembled machines. Our general conditions of sale explicitly state that the delivery of our products and assembled machines is F.O.B. shipping point and that title and all risks of loss and damage pass to the buyer upon delivery of the sold products or assembled machines to the common carrier. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Our general conditions of sale explicitly state that acceptance of the conditions of shipment are considered to have occurred unless written notice of objection is received by Kennametal within 10 calendar days of the date specified on the invoice. We do not ship products or assembled machines unless we have documentation from our customers authorizing shipment. Our products are consumed by our customers in the manufacture of their products. Historically, we have experienced very low levels of returned products and assembled machines and do not consider the effect of returned products and assembled machines to be material. We have recorded an estimated returned goods allowance to provide for any potential returns. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">We warrant that products and services sold are free from defects in material and workmanship under normal use and service when correctly installed, used and maintained. This warranty terminates 30 days after delivery of the product to the customer and does not apply to products that have been subjected to misuse, abuse, neglect or improper storage, handling or maintenance. Products may be returned to Kennametal, only after inspection and approval by Kennametal and upon receipt by the customer of shipping instructions from Kennametal. We have included an estimated allowance for warranty returns in our returned goods allowance. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">We recognize revenue related to the sale of specialized assembled machines upon customer acceptance and installation, as installation is deemed essential to the functionality of a specialized assembled machine. Sales of specialized assembled machines were immaterial for 2011, 2010 and 2009. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>STOCK-BASED COMPENSATION </b>We recognize stock-based compensation expense for all stock options, restricted stock awards and restricted stock units over the period from the date of grant to the date when the award is no longer contingent on the employee providing additional service (substantive vesting period). We utilize the Black-Scholes valuation method to establish the fair value of all stock option awards. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Capital stock options are granted to eligible employees at fair market value at the date of grant. Capital stock options are exercisable under specified conditions for up to 10 years from the date of grant. On October 26, 2010, the Company’s shareowners approved the Kennametal Inc., Stock and Incentive Plan of 2010 (2010 Plan). The 2010 Plan authorizes the issuance of up to 3,500,000 shares of the Company’s capital stock plus any shares remaining unissued under the Kennametal Inc. Stock and Incentive Plan of 2002, as amended (2002 Plan). Under the provisions of these Plans, participants may deliver our stock, owned by the holder for at least six months, in payment of the option price and receive credit for the fair market value of the shares on the date of delivery. The fair value of shares delivered during 2011, 2010 and 2009 was $0.8 million, $0.1 million, and $0.7 million, respectively. In addition to stock option grants, these Plans permit the award of stock appreciation rights, performance shares, performance units, restricted stock and restricted stock units to directors, officers and key employees. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>RESEARCH AND DEVELOPMENT COSTS </b>Research and development costs of $33.3 million, $28.0 million and $27.6 million in 2011, 2010 and 2009, respectively, were expensed as incurred. These costs are included in operating expense in the consolidated statements of income. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>SHIPPING AND HANDLING FEES AND COSTS </b>All fees billed to customers for shipping and handling are classified as a component of sales. All costs associated with shipping and handling are classified as a component of cost of goods sold. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>INCOME TAXES </b>Deferred income taxes are recognized based on the future income tax effects (using enacted tax laws and rates) of differences in the carrying amounts of assets and liabilities for financial reporting and tax purposes. A valuation allowance is recognized if it is “more likely than not” that some or all of a deferred tax asset will not be realized. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES </b>As part of our financial risk management program, we use certain derivative financial instruments. We do not enter into derivative transactions for speculative purposes and, therefore, hold no derivative instruments for trading purposes. We use derivative financial instruments to provide predictability to the effects of changes in foreign exchange rates on our consolidated results, achieve our targeted mix of fixed and floating interest rates on outstanding debt and forecasted transactions. Our objective in managing foreign exchange exposures with derivative instruments is to reduce volatility in cash flow, allowing us to focus more of our attention on business operations. With respect to interest rate management, these derivative instruments allow us to achieve our targeted fixed-to-floating interest rate mix, as a separate decision from funding arrangements, in the bank and public debt markets. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">We account for derivative instruments as a hedge of the related asset, liability, firm commitment or anticipated transaction, when the derivative is specifically designated as a hedge of such items. We measure hedge effectiveness by assessing the changes in the fair value or expected future cash flows of the hedged item. The ineffective portions are recorded in other expense (income), net. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt">Certain currency forward contracts hedging significant cross-border intercompany loans are considered other derivatives and, therefore, do not qualify for hedge accounting. These contracts are recorded at fair value in the balance sheet, with the offset to other expense (income), net. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>CASH FLOW HEDGES </b><i>Currency </i>Forward contracts and range forward contracts (a transaction where both a put option is purchased and a call option is sold) are designated as cash flow hedges and hedge anticipated cash flows from cross-border intercompany sales of products and services. Gains and losses realized on these contracts at maturity are recorded in accumulated other comprehensive income (loss), net of tax, and are recognized as a component of other expense (income), net when the underlying sale of products or services is recognized into earnings. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Interest Rate </i>Floating-to-fixed interest rate swap contracts, designated as cash flow hedges, are entered into from time to time to hedge our exposure to interest rate changes on a portion of our floating rate debt. These interest rate swap contracts convert a portion of our floating rate debt to fixed rate debt. We record the fair value of these contracts as an asset or a liability, as applicable, in the balance sheet, with the offset to accumulated other comprehensive income (loss), net of tax. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>FAIR VALUE HEDGES </b><i>Interest Rate </i>Fixed-to-floating interest rate swap contracts, designated as fair value hedges, are entered into from time to time to hedge our exposure to fair value fluctuations on a portion of our fixed rate debt. These interest rate swap contracts convert a portion of our fixed rate debt to floating rate debt. When in place, these contracts require periodic settlement, and the difference between amounts to be received and paid under the contracts is recognized in interest expense. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>FOREIGN CURRENCY TRANSLATION </b>Assets and liabilities of international operations are translated into U.S. dollars using year-end exchange rates, while revenues and expenses are translated at average exchange rates throughout the year. The resulting net translation adjustments are recorded as a component of accumulated other comprehensive income (loss). The local currency is the functional currency of most of our locations. Losses from foreign currency transactions included in other expense (income), net were $6.6 million for 2011. Gains from foreign currency transactions included in other expense (income), net were $3.5 million and $6.8 million for 2010 and 2009, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>NEW ACCOUNTING STANDARDS</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Adopted</i> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">As of January 1, 2011, Kennametal adopted changes to intangible impairment testing for reporting units with zero or negative carrying amounts. These changes require an entity to perform all steps in the test for a reporting unit whose carrying value is zero or negative if it is more likely than not that an intangible impairment exists based on qualitative factors, resulting in the elimination of an entity’s ability to assert that such a reporting unit’s intangible assets are not impaired and additional testing is not necessary despite the existence of qualitative factors that indicate otherwise. The adoption of this guidance did not have an impact on our consolidated financial statements. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">As of January 1, 2011, Kennametal adopted changes to the disclosures related to business combinations for a public entity that presents comparative financial statements. This guidance also expanded the supplemental pro forma business combination disclosures. The adoption of this guidance did not have an impact on our consolidated financial statements. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">As of July 1, 2010, Kennametal adopted new guidance on consolidations for enterprises involved with variable interest entities. The guidance modifies how a company determines when an entity that is insufficiently capitalized or is not controlled through voting (or similar) rights should be consolidated and clarifies that the determination of whether a company is required to consolidate a variable interest entity is based on, among other things, an entity’s purpose and design and a company’s ability to direct the activities of the entity that most significantly impact the entity’s economic performance. This guidance requires an ongoing reassessment of whether a company is the primary beneficiary of a variable interest entity and also requires additional disclosures about a company’s involvement in variable interest entities and any significant changes in risk exposure due to that involvement. The adoption of this guidance did not have an impact on our consolidated financial statements. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt">As of July 1, 2010, Kennametal adopted new guidance on accounting for transfers of financial assets. This guidance requires additional disclosure regarding transfers of financial assets, including securitization transactions, and where companies have continuing exposure to the risks related to transferred financial assets. The adoption of this guidance did not have an impact on our consolidated financial statements. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">As of July 1, 2010, Kennametal adopted new guidance on revenue recognition for multiple-deliverable revenue arrangements. The guidance allows companies to allocate arrangement consideration in multiple deliverable arrangements in a manner that better reflects the transaction’s economics and may result in earlier revenue recognition. In addition, the residual method of allocating arrangement consideration is no longer permitted. The adoption of this guidance did not have a material impact on our consolidated financial statements. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Issued</i> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">In June 2011, the Financial Accounting Standards Board (FASB) issued new guidance on presentation of comprehensive income. This new guidance eliminates the current option to report other comprehensive income and its components in the statement of changes in equity. An entity can elect to present items of net income and other comprehensive income in one continuous statement (referred to as the statement of comprehensive income) or in two separate consecutive statements. Each component of net income and other comprehensive income, together with totals for comprehensive income and its two parts — net income and other comprehensive income, would need to be displayed under either alternative. The statement(s) would need to be presented with equal prominence as the other primary financial statements. This guidance is effective for Kennametal beginning July 1, 2012. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">In May 2011, the FASB issued new guidance on fair value measurements and disclosure. The objective of the new guidance is a consistent definition of fair value and common requirements for measurement of and disclosure about fair value between U.S. GAAP and IFRS. Many of the amendments in this new guidance represent clarifications to existing guidance or changes in the measurement guidance for determining fair value. The most significant change in disclosures is an expansion of the information required for Level 3 measurements. New disclosures are required about the use of a nonfinancial asset measured or disclosed at fair value if its use differs from its highest and best use. In addition, entities must report the level in the fair value hierarchy of assets and liabilities not recorded at fair value but where fair value is disclosed. This guidance is effective for Kennametal beginning January 1, 2012. We are in the process of evaluating the impact of adoption on our consolidated financial statements. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 3 – SUPPLEMENTAL CASH FLOW INFORMATION</b> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="64%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">Year ended June 30 (in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Cash paid during the period for: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Interest </div></td> <td> </td> <td align="left">$</td> <td align="right">26,624</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">28,626</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">26,328</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Income taxes </div></td> <td> </td> <td> </td> <td align="right">95,382</td> <td> </td> <td> </td> <td> </td> <td align="right">3,788</td> <td> </td> <td> </td> <td> </td> <td align="right">18,020</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Supplemental disclosure of non-cash information: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Contribution of capital stock to employees’ defined contribution benefit plans </div></td> <td> </td> <td> </td> <td align="right">948</td> <td> </td> <td> </td> <td> </td> <td align="right">6,352</td> <td> </td> <td> </td> <td> </td> <td align="right">1,738</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Change in fair value of derivative contracts </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">730</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Changes in accounts payable related to purchases of property, plant and equipment </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(12,800</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 4 – ACQUISITIONS AND DIVESTITURES</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">During 2009, we acquired Tricon for a net purchase price of $64.1 million. As part of our Infrastructure segment, we acquired Tricon to expand our products and solutions in the surface and underground mining markets, including hard rock and coal. During 2009, we also made an acquisition within our Industrial segment. Also during 2009, we made final payments for two Industrial acquisitions that we made in Europe during 2008. During 2009, we had one divestiture that was accounted for as discontinued operations, see Note 5. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 5 – DISCONTINUED OPERATIONS</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Effective June 30, 2009, we divested HSS from our Industrial segment as part of our continuing focus to shape our business portfolio and rationalize our manufacturing footprint. This divestiture was accounted for as discontinued operations. The net assets disposed of as a result of this transaction had a net book value of approximately $51 million and consisted primarily of inventory and equipment, as well as owned and leased facilities. Cash proceeds from this divestiture amounted to $28.5 million, the majority of which was received in 2010. We incurred pre-tax charges related to the divestiture of $2.3 million and $25.9 million during 2010 and 2009, respectively. The pre-tax charges as well as the related tax effects were recorded in discontinued operations. We do not expect to incur any additional pre-tax charges related to this divestiture. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The following represents the results of discontinued operations for the years ended June 30: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Sales </div></td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">80,630</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Loss from discontinued operations before income taxes </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(2,269</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(25,923</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Income tax expense (benefit) </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(846</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(8,583</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Loss from discontinued operations </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,423</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(17,340</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 6 – FAIR VALUE MEASUREMENTS</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy consists of three levels to prioritize the inputs used in valuations, as defined below: </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Level 3: Inputs that are unobservable. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">As of June 30, 2011 the fair values of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Level 1</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Level 2</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Level 3</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Total</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Assets: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Derivatives<sup style="font-size: 85%; vertical-align: text-top"> (1)</sup> </div></td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">896</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">896</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Total assets at fair value </div></td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">896</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">896</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Liabilities: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Derivatives<sup style="font-size: 85%; vertical-align: text-top"> (1)</sup> </div></td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">3,330</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">3,330</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total liabilities at fair value </div></td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">3,330</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">3,330</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt">As of June 30, 2010 the fair values of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Level 1</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Level 2</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Level 3</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Total</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Assets: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Derivatives<sup style="font-size: 85%; vertical-align: text-top"> (1)</sup> </div></td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">43</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">43</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Total assets at fair value </div></td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">43</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">43</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Liabilities: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Derivatives<sup style="font-size: 85%; vertical-align: text-top"> (1)</sup> </div></td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">3,453</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">3,453</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total liabilities at fair value </div></td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">3,453</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">3,453</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><sup style="font-size: 85%; vertical-align: text-top">(1) </sup> Foreign currency derivative and interest rate swap contracts are valued based on observable market spot and forward rates and are classified within Level 2 of the fair value hierarchy. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 7 — DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">As part of our financial risk management program, we use certain derivative financial instruments. See Note 2 for discussion on our derivative instruments and hedging activities policy. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The fair value of derivatives designated and not designated as hedging instruments in the consolidated balance sheets at June 30 is as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Derivatives designated as hedging instruments </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Other current assets — range forward contracts </div></td> <td> </td> <td align="left">$</td> <td align="right">87</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">34</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Other current liabilities — range forward contracts </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(159</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Other assets — forward starting interest rate swap contracts </div></td> <td> </td> <td> </td> <td align="right">772</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Other liabilities — forward starting interest rate swap contracts </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,169</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,348</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total derivatives designated as hedging instruments </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,469</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,316</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Derivatives not designated as hedging instruments </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Other current assets — currency forward contracts </div></td> <td> </td> <td> </td> <td align="right">37</td> <td> </td> <td> </td> <td> </td> <td align="right">9</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Other current liabilities — currency forward contracts </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,103</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total derivatives not designated as hedging instruments </div></td> <td> </td> <td> </td> <td align="right">35</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,094</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total derivatives </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(2,434</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(3,410</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Certain currency forward contracts hedging significant cross-border intercompany loans are considered as other derivatives and therefore, do not qualify for hedge accounting. These contracts are recorded at fair value in the balance sheet, with the offset to other expense (income), net. The following represents (gains) losses related to derivatives not designated as hedging instruments for the years ended June 30: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="64%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000">  | | |</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Other expense (income), net — currency forward contracts </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,126</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">1,077</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">73</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">FAIR VALUE HEDGES </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Fixed-to-floating interest rate swap contracts, designated as fair value hedges, are entered into from time to time to hedge our exposure to fair value fluctuations on a portion of our fixed rate debt. We had no such contracts outstanding at June 30, 2011 and 2010, respectively. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt">In February 2009, we terminated interest rate swap contracts to convert $200 million of our fixed rate debt to floating rate debt. These contracts were originally set to mature in June 2012. Upon termination, we received a cash payment of $13.2 million. Within the consolidated statement of cash flow for the year ended June 30, 2009, $12.6 million related to the forward portion of the payment and has been disclosed under cash flow used for financing activities and the $0.6 million related to the current interest portion has been disclosed under cash flow provided by operating activities. This gain is being amortized as a component of interest expense over the remaining term of the related debt using the effective interest rate method. During the years ended June 30, 2011, 2010 and 2009 $5.9 million, $5.6 million and $3.2 million, respectively were recognized as a reduction in interest expense. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">CASH FLOW HEDGES </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Currency forward contracts and range forward contracts (a transaction where both a put option is purchased and a call option is sold) are designated as cash flow hedges and hedge anticipated cash flows from cross-border intercompany sales of products and services. Gains and losses realized on these contracts at maturity are recorded in accumulated other comprehensive (loss) income, net of tax, and are recognized as a component of other expense (income), net when the underlying sale of products or services is recognized into earnings. The notional amount of the contracts translated into U.S. dollars at June 30, 2011 and 2010 was $37.6 million and $9.4 million, respectively. The time value component of the fair value of range forwards is excluded from the assessment of hedge effectiveness. Assuming the market rates remain constant with the rates at June 30, 2011, we expect to recognize into earnings in the next 12 months immaterial losses on outstanding derivatives. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Floating-to-fixed interest rate swap contracts, designated as cash flow hedges, are entered into from time to time to hedge our exposure to interest rate changes on a portion of our floating rate debt. These interest rate swap contracts convert a portion of our floating rate debt to fixed rate debt. We record the fair value of these contracts as an asset or a liability, as applicable, in the balance sheet, with the offset to accumulated other comprehensive income (loss), net of tax. We had forward starting interest rate swap contracts outstanding for forecasted transactions that effectively converted a cumulative notional amount of $150 million and $75 million at June 30, 2011 and 2010, respectively from floating to fixed interest rates. As of June 30, 2011 and 2010 we recorded a liability of $2.4 million and $2.3 million, respectively on these contracts which was recorded as an offset in other comprehensive income (loss), net of tax. Over the next 12 months, assuming the market rates remain constant with the rates at June 30, 2011, we do not expect to recognize into earnings any significant gains or losses on outstanding derivatives. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The following represents gains (losses) related to cash flow hedges for the years ended June 30: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="64%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">(Losses) gains recognized in other comprehensive income (loss) </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(26</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(962</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">107</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Losses (gains) reclassified from accumulated other comprehensive loss into other expense (income), net </div></td> <td> </td> <td align="left">$</td> <td align="right">1,041</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,107</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(8,505</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">No portion of the gains or losses recognized in earnings was due to ineffectiveness and no amounts were excluded from our effectiveness testing for the years ended June 30, 2011, 2010 and 2009. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 8 – INVENTORIES</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Inventories consisted of the following at June 30: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Finished goods </div></td> <td> </td> <td align="left">$</td> <td align="right">303,716</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">227,096</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Work in process and powder blends </div></td> <td> </td> <td colspan="3" align="center"> 202,940</td> <td> </td> <td> </td> <td align="right">134,732</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Raw materials and supplies </div></td> <td> </td> <td> </td> <td align="right">109,683</td> <td> </td> <td> </td> <td> </td> <td align="right">62,673</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Inventories at current cost </div></td> <td> </td> <td> </td> <td align="right">616,339</td> <td> </td> <td> </td> <td> </td> <td align="right">424,501</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Less: LIFO valuation </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(96,366</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(60,233</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total inventories </div></td> <td> </td> <td align="left">$</td> <td align="right">519,973</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">364,268</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">We used the LIFO method of valuing our inventories for approximately 50 percent and 51 percent of total inventories at June 30, 2011 and 2010, respectively. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 9 – OTHER CURRENT LIABILITIES</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Other current liabilities consisted of the following at June 30: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Accrued employee benefits </div></td> <td> </td> <td align="left">$</td> <td align="right">55,833</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">44,474</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Payroll, state and local taxes </div></td> <td> </td> <td> </td> <td align="right">15,997</td> <td> </td> <td> </td> <td> </td> <td align="right">9,107</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Accrued restructuring expense (Note 15) </div></td> <td> </td> <td> </td> <td align="right">12,711</td> <td> </td> <td> </td> <td> </td> <td align="right">27,254</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">82,665</td> <td> </td> <td> </td> <td> </td> <td align="right">71,971</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total other current liabilities </div></td> <td> </td> <td align="left">$</td> <td align="right">167,206</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">152,806</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 10 – LONG-TERM DEBT AND CAPITAL LEASES</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Long-term debt and capital lease obligations consisted of the following at June 30: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">7.2% Senior Unsecured Notes due 2012 net of discount of $0.1 million and $0.2 million for 2011 and 2010, respectively. Also including interest rate swap adjustments of $6.1 million and $12.1 million in 2011 and 2010, respectively </div></td> <td> </td> <td align="left">$</td> <td align="right">305,954</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">311,849</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Capital leases with terms expiring through 2015 at 2.3% to 2.8% in 2011 and 2.0% to 4.7% in 2010 </div></td> <td> </td> <td> </td> <td align="right">3,113</td> <td> </td> <td> </td> <td> </td> <td align="right">6,020</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">156</td> <td> </td> <td> </td> <td> </td> <td align="right">345</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total debt and capital leases </div></td> <td> </td> <td> </td> <td align="right">309,223</td> <td> </td> <td> </td> <td> </td> <td align="right">318,214</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Less current maturities: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Long-term debt </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(306,032</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(133</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Capital leases </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,272</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,406</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total current maturities </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(307,304</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,539</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Long-term debt and capital leases, less current maturities </div></td> <td> </td> <td align="left">$</td> <td align="right">1,919</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">314,675</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Senior Unsecured Notes </i>On June 19, 2002, we issued $300 million of 7.2 percent Senior Unsecured Notes due 2012 (Senior Unsecured Notes). Interest is payable semi-annually on June 15 and December 15 of each year. The Senior Unsecured Notes contain covenants that restrict our ability to create liens, enter into sale-leaseback transactions or certain consolidations or mergers, or sell all or substantially all of our assets. These notes have been reclassified to current maturities of long-term debt as of June 30, 2011. The repayment of this debt is expected to be financed in due course through a new corporate bond issuance. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>2010 Credit Agreement </i>On June 25, 2010 we entered into a five-year, multi-currency, revolving credit facility (2010 Credit Agreement) that extends to June 2015. This agreement replaces the prior credit facility that was scheduled to mature in March 2011. The 2010 Credit Agreement permits revolving credit loans of up to $500 million for working capital, capital expenditures and general corporate purposes. The 2010 Credit Agreement allows for borrowings in U.S. dollars, euro, Canadian dollars, pound sterling and Japanese yen. Interest payable under the 2010 Credit Agreement is based upon the type of borrowing under the facility and may be (1) LIBOR plus an applicable margin, (2) the greater of the prime rate or the Federal Funds effective rate plus an applicable margin, or (3) fixed as negotiated by us. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The 2010 Credit Agreement requires us to comply with various restrictive and affirmative covenants, including two financial covenants: a maximum leverage ratio and a minimum consolidated interest coverage ratio (as those terms are defined in the agreement). We were in compliance with these financial covenants as of June 30, 2011. We had no borrowings outstanding under the 2010 Credit Agreement as of June 30, 2011 or 2010. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Borrowings under the 2010 Credit Agreement are guaranteed by our significant domestic subsidiaries. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Future principal maturities of long-term debt are $306.0 million and $0.1 million, respectively, in 2012 and 2013. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt">Future minimum lease payments under capital leases for the next five years and thereafter in total are as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="85%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td align="left">(in thousands)</td> <td> </td> <td> </td> <td> </td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">2012 </div></td> <td> </td> <td align="left">$</td> <td align="right">1,392</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">2013 </div></td> <td> </td> <td> </td> <td align="right">1,111</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">2014 </div></td> <td> </td> <td> </td> <td align="right">274</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">2015 </div></td> <td> </td> <td> </td> <td align="right">728</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">2016 </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">After 2016 </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total future minimum lease payments </div></td> <td> </td> <td> </td> <td align="right">3,505</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Less amount representing interest </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(392</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Amount recognized as capital lease obligations </div></td> <td> </td> <td align="left">$</td> <td align="right">3,113</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Our collateralized debt at June 30, 2011 and 2010 was comprised of industrial revenue bond obligations of $0.2 million and $0.3 million, respectively, and the capitalized lease obligations of $3.1 million and $6.0 million, respectively. The underlying assets collateralize these obligations. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 11 - NOTES PAYABLE AND LINES OF CREDIT</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Notes payable to banks of $3.7 million and $19.5 million at June 30, 2011 and 2010, respectively, represents short-term borrowings under credit lines with commercial banks. These credit lines, translated into U.S. dollars at June 30, 2011 exchange rates, totaled $200.6 million at June 30, 2011, of which $196.9 million was unused. The weighted average interest rate for notes payable and lines of credit was 4.4 percent and 3.1 percent at June 30, 2011 and 2010, respectively. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 12 - INCOME TAXES</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Income from continuing operations before income taxes consisted of the following for the years ended June 30: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="60%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations before income taxes: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">United States </div></td> <td> </td> <td align="left">$</td> <td align="right">69,042</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">3,925</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(135,133</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">International </div></td> <td> </td> <td> </td> <td align="right">227,091</td> <td> </td> <td> </td> <td> </td> <td align="right">72,677</td> <td> </td> <td> </td> <td> </td> <td align="right">22,637</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total income (loss) from continuing operations before income taxes </div></td> <td> </td> <td align="left">$</td> <td align="right">296,133</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">76,602</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(112,496</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Current income taxes: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Federal </div></td> <td> </td> <td align="left">$</td> <td align="right">26,234</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,915</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(25,071</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">State </div></td> <td> </td> <td> </td> <td align="right">1,063</td> <td> </td> <td> </td> <td> </td> <td align="right">1,376</td> <td> </td> <td> </td> <td> </td> <td align="right">2,019</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">International </div></td> <td> </td> <td> </td> <td align="right">44,440</td> <td> </td> <td> </td> <td> </td> <td align="right">23,456</td> <td> </td> <td> </td> <td> </td> <td align="right">21,169</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total current income taxes </div></td> <td> </td> <td> </td> <td align="right">71,737</td> <td> </td> <td> </td> <td> </td> <td align="right">26,747</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,883</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Deferred income taxes </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(7,881</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">230</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(9,322</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Provision (benefit) for income taxes </div></td> <td> </td> <td align="left">$</td> <td align="right">63,856</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">26,977</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(11,205</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Effective tax rate </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">21.6</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">35.2</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">10.0</td> <td nowrap="nowrap">%</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt">The reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision (benefit) for income taxes was as follows for the years ended June 30: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="60%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Income taxes at U.S. statutory rate </div></td> <td> </td> <td align="left">$</td> <td align="right">103,647</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">26,811</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(39,374</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">State income taxes, net of federal tax benefits </div></td> <td> </td> <td> </td> <td align="right">1,956</td> <td> </td> <td> </td> <td> </td> <td align="right">2,290</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(131</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">U.S. income taxes provided on international income </div></td> <td> </td> <td> </td> <td align="right">21,556</td> <td> </td> <td> </td> <td> </td> <td align="right">1,107</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(47</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Combined tax effects of international income </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(35,423</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(4,460</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">4,029</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Change in valuation allowance and other uncertain tax positions </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(20,215</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">2,024</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(4,638</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Impact of goodwill impairment charges </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">29,296</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Impact of domestic production activities deduction </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(6,413</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(456</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">672</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Research and development credit </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,685</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(460</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,501</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">1,433</td> <td> </td> <td> </td> <td> </td> <td align="right">121</td> <td> </td> <td> </td> <td> </td> <td align="right">489</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Provision (benefit) for income taxes </div></td> <td> </td> <td align="left">$</td> <td align="right">63,856</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">26,977</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(11,205</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">During 2011, we recorded net valuation allowance adjustments of $20.5 million, which reduced income tax expense. The valuation allowance adjustments reflect a change in judgment about the realizability of certain deferred tax assets in the United Kingdom and Europe. The effect of this tax benefit is included in the income tax reconciliation table under the caption “change in valuation allowance and other uncertain tax positions.” </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">During 2011, we incurred U.S. Federal income taxes of $17.9 million associated with dividends of international subsidiary current year income. The effect of this expense is included in the income tax reconciliation table under the caption “U.S. income taxes provided on international income.” </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">During 2010, we recorded restructuring charges related to our engineered products business for which there was no tax benefit. The effect of this is included in the income tax reconciliation table under the caption “combined tax effects of international income.” </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">During 2009, we recorded goodwill impairment charges related to our surface finishing machines and services business and our engineered products business for the majority of which there was no tax benefit. The federal effect of these permanent differences is included in the income tax reconciliation table under the caption “impact of goodwill impairment charges.” </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">During 2009, the Internal Revenue Service completed its examination of our 2005 and 2006 tax years, which resulted in a net tax benefit of $1.8 million, including the impact of state taxes and interest. The federal effect of this benefit is included in the income tax reconciliation table under the caption “change in valuation allowance and other uncertain tax positions.” </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">During 2009, we recorded a valuation allowance adjustment of $2.8 million, which reduced income tax expense. This valuation allowance adjustment reflects a change in circumstances that caused a change in judgment about the realizability of certain deferred tax assets in Europe. The effect of this tax benefit is included in the income tax reconciliation table under the caption “change in valuation allowance and other uncertain tax positions.” </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt">The components of net deferred tax assets and liabilities were as follows at June 30: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="72%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Deferred tax assets: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Net operating loss carryforwards </div></td> <td> </td> <td align="left">$</td> <td align="right">65,768</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">61,605</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Inventory valuation and reserves </div></td> <td> </td> <td> </td> <td align="right">29,646</td> <td> </td> <td> </td> <td> </td> <td align="right">29,302</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Pension benefits </div></td> <td> </td> <td> </td> <td align="right">713</td> <td> </td> <td> </td> <td> </td> <td align="right">15,913</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Other postretirement benefits </div></td> <td> </td> <td> </td> <td align="right">8,312</td> <td> </td> <td> </td> <td> </td> <td align="right">10,499</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Accrued employee benefits </div></td> <td> </td> <td> </td> <td align="right">30,975</td> <td> </td> <td> </td> <td> </td> <td align="right">22,551</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Other accrued liabilities </div></td> <td> </td> <td> </td> <td align="right">7,939</td> <td> </td> <td> </td> <td> </td> <td align="right">6,755</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Hedging activities </div></td> <td> </td> <td> </td> <td align="right">13,528</td> <td> </td> <td> </td> <td> </td> <td align="right">9,785</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Tax credits and other carryforwards </div></td> <td> </td> <td> </td> <td align="right">5,431</td> <td> </td> <td> </td> <td> </td> <td align="right">5,541</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">2,558</td> <td> </td> <td> </td> <td> </td> <td align="right">7,953</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td> </td> <td align="right">164,870</td> <td> </td> <td> </td> <td> </td> <td align="right">169,904</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Valuation allowance </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(25,662</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(47,987</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total deferred tax assets </div></td> <td> </td> <td align="left">$</td> <td align="right">139,208</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">121,917</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="font-size:6pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Deferred tax liabilities: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Tax depreciation in excess of book </div></td> <td> </td> <td align="left">$</td> <td align="right">98,957</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">79,712</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Intangible assets </div></td> <td> </td> <td> </td> <td align="right">35,965</td> <td> </td> <td> </td> <td> </td> <td align="right">33,271</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total deferred tax liabilities </div></td> <td> </td> <td align="left">$</td> <td align="right">134,922</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">112,983</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total net deferred tax assets (liabilities) </div></td> <td> </td> <td align="left">$</td> <td align="right">4,286</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">8,934</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Included in deferred tax assets at June 30, 2011 is $65.8 million associated with net operating loss carryforwards in foreign and state jurisdictions. Of that amount, $9.3 million expires through June 2016, $6.8 million expires through 2021, $4.3 million expires through 2026, $6.9 million expires through 2031, and the remaining $38.5 million do not expire. The realization of these tax benefits is primarily dependent on future taxable income in these jurisdictions. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">A valuation allowance of $25.7 million has been placed against deferred tax assets in Europe, China, Hong Kong, Mexico, Brazil and the U.S., which would be allocated to income tax expense upon realization of these tax benefits. In 2011, the valuation allowance related to these deferred tax assets decreased $22.3 million. As the respective operations generate sufficient income, the valuation allowances will be partially or fully reversed at such time we believe it will be more likely than not that the deferred tax assets will be realized. In 2011, a change in judgment about the realizability of certain deferred tax assets in the United Kingdom resulting in the valuation allowance of $21.5 million being reversed. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">June 30, 2011 unremitted earnings of our non-U.S. subsidiaries and affiliates of $1,084.5 million, the majority of which have not been previously taxed in the U.S., are permanently reinvested, and accordingly, no deferred tax liability has been recorded in connection therewith. It is not practical to estimate the income tax effect that might be incurred if cumulative prior year earnings not previously taxed in the U.S. were remitted to the U.S. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest) is as follows as of June 30: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Balance at beginning of year </div></td> <td> </td> <td align="left">$</td> <td align="right">16,391</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">15,817</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Increases for tax positions of prior years </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">1,303</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Decreases for tax positions of prior years </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(85</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(184</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Increases for tax positions related to the current year </div></td> <td> </td> <td> </td> <td align="right">285</td> <td> </td> <td> </td> <td> </td> <td align="right">2,390</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Decreases related to settlement with taxing authority </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,190</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Decreases related to lapse of statute of limitations </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(794</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign currency translation </div></td> <td> </td> <td> </td> <td align="right">2,492</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,745</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Balance at end of year </div></td> <td> </td> <td align="left">$</td> <td align="right">18,289</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">16,391</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt">The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate in 2011, 2010 and 2009 is $18.0 million, $15.8 million and $15.2 million, respectively. Our policy is to recognize interest and penalties related to income taxes as a component of the provision for income taxes in the consolidated statement of income. We recognized interest expense of $0.9 million, $0.4 million and an interest reduction of $0.8 million for 2011, 2010 and 2009, respectively. As of June 30, 2011 and 2010 the amount of interest accrued was $3.2 million and $2.0 million, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">With few exceptions, we are no longer subject to income tax examinations by tax authorities for years prior to 2002. The Internal Revenue Service has audited all U.S. tax years prior to 2009 and is currently examining 2009 and 2010. Various state and foreign jurisdiction tax authorities are in the process of examining our income tax returns for various tax years ranging from 2002 to 2010. We continue to execute and expand our pan-European business model. As a result of this and other matters, we continuously review our uncertain tax positions and evaluate any potential issues that may lead to an increase or decrease in the total amount of unrecognized tax benefits recorded. We believe that it is reasonably possible that the amount of unrecognized tax benefits could decrease by approximately $13.0 million to $14.0 million within the next twelve months as a result of the progression of various federal, state, and foreign audits in process. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 13 - PENSION AND OTHER POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Pension benefits under defined benefit pension plans are based on years of service and, for certain plans, on average compensation for specified years preceding retirement. We fund pension costs in accordance with the funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA), as amended, for U.S. plans and in accordance with local regulations or customs for non-U.S. plans. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">We have an Executive Retirement Plan (ERP) for various executives and a Supplemental Executive Retirement Plan (SERP) which was closed to future participation on July 26, 2006. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">We presently provide varying levels of postretirement health care and life insurance benefits (OPEB) to certain employees and retirees. Postretirement health care benefits are available to employees and their spouses retiring on or after age 55 with 10 or more years of service. Beginning with retirements on or after January 1, 1998, our portion of the costs of postretirement health care benefits is capped at 1996 levels. Beginning with retirements on or after January 1, 2009, we have no obligation to provide a company subsidy for retiree medical costs. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">In 2010 and 2009, special termination benefits of $3.6 million and $2.7 million, respectively, were recognized in the U.S.-based defined benefit pension plan due to an amendment of the plan for supplemental retirement benefits. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">We use a June 30 measurement date for all of our plans. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Defined Benefit Pension Plans</i> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The funded status of our pension plans and amounts recognized in the consolidated balance sheets as of June 30 were as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Change in benefit obligation: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Benefit obligation, beginning of year </div></td> <td> </td> <td align="left">$</td> <td align="right">759,075</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">687,700</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Service cost </div></td> <td> </td> <td> </td> <td align="right">7,650</td> <td> </td> <td> </td> <td> </td> <td align="right">7,949</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Interest cost </div></td> <td> </td> <td> </td> <td align="right">40,984</td> <td> </td> <td> </td> <td> </td> <td align="right">42,437</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Participant contributions </div></td> <td> </td> <td> </td> <td align="right">39</td> <td> </td> <td> </td> <td> </td> <td align="right">33</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Actuarial (gains) losses </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(4,400</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">78,606</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Benefits and expenses paid </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(37,082</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(41,848</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign currency translation adjustments </div></td> <td> </td> <td> </td> <td align="right">22,074</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(19,679</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Plan amendments </div></td> <td> </td> <td> </td> <td align="right">675</td> <td> </td> <td> </td> <td> </td> <td align="right">3,577</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Plan curtailments </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,443</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">300</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Benefit obligation, end of year </div></td> <td> </td> <td align="left">$</td> <td align="right">786,572</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">759,075</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="font-size: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Change in plan assets: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Fair value of plan assets, beginning of year </div></td> <td> </td> <td align="left">$</td> <td align="right">656,516</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">606,875</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Actual return on plan assets </div></td> <td> </td> <td> </td> <td align="right">93,570</td> <td> </td> <td> </td> <td> </td> <td align="right">90,623</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Company contributions </div></td> <td> </td> <td> </td> <td align="right">8,536</td> <td> </td> <td> </td> <td> </td> <td align="right">6,970</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Participant contributions </div></td> <td> </td> <td> </td> <td align="right">39</td> <td> </td> <td> </td> <td> </td> <td align="right">33</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Benefits and expenses paid </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(39,525</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(41,847</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign currency translation adjustments </div></td> <td> </td> <td> </td> <td align="right">6,330</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(6,138</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Fair value of plan assets, end of year </div></td> <td> </td> <td align="left">$</td> <td align="right">725,466</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">656,516</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="font-size: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Funded status of plan </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(61,106</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(102,559</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="font-size: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Amounts recognized in the balance sheet consist of: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Long-term prepaid benefit </div></td> <td> </td> <td align="left">$</td> <td align="right">63,579</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">16,026</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Short-term accrued benefit obligation </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(7,619</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(6,778</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Accrued pension benefits </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(117,066</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(111,807</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net amount recognized </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(61,106</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(102,559</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The pre-tax amounts related to our defined benefit pension plans recognized in accumulated other comprehensive income were as follows at June 30: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unrecognized net actuarial losses </div></td> <td> </td> <td align="left">$</td> <td align="right">66,734</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">125,971</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unrecognized net prior service credits </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,540</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,534</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unrecognized transition obligations </div></td> <td> </td> <td> </td> <td align="right">1,202</td> <td> </td> <td> </td> <td> </td> <td align="right">1,120</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">66,396</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">124,557</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Prepaid pension benefits are included in other long-term assets. The assets of our U.S. and international defined benefit pension plans consist principally of capital stocks, corporate bonds and government securities. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">To the best of our knowledge and belief, the asset portfolios of our defined benefit pension plans do not contain our capital stock. We do not issue insurance contracts to cover future annual benefits of defined benefit pension plan participants. Transactions between us and our defined benefit pension plans include the reimbursement of plan expenditures incurred by us on behalf of the plans. To the best of our knowledge and belief, the reimbursement of cost is permissible under current ERISA rules or local government law. The accumulated benefit obligation for all defined benefit pension plans was $772.6 million and $743.0 million as of June 30, 2011 and 2010, respectively. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt">Included in the above information are plans with accumulated benefit obligations exceeding the fair value of plan assets as of June 30 as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="72%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Projected benefit obligation </div></td> <td> </td> <td align="left">$</td> <td align="right">124,684</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">189,042</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Accumulated benefit obligation </div></td> <td> </td> <td> </td> <td align="right">123,016</td> <td> </td> <td> </td> <td> </td> <td align="right">186,723</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Fair value of plan assets </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">70,456</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The components of net periodic pension cost include the following as of June 30: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="60%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Service cost </div></td> <td> </td> <td align="left">$</td> <td align="right">7,650</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">7,949</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">7,824</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest cost </div></td> <td> </td> <td> </td> <td align="right">40,984</td> <td> </td> <td> </td> <td> </td> <td align="right">42,437</td> <td> </td> <td> </td> <td> </td> <td align="right">41,652</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Expected return on plan assets </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(48,203</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(46,226</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(46,939</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Amortization of transition obligation </div></td> <td> </td> <td> </td> <td align="right">52</td> <td> </td> <td> </td> <td> </td> <td align="right">56</td> <td> </td> <td> </td> <td> </td> <td align="right">63</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Amortization of prior service credit </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(281</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(280</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(213</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Special termination benefits </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">3,577</td> <td> </td> <td> </td> <td> </td> <td align="right">2,651</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Curtailment loss </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">300</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Settlement loss </div></td> <td> </td> <td> </td> <td align="right">18</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Recognition of actuarial losses </div></td> <td> </td> <td> </td> <td align="right">12,277</td> <td> </td> <td> </td> <td> </td> <td align="right">4,447</td> <td> </td> <td> </td> <td> </td> <td align="right">1,900</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Net periodic pension cost </div></td> <td> </td> <td align="left">$</td> <td align="right">12,497</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">12,260</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">6,938</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Net periodic pension cost increased $5.4 million to $12.3 million in 2010 from $6.9 million in 2009. This increase was primarily the result of discount rate changes and recognition of special termination charges. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">As of June 30, 2011, the projected benefit payments, including future service accruals for these plans for 2012 through 2016, are </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">$41.2 million, $41.4 million, $42.6 million, $44.7 million and $46.6 million, respectively and $270.3 million in 2017 through 2021. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The amounts of accumulated other comprehensive loss expected to be recognized in net periodic pension cost during 2012 related to net actuarial losses and transition obligations are $8.2 million and $0.1 million, respectively. The amount of accumulated other comprehensive income expected to be recognized in net periodic pension cost during 2012 related to prior service credit is $0.2 million. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">We expect to contribute approximately $7.0 million to our pension plans in 2012. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Other Postretirement Benefit Plans</i> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The funded status of our other postretirement benefit plans and the related amounts recognized in the consolidated balance sheets were as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="72%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Change in benefit obligation: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Benefit obligation, beginning of year </div></td> <td> </td> <td align="left">$</td> <td align="right">19,910</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">20,598</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Service cost </div></td> <td> </td> <td> </td> <td align="right">77</td> <td> </td> <td> </td> <td> </td> <td align="right">99</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Interest cost </div></td> <td> </td> <td> </td> <td align="right">1,037</td> <td> </td> <td> </td> <td> </td> <td align="right">1,265</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Actuarial losses </div></td> <td> </td> <td> </td> <td align="right">2,474</td> <td> </td> <td> </td> <td> </td> <td align="right">1,260</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Benefits paid </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,203</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,312</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Plan amendment </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(524</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Benefit obligation, end of year </div></td> <td> </td> <td align="left">$</td> <td align="right">19,771</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">19,910</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="font-size:3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Funded status of plan </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(19,771</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(19,910</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="72%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Amounts recognized in the balance sheet consist of: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Short-term accrued benefit obligation </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,918</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(2,016</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Accrued postretirement benefits </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(17,853</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(17,894</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Net amount recognized </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(19,771</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(19,910</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The pre-tax amounts related to our OPEB plans which were recognized in accumulated other comprehensive income were as follows at June 30: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="72%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unrecognized net actuarial gains </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(864</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(3,529</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unrecognized net prior service cost </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(524</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,388</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(3,529</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The components of net periodic other postretirement costs (benefit) include the following for the years ended June 30: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="60%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Service cost </div></td> <td> </td> <td align="left">$</td> <td align="right">77</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">99</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">294</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest cost </div></td> <td> </td> <td> </td> <td align="right">1,037</td> <td> </td> <td> </td> <td> </td> <td align="right">1,266</td> <td> </td> <td> </td> <td> </td> <td align="right">1,631</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Amortization of prior service cost </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">8</td> <td> </td> <td> </td> <td> </td> <td align="right">39</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Recognition of actuarial gains </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(190</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(368</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(107</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Curtailment gain </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,169</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Net periodic other postretirement benefit cost (income) </div></td> <td> </td> <td align="left">$</td> <td align="right">924</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,005</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,312</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">As of June 30, 2010, the projected benefit payments, including future service accruals for our other postretirement benefit plans for 2012 through 2016, are $2.4 million, $2.3 million, $2.3 million, $2.1 million and $2.1 million, respectively and $8.6 million in 2017 through 2021. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The amounts of accumulated other comprehensive income expected to be recognized in net periodic other postretirement benefit cost during 2012 related to net actuarial gains are immaterial for prior service cost. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">We expect to contribute approximately $2.1 million to our postretirement benefit plans in 2012. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Assumptions</i> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The significant actuarial assumptions used to determine the present value of net benefit obligations for our defined benefit pension plans and other postretirement benefit plans were as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="66%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Discount Rate: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">U.S. plans </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">5.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">5.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">6.5</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">International plans </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">5.5-5.8</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">5.0-5.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">5.8-7.0</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Rates of future salary increases: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">U.S. plans </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">3.0 -5.0</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">3.0 -5.0</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">3.0 -5.0</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">International plans </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">2.0 -3.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">3.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">3.5</td> <td nowrap="nowrap">%</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt">The significant assumptions used to determine the net periodic costs (benefits) for our pension and other postretirement benefit plans were as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="60%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Discount Rate: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">U.S. plans </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">5.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">6.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">6.8</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">International plans </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">5.0-5.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">5.8-7.0</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">6.3 -6.8</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Rates of future salary increases: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">U.S. plans </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">3.0 -5.0</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">3.0 -5.0</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">3.0 -5.0</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">International plans </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">3.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">3.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">3.5-4.0</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Rate of return on plans assets: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">U.S. plans </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">8.0</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">8.0</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">8.0</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">International plans </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">6.4</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">6.7</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">7.1</td> <td nowrap="nowrap">%</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The rates of return on plan assets are based on historical performance, as well as future expected returns by asset class considering macroeconomic conditions, current portfolio mix, long-term investment strategy and other available relevant information. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The annual assumed rate of increase in the per capita cost of covered benefits (the health care cost trend rate) for our postretirement benefit plans was as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="60%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Health care costs trend rate assumed for next year </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">8.3</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">8.6</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">8.8</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Rate to which the cost trend rate gradually declines </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">4.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">4.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">4.5</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Year that the rate reaches the rate at which it is assumed to remain </div></td> <td> </td> <td> </td> <td align="right">2029</td> <td> </td> <td> </td> <td> </td> <td align="right">2029</td> <td> </td> <td> </td> <td> </td> <td align="right">2029</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Assumed health care cost trend rates have a significant effect on the cost components and obligation for the health care plans. A change of one percentage point in the assumed health care cost trend rates would have the following effects on the total service and interest cost components of our other postretirement cost and other postretirement benefit obligation at June 30, 2011: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="762"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">1% Increase</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">1% Decrease</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Effect on total service and interest cost components </div></td> <td> </td> <td align="left">$</td> <td align="right">58</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(51</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Effect on other postretirement obligation </div></td> <td> </td> <td> </td> <td align="right">849</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(757</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Plan Assets</i> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The primary objective of certain of our pension plans’ investment policies is to ensure that sufficient assets are available to provide the benefit obligations at the time the obligations come due. The overall investment strategy for the defined benefit pension plans’ assets combine considerations of preservation of principal and moderate risk-taking. The assumption of an acceptable level of risk is warranted in order to achieve satisfactory results consistent with the long-term objectives of the portfolio. Fixed income securities comprise a significant portion of the portfolio due to their plan-liability-matching characteristics and to address the plans’ cash flow requirements. Additionally, diversification of investments within each asset class is utilized to further reduce the impact of losses in single investments. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Investment management practices must comply with ERISA and all applicable regulations and rulings thereof. The use of derivative instruments is permitted where appropriate and necessary for achieving overall investment policy objectives. Currently, the use of derivative instruments is not significant when compared to the overall investment portfolio. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The Company utilizes a liability driven investment strategy (LDI) for the assets of its U.S. defined benefit pension plans in order to reduce the volatility of the funded status of these plans and to meet the obligations at an acceptable cost over the long term. This LDI strategy entails modifying the asset allocation and duration of the assets of the plans to more closely match the liability profile of these plans. The asset reallocation involves increasing the fixed income allocation, reducing the equity component and adding alternative investments. Longer duration interest rate swaps have been added in order to increase the overall duration of the asset portfolio to more closely match the liabilities. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt">Our defined benefit pension plans’ asset allocations as of June 30, 2011 and 2010 and target allocations for 2012, by asset class, were as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="65%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Target</td> <td>%</td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Equity </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">35</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">31</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">30</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Fixed Income </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">60</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">66</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">70</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Other </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">3</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">0</td> <td nowrap="nowrap">%</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The following sections describe the valuation methodologies used by the trustee to measure the fair value of the defined benefit pension plan assets, including an indication of the level in the fair value hierarchy in which each type of asset is generally classified (see Note 6 for the definition of fair value and a description of the fair value hierarchy). </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>Corporate fixed income securities </b>Investments in corporate fixed income securities consist of corporate debt and asset backed securities. These investments are classified as level two and are valued using independent observable market inputs such as the treasury curve, swap curve and yield curve. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>Common / collective trusts </b>Investments in common / collective trusts invest primarily in publicly traded securities and are classified as level two and valued based on observable market data. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>Common stock </b>Common stocks are classified as level one and are valued at their quoted market price. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>Government securities </b>Investments in government securities consist of fixed income securities such as U.S. government and agency obligations and foreign government bonds and asset and mortgage backed securities such as obligations issued by government sponsored organizations. These investments are classified as level two and are valued using independent observable market inputs such as the treasury curve, credit spreads and interest rates. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>Other fixed income securities </b>Investments in other fixed income securities are classified as level two and valued based on observable market data. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>Other </b>Other investments consist primarily of short term instruments including money market funds, certificates of deposit and state and local obligations. These investments are primarily classified as level two and are valued using independent observable market inputs. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The fair value methods described may not be reflective of future fair values. Additionally, while the Company believes the valuation methods used by the plans’ trustee are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in different fair value measurement at the reporting date. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The following table presents the fair value of the benefit plan assets classified under the appropriate level of the fair value hierarchy as of June 30, 2011: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Level 1</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Level 2</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Level 3</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Total</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr style="font-size: 6pt"> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Corporate fixed income securities </div></td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">338,955</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">338,955</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Common / collective trusts: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Value funds </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">92,625</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">92,625</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Growth funds </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">54,392</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">54,392</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Balanced funds </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">15,798</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">15,798</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Common stock </div></td> <td> </td> <td> </td> <td align="right">93,403</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">93,403</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Government securities: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">U.S. Government securities </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">30,236</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">30,236</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign government securities </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">27,465</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">27,465</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Other fixed income securities </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">41,043</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">41,043</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">1,723</td> <td> </td> <td> </td> <td> </td> <td align="right">36,772</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">38,495</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total investments </div></td> <td> </td> <td align="left">$</td> <td align="right">95,126</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">637,286</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">732,412</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt">The following table presents the fair value of the benefit plan assets classified under the appropriate level of the fair value hierarchy as of June 30, 2010: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="44%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Level 1</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Level 2</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Level 3</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Total</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Corporate fixed income securities </div></td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">364,773</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">364,773</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Common / collective trusts: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Value funds </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">74,532</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">74,532</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Growth funds </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">42,985</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">42,985</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Balanced funds </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">12,460</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">12,460</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Common stock </div></td> <td> </td> <td> </td> <td align="right">75,714</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">75,714</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Government securities: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">U.S. Government securities </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">30,562</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">30,562</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign government securities </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">20,627</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">20,627</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Other fixed income securities </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">17,114</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">17,114</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">1,513</td> <td> </td> <td> </td> <td> </td> <td align="right">16,294</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">17,807</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total investments </div></td> <td> </td> <td align="left">$</td> <td align="right">77,227</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">579,347</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">656,574</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 14 – COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME</b> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="60%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td>years ended June 30 (in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net income (loss) </div></td> <td> </td> <td align="left">$</td> <td align="right">232,277</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">48,202</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(118,631</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unrealized gain (loss) on derivatives designated and qualified as cash flow hedges, net of income tax expense (benefit) of $0.4 million, $(0.6) million and $(1.9) million, respectively </div></td> <td> </td> <td> </td> <td align="right">642</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(936</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,006</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Reclassification of unrealized (gain) loss on expired derivatives designated and qualified as cash flow hedges, net of income tax expense (benefit) of $0.4 million, $0.9 million and $(3.3) million, respectively </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(679</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,482</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">5,290</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unrecognized net pension and other postretirement benefit gains (losses), net of income tax expense (benefit) of $15.1 million, $(14.1) million and $0.6 million, respectively </div></td> <td> </td> <td> </td> <td align="right">28,087</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(17,397</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(14,283</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Reclassification of net pension and other postretirement benefit losses, net of income tax benefit of $4.4 million, $0.9 million and $0.5 million, respectively </div></td> <td> </td> <td> </td> <td align="right">7,131</td> <td> </td> <td> </td> <td> </td> <td align="right">2,975</td> <td> </td> <td> </td> <td> </td> <td align="right">1,496</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign currency translation adjustments, net of income tax expense (benefit) of $75.0 million, $(41.5) million and $(73.5) million, respectively </div></td> <td> </td> <td> </td> <td align="right">122,358</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(68,837</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(122,044</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total comprehensive income (loss), net of tax </div></td> <td> </td> <td> </td> <td align="right">389,816</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(37,475</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(251,178</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Comprehensive income (loss) attributable to noncontrolling interests </div></td> <td> </td> <td> </td> <td align="right">4,779</td> <td> </td> <td> </td> <td> </td> <td align="right">606</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,046</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Comprehensive income (loss) attributable to Kennametal Shareowners </div></td> <td> </td> <td align="left">$</td> <td align="right">385,037</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(38,081</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(250,132</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The components of accumulated other comprehensive income (loss) consist of the following at June 30 (in thousands): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="60%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">2011</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Pre-tax</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Tax</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">After-tax</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unrealized loss on derivatives designated and qualified as cash flow hedges </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(3,227</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">1,331</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,896</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unrecognized net actuarial losses </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(71,262</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">23,003</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(48,259</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unrecognized net prior service credit </div></td> <td> </td> <td> </td> <td align="right">2,252</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(963</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1,289</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unrecognized transition obligation </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,203</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(95</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,298</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign currency translation adjustments </div></td> <td> </td> <td> </td> <td align="right">161,451</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(28,758</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">132,693</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total accumulated other comprehensive income </div></td> <td> </td> <td align="left">$</td> <td align="right">88,011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(5,482</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">82,529</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="60%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td nowrap="nowrap" align="left">2010</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Pre-tax</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Tax</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">After-tax</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unrealized loss on derivatives designated and qualified as cash flow hedges </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(2,998</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">1,139</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,859</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unrecognized net actuarial losses </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(122,442</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">38,629</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(83,813</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unrecognized net prior service credit </div></td> <td> </td> <td> </td> <td align="right">2,534</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(962</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1,572</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unrecognized transition obligation </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,120</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(127</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,247</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign currency translation adjustments </div></td> <td> </td> <td> </td> <td align="right">19,913</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(7,347</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">12,566</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total accumulated other comprehensive loss </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(104,113</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">31,332</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(72,781</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 15 - RESTRUCTURING AND ASSET IMPAIRMENT CHARGES</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">During 2011, we completed our restructuring plans to reduce costs and improve operating efficiencies. These actions related to the rationalization of certain manufacturing and service facilities as well as other employment and cost reduction programs. Restructuring and related charges recorded in 2011 amounted to $21.5 million, including $13.7 million of restructuring charges of which $1.1 million were related to inventory disposals and recorded in cost of goods sold. Restructuring related charges of $4.4 million were recorded in cost of goods sold and $3.4 million in operating expense during 2011. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">During 2010, restructuring and related charges amounted to $48.9 million, including $44.3 million of restructuring charges of which $0.4 million were related to inventory disposals and recorded in cost of goods sold. Restructuring related charges of $3.5 million were recorded in cost of goods sold and $1.1 million in operating expense during 2010. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">During 2009, restructuring and related charges amounted to $73.3 million, including $64.7 million of restructuring charges of which $2.1 million were related to inventory disposals and recorded in cost of goods sold. Restructuring related charges of $8.8 million were recorded in cost of goods sold and a net restructuring related benefit of $0.2 million was recorded in operating expense during 2009. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The combined total pre-tax charges from inception of these restructuring programs through June 30, 2011 were approximately $150 million. The majority of these pre-tax charges were severance charges. Total restructuring and related charges since inception through June 30, 2011 have been recorded as follows: approximately $104 million in Industrial, approximately $44 million in Infrastructure and approximately $2 million in Corporate for the write-off our pre-existing ERP system. These restructuring programs are complete and we do not expect any additional charges. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Restructuring accruals are recorded in other current liabilities in our consolidated balance sheet and the amount attributable to each segment is as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="24%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Asset</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Cash</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">June 30, 2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Expense</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Write-down</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Expenditures</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Translation</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">June 30, 2011</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Industrial </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Severance </div></td> <td> </td> <td align="left">$</td> <td align="right">18,327</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">4,363</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(16,510</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">1,631</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">7,811</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Facilities </div></td> <td> </td> <td> </td> <td align="right">508</td> <td> </td> <td> </td> <td> </td> <td align="right">2,318</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,857</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(444</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">525</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">403</td> <td> </td> <td> </td> <td> </td> <td align="right">2,031</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(931</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">101</td> <td> </td> <td> </td> <td> </td> <td align="right">1,604</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Total Industrial </div></td> <td> </td> <td> </td> <td align="right">19,238</td> <td> </td> <td> </td> <td> </td> <td align="right">8,712</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,857</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(17,885</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1,732</td> <td> </td> <td> </td> <td> </td> <td align="right">9,940</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Infrastructure </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Severance </div></td> <td> </td> <td> </td> <td align="right">7,637</td> <td> </td> <td> </td> <td> </td> <td align="right">2,484</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(9,399</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">928</td> <td> </td> <td> </td> <td> </td> <td align="right">1,650</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Facilities </div></td> <td> </td> <td> </td> <td align="right">211</td> <td> </td> <td> </td> <td> </td> <td align="right">1,319</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,057</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(204</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">269</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">168</td> <td> </td> <td> </td> <td> </td> <td align="right">1,156</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(530</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">58</td> <td> </td> <td> </td> <td> </td> <td align="right">852</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total Infrastructure </div></td> <td> </td> <td> </td> <td align="right">8,016</td> <td> </td> <td> </td> <td> </td> <td align="right">4,959</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,057</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(10,133</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">986</td> <td> </td> <td> </td> <td> </td> <td align="right">2,771</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">27,254</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">13,671</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(2,914</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(28,018</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">2,718</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">12,711</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="24%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Asset</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">June 30, 2009</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Expense</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Write-down</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Cash Expenditures</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Translation</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">June 30, 2010</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Industrial </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Severance </div></td> <td> </td> <td align="left">$</td> <td align="right">18,378</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">29,082</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(28,086</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,047</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">18,327</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Facilities </div></td> <td> </td> <td> </td> <td align="right">477</td> <td> </td> <td> </td> <td> </td> <td align="right">790</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(604</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(142</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(13</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">508</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">176</td> <td> </td> <td> </td> <td> </td> <td align="right">1,393</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,241</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">75</td> <td> </td> <td> </td> <td> </td> <td align="right">403</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Total Industrial </div></td> <td> </td> <td> </td> <td align="right">19,031</td> <td> </td> <td> </td> <td> </td> <td align="right">31,265</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(604</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(29,469</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(985</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">19,238</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Infrastructure </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Severance </div></td> <td> </td> <td> </td> <td align="right">7,659</td> <td> </td> <td> </td> <td> </td> <td align="right">12,119</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(11,704</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(437</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">7,637</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Facilities </div></td> <td> </td> <td> </td> <td align="right">199</td> <td> </td> <td> </td> <td> </td> <td align="right">329</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(251</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(59</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(7</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">211</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">73</td> <td> </td> <td> </td> <td> </td> <td align="right">580</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(517</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">32</td> <td> </td> <td> </td> <td> </td> <td align="right">168</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total Infrastructure </div></td> <td> </td> <td> </td> <td align="right">7,931</td> <td> </td> <td> </td> <td> </td> <td align="right">13,028</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(251</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(12,280</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(412</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">8,016</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">26,962</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">44,293</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(855</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(41,749</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,397</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">27,254</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Asset impairment </i>See discussion of our 2009 Industrial goodwill and indefinite-lived trademark impairment charges in Note 2 under the caption “Goodwill and Other Intangible Assets.” </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 16 - FINANCIAL INSTRUMENTS</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The methods used to estimate the fair value of our financial instruments are as follows: </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Cash and Equivalents, Current Maturities of Long-Term Debt and Notes Payable to Banks </i>The carrying amounts approximate their fair value because of the short maturity of the instruments. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Long-Term Debt </i>Fixed rate debt had a fair market value of $315.8 million and $325.5 million at June 30, 2011 and 2010, respectively. The fair value is determined based on the quoted market price of this debt as of June 30. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Foreign Exchange Contracts </i>The notional amount of outstanding foreign exchange contracts, translated at current exchange rates, was $37.6 million and $9.4 million at June 30, 2011 and 2010, respectively. We would have paid immaterial amounts at June 30, 2011 and 2010, respectively, to settle these contracts representing the fair value of these agreements. The carrying value equaled the fair value for these contracts at June 30, 2011 and 2010. Fair value was estimated based on quoted market prices of comparable instruments. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Interest Rate Swap Contracts </i>The cumulative notional amount of outstanding forward starting interest rate swap contracts was $150 million at June 30, 2011. We recorded a net liability of $2.4 million on these contracts which was recorded as an offset in other comprehensive income, net of tax. The carrying value equaled the fair value for these contracts at June 30, 2011. Fair value was estimated based on quoted market prices of comparable instruments. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Concentrations of Credit Risk </i>Financial instruments that potentially subject us to concentrations of credit risk consist primarily of temporary cash investments and trade receivables. By policy, we make temporary cash investments with high credit quality financial institutions and limit the amount of exposure to any one financial institution. With respect to trade receivables, concentrations of credit risk are significantly reduced, because we serve numerous customers in many industries and geographic areas. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">We are exposed to counterparty credit risk for nonperformance of derivatives and, in the unlikely event of nonperformance, to market risk for changes in interest and currency rates, as well as settlement risk. We manage exposure to counterparty credit risk through credit standards, diversification of counterparties and procedures to monitor concentrations of credit risk. We do not anticipate nonperformance by any of the counterparties. As of June 30, 2011 and 2010, we had no significant concentrations of credit risk. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 17 — STOCK-BASED COMPENSATION</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Options</i> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The assumptions used in our Black-Scholes valuation related to grants made during 2011, 2010 and 2009 were as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="64%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Risk-free interest rate </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">1.4</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">2.3</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">3.0</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Expected life (years) <sup style="font-size: 85%; vertical-align: text-top">(2)</sup> </div></td> <td> </td> <td> </td> <td align="right">4.5</td> <td> </td> <td> </td> <td> </td> <td align="right">4.5</td> <td> </td> <td> </td> <td> </td> <td align="right">4.5</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Expected volatility <sup style="font-size: 85%; vertical-align: text-top">(3)</sup> </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">47.0</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">44.0</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">27.7</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Expected dividend yield </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">2.0</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">1.8</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">1.3</td> <td nowrap="nowrap">%</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 0pt; width: 18%; border-top: 0px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96%"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(2)</td> <td> </td> <td>Expected life is derived from historical experience.</td> </tr> <tr style="font-size: 3pt"> <td> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(3)</td> <td> </td> <td>Expected volatility is based on the implied historical volatility of our stock.</td> </tr> </table> <div align="left" style="font-size: 10pt; margin-top: 6pt">Changes in our stock options for 2011 were as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Weighted</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Weighted</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Average</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Aggregate</td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Average</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Remaining</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Intrinsic value</td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Options</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Exercise Price</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Life (years)</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">(in thousands)</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Options outstanding, June 30, 2010 </div></td> <td> </td> <td> </td> <td align="right">3,582,075</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">25.59</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Granted </div></td> <td> </td> <td> </td> <td align="right">559,987</td> <td> </td> <td> </td> <td> </td> <td align="right">27.30</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Exercised </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(646,567</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">22.25</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Lapsed and forfeited </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(107,492</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">26.05</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Options outstanding, June 30, 2011 </div></td> <td> </td> <td> </td> <td align="right">3,388,003</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">26.50</td> <td> </td> <td> </td> <td> </td> <td align="right">6.0</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">53,216</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Options vested and expected to vest, June 30, 2011 </div></td> <td> </td> <td> </td> <td align="right">3,299,431</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">26.54</td> <td> </td> <td> </td> <td> </td> <td align="right">5.9</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">51,706</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Options exercisable, June 30, 2011 </div></td> <td> </td> <td> </td> <td align="right">1,948,442</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">26.85</td> <td> </td> <td> </td> <td> </td> <td align="right">4.6</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">29,937</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">During 2011, 2010 and 2009, compensation expense related to stock options was $5.2 million, $4.3 million and $4.0 million, respectively. As of June 30, 2011, the total unrecognized compensation cost related to options outstanding was $4.6 million and is expected to be recognized over a weighted average period of 2.2 years. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Weighted average fair value of options granted during 2011, 2010 and 2009 was $9.33, $7.32 and $7.15, respectively. Fair value of options vested during 2011, 2010 and 2009 was $4.4 million, $4.1 million and $3.5 million, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Tax benefits, relating to excess stock-based compensation deductions, are presented in the statement of cash flow as financing cash inflows. Tax benefits resulting from stock-based compensation deductions in excess of amounts reported for financial reporting purposes were $2.9 million, $0.5 million and $0.9 million in 2011, 2010 and 2009, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The amount of cash received from the exercise of capital stock options during 2011, 2010 and 2009 was $13.6 million, $7.2 million and $2.2 million, respectively. The related tax benefit was $3.2 million, $1.2 million, and $1.1 million for 2011, 2010 and 2009, respectively. The total intrinsic value of options exercised during 2011, 2010 and 2009 was $9.9 million, $4.0 million, and $3.0 million, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Restricted Stock Awards</i> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Changes in our restricted stock awards for 2011 were as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Weighted</td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Average Fair</td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Shares</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Value</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unvested restricted stock awards, June 30, 2010 </div></td> <td> </td> <td> </td> <td align="right">198,701</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">32.71</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Vested </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(105,847</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">32.56</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Forfeited </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,539</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">33.00</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unvested restricted stock awards, June 30, 2011 </div></td> <td> </td> <td> </td> <td align="right">89,315</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">32.90</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt">During 2011, 2010 and 2009, compensation expense related to restricted stock awards was $2.1 million, $2.7 million and $4.5 million, respectively. As of June 30, 2011, the total unrecognized compensation cost related to unvested restricted stock awards was </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">$0.9 million and is expected to be recognized over a weighted average period of 0.9 years. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Restricted Stock Units — Time Vesting and Performance Vesting</i> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">In fiscal year 2010, we began granting time vesting restricted stock units under the 2002 Plan in place of restricted stock awards that had been traditionally granted under the plan. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Performance vesting restricted stock units (performance units) were granted to certain individuals in fiscal 2011. These performance units are earned pro rata each year if certain performance goals are met over a 3-year period, and are also subject to a service condition that requires the individual to be employed by the Company at the payment date after the 3-year performance period. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Changes in our time vesting and performance vesting restricted stock units for 2011 were as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Performance</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Performance</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Vesting</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Time Vesting</td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Vesting</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Weighted</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Time Vesting</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Weighted</td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Stock</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Average Fair</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Stock</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Average Fair</td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Units</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Value</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Units</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Value</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unvested performance vesting and time vesting restricted stock units, June 30, 2010 </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">546,713</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">24.29</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Granted </div></td> <td> </td> <td> </td> <td align="right">134,807</td> <td> </td> <td> </td> <td> </td> <td align="right">26.89</td> <td> </td> <td> </td> <td> </td> <td align="right">526,153</td> <td> </td> <td> </td> <td> </td> <td align="right">26.95</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Vested </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(84,784</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">23.53</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Forfeited </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(18,439</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">26.89</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(82,000</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">25.47</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unvested performance vesting and time vesting restricted stock units, June 30, 2011 </div></td> <td> </td> <td> </td> <td align="right">116,368</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">26.89</td> <td> </td> <td> </td> <td> </td> <td align="right">906,082</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">25.81</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">During 2011 and 2010, compensation expense related to time vesting and performance vesting restricted stock units was $10.3 million and $2.7 million, respectively. As of June 30, 2011, the total unrecognized compensation cost related to unvested time vesting and performance vesting restricted stock units was $13.1 million and is expected to be recognized over a weighted average period of 2.4 years. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Restricted Stock Units – STEP</i> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">On November 26, 2007, the Company adopted a one-time, long-term equity program, the Kennametal Inc. 2008 Strategic Transformational Equity Program, under the 2002 Plan (STEP). The STEP was designed to compensate participating executives for achievement of certain performance conditions during the period which began on October 1, 2007 and ends on September 30, 2011. Each participant was awarded a maximum number of restricted stock units, each representing a contingent right to receive one share of capital stock of the Company to the extent the unit is earned during the performance period and becomes payable under the STEP. The performance conditions are based on the Company’s total shareholder return (TSR), which governs 35 percent of the awarded restricted stock units, and cumulative adjusted earnings per share (EPS), which governs 65 percent of the awarded restricted stock units. As of June 30, 2011, participating executives had been granted awards equal to that number of restricted stock units having a value of $26.0 million. A further amount of $11.3 million remains available under the STEP for additional awards that could be made to other executives; however, the Company has decided that it will not make any further awards under the STEP. No new grants under the STEP were made in 2011. There are no voting rights or dividends associated with restricted stock units under the STEP. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Under the STEP, there are two interim measurement dates, September 30, 2009 and 2010, and a final measurement date, September 30, 2011, at which performance is assessed. Participants may earn up to a cumulative 35 percent of the maximum restricted stock units awarded if certain threshold levels of performance are achieved through the two interim measurement dates. The threshold level of performance for September 30, 2009 and September 30, 2010 were not achieved. Generally, the payment of any restricted stock units under the STEP is also conditioned upon the participants being employed by the Company on the date of distribution and the satisfaction of all other provisions of the STEP. As of June 30, 2011, no restricted stock units have been earned or paid under the STEP. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt">Changes in the EPS performance-based portion of STEP restricted stock units for 2011 were as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Weighted</td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Stock</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Average Fair</td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Units</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Value</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unvested EPS performance-based restricted stock units, June 30, 2010 </div></td> <td> </td> <td> </td> <td align="right">502,371</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">35.54</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Forfeited </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(70,582</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">37.45</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unvested EPS performance-based restricted stock units, June 30, 2011 </div></td> <td> </td> <td> </td> <td align="right">431,789</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">35.23</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 3pt">As of June 30, 2011, we assumed that none of the EPS performance-based restricted stock units will vest. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Changes in the TSR performance-based STEP restricted stock units for 2011 were as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Weighted</td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Stock</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Average Fair</td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Units</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Value</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unvested TSR performance-based restricted stock units, June 30, 2010 </div></td> <td> </td> <td> </td> <td align="right">270,501</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">8.35</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Forfeited </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(38,004</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">9.20</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unvested TSR performance-based restricted stock units, June 30, 2011 </div></td> <td> </td> <td> </td> <td align="right">232,497</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">8.21</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 3pt">During 2011 and 2010, compensation expense related to STEP restricted stock units was $0.4 million and $0.5 million, respectively. Based on a change in the probability of achieving the performance criteria related to the vesting of the EPS performance-based portion of these restricted stock units, in 2009, we reversed previously recognized compensation expense related to these units. The net credit recognized as compensation expense related to restricted stock units was $0.6 million for 2009. As of June 30, 2011, the total unrecognized compensation cost related to unvested STEP restricted stock units was $0.1 million and is expected to be recognized over a weighted average period of 0.3 years. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 18 — ENVIRONMENTAL MATTERS</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The operation of our business has exposed us to certain liabilities and compliance costs related to environmental matters. We are involved in various environmental cleanup and remediation activities at certain of our locations. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Superfund Sites </i>We are involved as a PRP at various sites designated by the USEPA as Superfund sites. For certain of these sites, we have evaluated the claims and potential liabilities and have determined that neither are material, individually or in the aggregate. For certain other sites, proceedings are in the very early stages and have not yet progressed to a point where it is possible to estimate the ultimate cost of remediation, the timing and extent of remedial action that may be required by governmental authorities or the amount of our liability alone or in relation to that of any other PRPs. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Other Environmental Issues </i>We establish and maintain reserves for other potential environmental issues. At June 30, 2011 and 2010, the total of accruals for these reserves was $5.4 million and $5.2 million, respectively. These totals represent anticipated costs associated with the remediation of these issues. We recorded additional reserves of $1.5 million and $0.6 million in 2011 and 2010, respectively. Additional reserves recorded in 2011 primarily relate to an environmental liability in our international operations. We recorded unfavorable foreign currency translation adjustments of $0.6 million during 2011 and favorable foreign currency translation adjustment of $0.6 million during 2010, respectively. Cash payments of $0.8 million and $0.1 million were made against these reserves during 2011 and 2010, respectively. In 2011 we also had a $1.1 million reversal of an international environmental liability and payment of a civil penalty of $0.2 million related to our Chestnut Ridge, Pennsylvania facility closure. The reserves we have established for environmental liabilities represent our best current estimate of the costs of addressing all identified environmental situations, based on our review of currently available evidence, and take into consideration our prior experience in remediation and that of other companies, as well as public information released by the USEPA, other governmental agencies, and by the PRP groups in which we are participating. Although the reserves currently appear to be sufficient to cover these environmental liabilities, there are uncertainties associated with environmental liabilities, and we can give no assurance that our estimate of any environmental liability will not increase or decrease in the future. The reserved and unreserved liabilities for all environmental concerns could change substantially due to factors such as the nature and extent of contamination, changes in remedial requirements, technological changes, discovery of new information, the financial strength of other PRPs, the identification of new PRPs and the involvement of and direction taken by the government on these matters. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt">We maintain a Corporate EHS Department, as well as an EHS Steering Committee, to monitor compliance with environmental regulations and to oversee remediation activities. In addition, we have designated EHS coordinators who are responsible for each of our global manufacturing facilities at each of our global manufacturing facilities. Our financial management team periodically meets with members of the Corporate EHS Department and the Corporate Legal Department to review and evaluate the status of environmental projects and contingencies. On a quarterly basis, we review financial provisions and reserves for environmental contingencies and adjust these reserves when appropriate. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 19 — COMMITMENTS AND CONTINGENCIES</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Legal Matters </i>Various lawsuits arising during the normal course of business are pending against us. In our opinion, the ultimate liability, if any, resulting from these matters will have no significant effect on our consolidated financial positions or results of operations. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Lease Commitments </i>We lease a wide variety of facilities and equipment under operating leases, primarily for warehouses, production and office facilities and equipment. Lease expense under these rentals amounted to $27.1 million, $28.2 million and $30.9 million in 2011, 2010 and 2009, respectively. Future minimum lease payments for non-cancelable operating leases are $17.0 million, $11.0 million, $6.5 million, $4.1 million and $2.6 million for the years 2012 through 2016 and $23.7 million thereafter. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Purchase Commitments </i>We have purchase commitments for materials, supplies and machinery and equipment as part of the ordinary conduct of business. A few of these commitments extend beyond one year and are based on minimum purchase requirements. We believe these commitments are not at prices in excess of current market. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Other Contractual Obligations </i>We do not have material financial guarantees or other contractual commitments that are reasonably likely to adversely affect our liquidity. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>Related Party Transactions </i>Sales to affiliated companies were immaterial in 2011, 2010 and 2009. We do not have any other related party transactions that affect our operations, results of operations, cash flow or financial condition. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 20 — SEGMENT DATA</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">We operate in two reportable operating segments consisting of Industrial and Infrastructure. We do not allocate certain corporate expenses related to executive retirement plans, the Company’s Board of Directors and strategic initiatives, as well as certain other costs and report them in Corporate. Segment determination is based upon internal organizational structure, the manner in which we organize segments for making operating decisions and assessing performance, the availability of separate financial results and materiality considerations. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Sales to a single customer did not aggregate 3.5 percent or more of total sales in 2011, 2010 or 2009. Export sales from U.S. operations to unaffiliated customers were $90.6 million, $84.1 million, and $116.6 million in 2011, 2010 and 2009, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>INDUSTRIAL </i>The Industrial segment serves customers that operate in industrial end markets such as aerospace, defense, transportation and general engineering. The customers in these end markets manufacture engines, airframes, automobiles, trucks, ships and various industrial goods. The technology needs and level of customization vary by customer and industry served. We deliver value to our Industrial segment customers through our application expertise and diverse product offering. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><i>INFRASTRUCTURE </i>The Infrastructure segment serves customers that operate in the earthworks and energy end markets. These customers support primary industries such as oil and gas, power generation, underground mining, surface and hard rock mining, highway construction and road maintenance. Generally, our Infrastructure segment customers are served through a customer intimacy model that allows us to offer full system solutions by gaining an in-depth understanding of our customers’ engineering needs. Our product offering promotes value by bringing enhanced performance and productivity to our customers’ processes and systems. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">We restated the segment financial information for the years ended June 30, 2010 and 2009, respectively, to reflect the change in reportable operating segments. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt">Segment data is summarized as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="70%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">External sales: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Industrial </div></td> <td> </td> <td align="left">$  </td> <td align="right">1,528,672</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">1,166,793</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">1,277,981</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Infrastructure </div></td> <td> </td> <td> </td> <td align="right">874,821</td> <td> </td> <td> </td> <td> </td> <td align="right">717,274</td> <td> </td> <td> </td> <td> </td> <td align="right">721,878</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total external sales </div></td> <td> </td> <td align="left">$  </td> <td align="right">2,403,493</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">1,884,067</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">1,999,859</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="font size: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Operating income (loss): </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Industrial </div></td> <td> </td> <td align="left">$  </td> <td align="right">209,663</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">31,210</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(115,083</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Infrastructure </div></td> <td> </td> <td> </td> <td align="right">121,733</td> <td> </td> <td> </td> <td> </td> <td align="right">79,899</td> <td> </td> <td> </td> <td> </td> <td align="right">19,768</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Corporate </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(9,723</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(17,881</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(4,503</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total operating income </div></td> <td> </td> <td align="left">$  </td> <td align="right">321,673</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">93,228</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(99,818</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="font size: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest expense </div></td> <td> </td> <td align="left">$  </td> <td align="right">22,760</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">25,203</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">27,244</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Other expense (income), net </div></td> <td> </td> <td> </td> <td align="right">2,780</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(8,577</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(14,566</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations before income taxes </div></td> <td> </td> <td align="left">$  </td> <td align="right">296,133</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">76,602</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(112,496</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="font size: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Depreciation and amortization </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Industrial </div></td> <td> </td> <td align="left">$  </td> <td align="right">68,000</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">70,383</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">71,718</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Infrastructure </div></td> <td> </td> <td> </td> <td align="right">25,471</td> <td> </td> <td> </td> <td> </td> <td align="right">26,046</td> <td> </td> <td> </td> <td> </td> <td align="right">24,663</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total depreciation and amortization </div></td> <td> </td> <td align="left">$  </td> <td align="right">93,471</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">96,429</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">96,381</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="font size: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Equity income: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Industrial </div></td> <td> </td> <td align="left">$  </td> <td align="right">229</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">107</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Infrastructure </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total equity income </div></td> <td> </td> <td align="left">$  </td> <td align="right">229</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">107</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="font size: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total assets: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Industrial </div></td> <td> </td> <td align="left">$  </td> <td align="right">1,531,409</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">1,310,635</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">1,386,324</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Infrastructure </div></td> <td> </td> <td> </td> <td align="right">785,718</td> <td> </td> <td> </td> <td> </td> <td align="right">682,169</td> <td> </td> <td> </td> <td> </td> <td align="right">672,287</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 0px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Corporate </div></td> <td> </td> <td> </td> <td align="right">437,342</td> <td> </td> <td> </td> <td> </td> <td align="right">275,019</td> <td> </td> <td> </td> <td> </td> <td align="right">288,363</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total assets </div></td> <td> </td> <td align="left">$  </td> <td align="right">2,754,469</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">2,267,823</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">2,346,974</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="font size: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Capital expenditures: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Industrial </div></td> <td> </td> <td align="left">$  </td> <td align="right">48,518</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">31,609</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">78,841</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Infrastructure </div></td> <td> </td> <td> </td> <td align="right">26,411</td> <td> </td> <td> </td> <td> </td> <td align="right">11,017</td> <td> </td> <td> </td> <td> </td> <td align="right">26,001</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 0px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Corporate </div></td> <td> </td> <td> </td> <td align="right">8,513</td> <td> </td> <td> </td> <td> </td> <td align="right">14,053</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total capital expenditures </div></td> <td> </td> <td align="left">$  </td> <td align="right">83,442</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">56,679</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">104,842</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="font size: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Investments in affiliated companies: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Industrial </div></td> <td> </td> <td align="left">$  </td> <td align="right">829</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">748</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">635</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Infrastructure </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">1,503</td> <td> </td> <td> </td> <td> </td> <td align="right">1,503</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total investments in affiliated companies </div></td> <td> </td> <td align="left">$  </td> <td align="right">829</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">2,251</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">2,138</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt">Geographic information for sales, based on country of origin, and assets is as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="60%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">External sales: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">United States </div></td> <td> </td> <td align="left">$</td> <td align="right">1,041,427</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">839,168</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">907,967</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Germany </div></td> <td> </td> <td> </td> <td align="right">398,532</td> <td> </td> <td> </td> <td> </td> <td align="right">313,929</td> <td> </td> <td> </td> <td> </td> <td align="right">360,560</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Asia </div></td> <td> </td> <td> </td> <td align="right">441,397</td> <td> </td> <td> </td> <td> </td> <td align="right">311,616</td> <td> </td> <td> </td> <td> </td> <td align="right">266,676</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">United Kingdom </div></td> <td> </td> <td> </td> <td align="right">63,466</td> <td> </td> <td> </td> <td> </td> <td align="right">52,145</td> <td> </td> <td> </td> <td> </td> <td align="right">59,749</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Canada </div></td> <td> </td> <td> </td> <td align="right">59,743</td> <td> </td> <td> </td> <td> </td> <td align="right">44,538</td> <td> </td> <td> </td> <td> </td> <td align="right">47,348</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">398,928</td> <td> </td> <td> </td> <td> </td> <td align="right">322,671</td> <td> </td> <td> </td> <td> </td> <td align="right">357,559</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total external sales </div></td> <td> </td> <td align="left">$</td> <td align="right">2,403,493</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,884,067</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,999,859</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total assets: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">United States </div></td> <td> </td> <td align="left">$</td> <td align="right">1,165,705</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,091,510</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,153,109</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Germany </div></td> <td> </td> <td> </td> <td align="right">472,665</td> <td> </td> <td> </td> <td> </td> <td align="right">333,917</td> <td> </td> <td> </td> <td> </td> <td align="right">371,394</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Asia </div></td> <td> </td> <td> </td> <td align="right">440,535</td> <td> </td> <td> </td> <td> </td> <td align="right">330,282</td> <td> </td> <td> </td> <td> </td> <td align="right">302,355</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">United Kingdom </div></td> <td> </td> <td> </td> <td align="right">67,549</td> <td> </td> <td> </td> <td> </td> <td align="right">35,964</td> <td> </td> <td> </td> <td> </td> <td align="right">41,233</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Canada </div></td> <td> </td> <td> </td> <td align="right">40,421</td> <td> </td> <td> </td> <td> </td> <td align="right">29,025</td> <td> </td> <td> </td> <td> </td> <td align="right">28,055</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">567,594</td> <td> </td> <td> </td> <td> </td> <td align="right">447,125</td> <td> </td> <td> </td> <td> </td> <td align="right">450,828</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total assets: </div></td> <td> </td> <td align="left">$</td> <td align="right">2,754,469</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">2,267,823</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">2,346,974</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 21 – SELECTED QUARTERLY FINANCIAL DATA </b>(unaudited) </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td nowrap="nowrap" align="left">For the quarter ended (in thousands, except per share data)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">September 30</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">December 31</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">March 31</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">June 30</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>2011</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Sales </div></td> <td> </td> <td align="left">$</td> <td align="right">529,158</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">565,768</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">614,830</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">693,737</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Gross profit </div></td> <td> </td> <td> </td> <td align="right">188,740</td> <td> </td> <td> </td> <td> </td> <td align="right">200,025</td> <td> </td> <td> </td> <td> </td> <td align="right">229,981</td> <td> </td> <td> </td> <td> </td> <td align="right">265,645</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Income from continuing operations attributable to Kennametal <sup style="font-size: 85%; vertical-align: text-top">(4)</sup> </div></td> <td> </td> <td> </td> <td align="right">34,921</td> <td> </td> <td> </td> <td> </td> <td align="right">43,469</td> <td> </td> <td> </td> <td> </td> <td align="right">64,683</td> <td> </td> <td> </td> <td> </td> <td align="right">86,655</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net income attributable to Kennametal <sup style="font-size: 85%; vertical-align: text-top">(4)</sup> </div></td> <td> </td> <td> </td> <td align="right">34,921</td> <td> </td> <td> </td> <td> </td> <td align="right">43,469</td> <td> </td> <td> </td> <td> </td> <td align="right">64,683</td> <td> </td> <td> </td> <td> </td> <td align="right">86,655</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Basic earnings per share attributable to Kennametal <sup style="font-size: 85%; vertical-align: text-top">(5)</sup> Continuing operations </div></td> <td> </td> <td> </td> <td align="right">0.43</td> <td> </td> <td> </td> <td> </td> <td align="right">0.53</td> <td> </td> <td> </td> <td> </td> <td align="right">0.79</td> <td> </td> <td> </td> <td> </td> <td align="right">1.06</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Net income </div></td> <td> </td> <td> </td> <td align="right">0.43</td> <td> </td> <td> </td> <td> </td> <td align="right">0.53</td> <td> </td> <td> </td> <td> </td> <td align="right">0.79</td> <td> </td> <td> </td> <td> </td> <td align="right">1.06</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Diluted earnings per share attributable to Kennametal <sup style="font-size: 85%; vertical-align: text-top">(5)</sup> Continuing operations </div></td> <td> </td> <td> </td> <td align="right">0.42</td> <td> </td> <td> </td> <td> </td> <td align="right">0.52</td> <td> </td> <td> </td> <td> </td> <td align="right">0.77</td> <td> </td> <td> </td> <td> </td> <td align="right">1.04</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Net income </div></td> <td> </td> <td> </td> <td align="right">0.42</td> <td> </td> <td> </td> <td> </td> <td align="right">0.52</td> <td> </td> <td> </td> <td> </td> <td align="right">0.77</td> <td> </td> <td> </td> <td> </td> <td align="right">1.04</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"><b>2010</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Sales </div></td> <td> </td> <td align="left">$</td> <td align="right">409,395</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">442,865</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">493,165</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">538,642</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Gross profit </div></td> <td> </td> <td> </td> <td align="right">117,801</td> <td> </td> <td> </td> <td> </td> <td align="right">140,088</td> <td> </td> <td> </td> <td> </td> <td align="right">170,324</td> <td> </td> <td> </td> <td> </td> <td align="right">199,515</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">(Loss) income from continuing operations attributable to Kennametal <sup style="font-size: 85%; vertical-align: text-top">(4)</sup> </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(8,450</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">6,023</td> <td> </td> <td> </td> <td> </td> <td align="right">9,685</td> <td> </td> <td> </td> <td> </td> <td align="right">40,584</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Net (loss) income attributable to Kennametal <sup style="font-size: 85%; vertical-align: text-top">(4)</sup> </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(9,817</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">5,967</td> <td> </td> <td> </td> <td> </td> <td align="right">9,685</td> <td> </td> <td> </td> <td> </td> <td align="right">40,584</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Basic (loss) earnings per share attributable to Kennametal <sup style="font-size: 85%; vertical-align: text-top">(5)</sup> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Continuing operations </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(0.10</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">0.07</td> <td> </td> <td> </td> <td> </td> <td align="right">0.12</td> <td> </td> <td> </td> <td> </td> <td align="right">0.50</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Net (loss) income </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(0.12</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">0.07</td> <td> </td> <td> </td> <td> </td> <td align="right">0.12</td> <td> </td> <td> </td> <td> </td> <td align="right">0.50</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Diluted (loss) earnings per share attributable to Kennametal <sup style="font-size: 85%; vertical-align: text-top">(5)</sup> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Continuing operations </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(0.10</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">0.07</td> <td> </td> <td> </td> <td> </td> <td align="right">0.12</td> <td> </td> <td> </td> <td> </td> <td align="right">0.49</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Net (loss) income </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(0.12</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">0.07</td> <td> </td> <td> </td> <td> </td> <td align="right">0.12</td> <td> </td> <td> </td> <td> </td> <td align="right">0.49</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 0pt; width: 18%; border-top: 0px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt; text-align: left"> <tr> <td width="1%"></td> <td width="1%"></td> <td width="96%"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(4)</td> <td> </td> <td>Income from continuing operations and net income attributable to Kennametal for the quarter ended June 30 and March 31, 2011 and December 31 and September 30, 2010, includes restructuring charges of $4.9 million, $1.0 million, $3.4 million and $3.3 million, respectively. Income from continuing operations and net income attributable to Kennametal for the quarter ended June 30 and March 31, 2010, includes restructuring charges of $12.0 million and $20.7 million, respectively. Income (loss) from continuing operations and net income (loss) attributable to Kennametal for the quarter ended December 31 and September 30, 2009, includes restructuring charges of $3.3 million and $7.8 million, respectively.</td> </tr> <tr style="font-size: 1pt"> <td> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(5)</td> <td> </td> <td>Earnings per share amounts attributable to Kennametal for each quarter are computed using the weighted average number of shares outstanding during the quarter. Earnings per share amounts attributable to Kennametal for the full year are computed using the weighted average number of shares outstanding during the year. Thus, the sum of the four quarters’ earnings per share attributable to Kennametal does not always equal the full-year earnings per share attributable to Kennametal.</td> </tr> </table> </div>

<div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>GOODWILL AND OTHER INTANGIBLE ASSETS </b>Goodwill represents the excess of cost over the fair value of the net assets of acquired companies. Goodwill and intangible assets with indefinite lives are tested at least annually for impairment. We perform our annual impairment tests during the June quarter in connection with our annual planning process unless there are impairment indicators that warrant a test prior to that. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">The carrying amount of goodwill attributable to each segment at June 30 is as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="64%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Industrial</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Infrastructure</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Total</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Goodwill </div></td> <td> </td> <td align="left">$</td> <td align="right">406,626</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">247,199</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">653,825</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Accumulated impairment losses </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(150,842</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(150,842</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Balance as of June 30, 2009 </div></td> <td> </td> <td align="left">$</td> <td align="right">255,784</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">247,199</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">502,983</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Acquisitions / Divestitures </div></td> <td> </td> <td> </td> <td align="right">536</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">536</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Translation </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(13,188</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(888</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(14,076</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Change in goodwill </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(12,652</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(888</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(13,540</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Goodwill </div></td> <td> </td> <td align="left">$</td> <td align="right">393,974</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">246,311</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">640,285</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Accumulated impairment losses </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(150,842</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(150,842</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Balance as of June 30, 2010 </div></td> <td> </td> <td align="left">$</td> <td align="right">243,132</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">246,311</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">489,443</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Adjustments </div></td> <td> </td> <td align="left">$</td> <td align="right">252</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">252</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Translation </div></td> <td> </td> <td> </td> <td align="right">17,719</td> <td> </td> <td> </td> <td> </td> <td align="right">3,914</td> <td> </td> <td> </td> <td> </td> <td align="right">21,633</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Change in goodwill </div></td> <td> </td> <td> </td> <td align="right">17,971</td> <td> </td> <td> </td> <td> </td> <td align="right">3,914</td> <td> </td> <td> </td> <td> </td> <td align="right">21,885</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Goodwill </div></td> <td> </td> <td> </td> <td align="right">411,945</td> <td> </td> <td> </td> <td> </td> <td align="right">250,225</td> <td> </td> <td> </td> <td> </td> <td align="right">662,170</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Accumulated impairment losses </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(150,842</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(150,842</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Balance as of June 30, 2011 </div></td> <td> </td> <td align="left">$</td> <td align="right">261,103</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">250,225</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">511,328</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 3pt">We recorded no goodwill or intangible asset impairments in 2011 and 2010. We also recorded goodwill impairment charges of $37.3 million related to our surface finishing machines and services business and $62.9 million related to our engineered products business in 2009. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">During 2010, we acquired the remaining noncontrolling interest of a consolidated entity which resulted in additional Industrial goodwill of $0.7 million. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 10pt">The components of our intangible assets were as follows as of June 30: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="40%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Estimated</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">2011</td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">2010</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Useful Life</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Gross Carrying</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Accumulated</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Gross Carrying</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Accumulated</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">(in years)</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Amount</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Amortization</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Amount</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Amortization</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Contract-based </div></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">4 to 15</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">6,349</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(5,380</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">6,357</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(5,218</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Technology-based and other </div></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">4 to 15</td> <td> </td> <td> </td> <td> </td> <td align="right">39,743</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(25,442</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">37,136</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(20,422</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Customer-related </div></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">10 to 20</td> <td> </td> <td> </td> <td> </td> <td align="right">113,977</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(38,275</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">108,470</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(29,255</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unpatented technology </div></td> <td> </td> <td> </td> <td align="right">30</td> <td> </td> <td> </td> <td> </td> <td align="right">19,540</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(4,740</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">19,216</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(4,572</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Trademarks </div></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">5 to 20</td> <td> </td> <td> </td> <td> </td> <td align="right">10,902</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(4,875</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">10,647</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,876</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Trademarks </div></td> <td> </td> <td colspan="3" nowrap="nowrap" align="center">Indefinite</td> <td> </td> <td> </td> <td align="right">40,480</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">36,823</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">230,991</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(78,712</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">218,649</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(63,343</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">During 2011, we recorded foreign currency translation adjustments which increased intangible assets by $8.5 million. During 2010, we recorded foreign currency translation adjustments which decreased intangible assets by $6.0 million. We also recorded a $10.8 million impairment charge in 2009 for the indefinite-lived trademark for our surface finishing machines and services business. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Amortization expense for intangible assets was $11.6 million, $13.1 million and $13.1 million for 2011, 2010 and 2009, respectively. Estimated amortization expense for 2012 through 2016 is $10.8 million, $10.1 million, $9.8 million, $9.5 million, and $9.1 million, respectively. </div> </div> </div>

<div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="64%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Industrial</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Infrastructure</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Total</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Goodwill </div></td> <td> </td> <td align="left">$</td> <td align="right">406,626</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">247,199</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">653,825</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Accumulated impairment losses </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(150,842</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(150,842</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Balance as of June 30, 2009 </div></td> <td> </td> <td align="left">$</td> <td align="right">255,784</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">247,199</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">502,983</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Acquisitions / Divestitures </div></td> <td> </td> <td> </td> <td align="right">536</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">536</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Translation </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(13,188</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(888</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(14,076</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Change in goodwill </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(12,652</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(888</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(13,540</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Goodwill </div></td> <td> </td> <td align="left">$</td> <td align="right">393,974</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">246,311</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">640,285</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Accumulated impairment losses </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(150,842</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(150,842</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Balance as of June 30, 2010 </div></td> <td> </td> <td align="left">$</td> <td align="right">243,132</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">246,311</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">489,443</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Adjustments </div></td> <td> </td> <td align="left">$</td> <td align="right">252</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">252</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Translation </div></td> <td> </td> <td> </td> <td align="right">17,719</td> <td> </td> <td> </td> <td> </td> <td align="right">3,914</td> <td> </td> <td> </td> <td> </td> <td align="right">21,633</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Change in goodwill </div></td> <td> </td> <td> </td> <td align="right">17,971</td> <td> </td> <td> </td> <td> </td> <td align="right">3,914</td> <td> </td> <td> </td> <td> </td> <td align="right">21,885</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Goodwill </div></td> <td> </td> <td> </td> <td align="right">411,945</td> <td> </td> <td> </td> <td> </td> <td align="right">250,225</td> <td> </td> <td> </td> <td> </td> <td align="right">662,170</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Accumulated impairment losses </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(150,842</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(150,842</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Balance as of June 30, 2011 </div></td> <td> </td> <td align="left">$</td> <td align="right">261,103</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">250,225</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">511,328</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>

<div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="40%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Estimated</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">2011</td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">2010</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Useful Life</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Gross Carrying</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Accumulated</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Gross Carrying</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Accumulated</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">(in years)</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Amount</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Amortization</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Amount</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Amortization</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Contract-based </div></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">4 to 15</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">6,349</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(5,380</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">6,357</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(5,218</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Technology-based and other </div></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">4 to 15</td> <td> </td> <td> </td> <td> </td> <td align="right">39,743</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(25,442</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">37,136</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(20,422</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Customer-related </div></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">10 to 20</td> <td> </td> <td> </td> <td> </td> <td align="right">113,977</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(38,275</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">108,470</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(29,255</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unpatented technology </div></td> <td> </td> <td> </td> <td align="right">30</td> <td> </td> <td> </td> <td> </td> <td align="right">19,540</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(4,740</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">19,216</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(4,572</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Trademarks </div></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">5 to 20</td> <td> </td> <td> </td> <td> </td> <td align="right">10,902</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(4,875</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">10,647</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,876</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Trademarks </div></td> <td> </td> <td colspan="3" nowrap="nowrap" align="center">Indefinite</td> <td> </td> <td> </td> <td align="right">40,480</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">36,823</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">230,991</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(78,712</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">218,649</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(63,343</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>

<div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Derivatives designated as hedging instruments </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Other current assets — range forward contracts </div></td> <td> </td> <td align="left">$</td> <td align="right">87</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">34</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Other current liabilities — range forward contracts </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(159</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Other assets — forward starting interest rate swap contracts </div></td> <td> </td> <td> </td> <td align="right">772</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Other liabilities — forward starting interest rate swap contracts </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,169</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,348</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total derivatives designated as hedging instruments </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,469</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,316</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Derivatives not designated as hedging instruments </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Other current assets — currency forward contracts </div></td> <td> </td> <td> </td> <td align="right">37</td> <td> </td> <td> </td> <td> </td> <td align="right">9</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Other current liabilities — currency forward contracts </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,103</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total derivatives not designated as hedging instruments </div></td> <td> </td> <td> </td> <td align="right">35</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,094</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total derivatives </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(2,434</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(3,410</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>

<div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Accrued employee benefits </div></td> <td> </td> <td align="left">$</td> <td align="right">55,833</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">44,474</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Payroll, state and local taxes </div></td> <td> </td> <td> </td> <td align="right">15,997</td> <td> </td> <td> </td> <td> </td> <td align="right">9,107</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Accrued restructuring expense (Note 15) </div></td> <td> </td> <td> </td> <td align="right">12,711</td> <td> </td> <td> </td> <td> </td> <td align="right">27,254</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">82,665</td> <td> </td> <td> </td> <td> </td> <td align="right">71,971</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total other current liabilities </div></td> <td> </td> <td align="left">$</td> <td align="right">167,206</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">152,806</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>

<div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">7.2% Senior Unsecured Notes due 2012 net of discount of $0.1 million and $0.2 million for 2011 and 2010, respectively. Also including interest rate swap adjustments of $6.1 million and $12.1 million in 2011 and 2010, respectively </div></td> <td> </td> <td align="left">$</td> <td align="right">305,954</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">311,849</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Capital leases with terms expiring through 2015 at 2.3% to 2.8% in 2011 and 2.0% to 4.7% in 2010 </div></td> <td> </td> <td> </td> <td align="right">3,113</td> <td> </td> <td> </td> <td> </td> <td align="right">6,020</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">156</td> <td> </td> <td> </td> <td> </td> <td align="right">345</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total debt and capital leases </div></td> <td> </td> <td> </td> <td align="right">309,223</td> <td> </td> <td> </td> <td> </td> <td align="right">318,214</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Less current maturities: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Long-term debt </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(306,032</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(133</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Capital leases </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,272</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,406</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total current maturities </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(307,304</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,539</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Long-term debt and capital leases, less current maturities </div></td> <td> </td> <td align="left">$</td> <td align="right">1,919</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">314,675</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="85%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td align="left">(in thousands)</td> <td> </td> <td> </td> <td> </td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">2012 </div></td> <td> </td> <td align="left">$</td> <td align="right">1,392</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">2013 </div></td> <td> </td> <td> </td> <td align="right">1,111</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">2014 </div></td> <td> </td> <td> </td> <td align="right">274</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">2015 </div></td> <td> </td> <td> </td> <td align="right">728</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">2016 </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">After 2016 </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total future minimum lease payments </div></td> <td> </td> <td> </td> <td align="right">3,505</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Less amount representing interest </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(392</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Amount recognized as capital lease obligations </div></td> <td> </td> <td align="left">$</td> <td align="right">3,113</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="60%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations before income taxes: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">United States </div></td> <td> </td> <td align="left">$</td> <td align="right">69,042</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">3,925</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(135,133</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">International </div></td> <td> </td> <td> </td> <td align="right">227,091</td> <td> </td> <td> </td> <td> </td> <td align="right">72,677</td> <td> </td> <td> </td> <td> </td> <td align="right">22,637</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total income (loss) from continuing operations before income taxes </div></td> <td> </td> <td align="left">$</td> <td align="right">296,133</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">76,602</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(112,496</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Current income taxes: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Federal </div></td> <td> </td> <td align="left">$</td> <td align="right">26,234</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,915</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(25,071</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">State </div></td> <td> </td> <td> </td> <td align="right">1,063</td> <td> </td> <td> </td> <td> </td> <td align="right">1,376</td> <td> </td> <td> </td> <td> </td> <td align="right">2,019</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">International </div></td> <td> </td> <td> </td> <td align="right">44,440</td> <td> </td> <td> </td> <td> </td> <td align="right">23,456</td> <td> </td> <td> </td> <td> </td> <td align="right">21,169</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total current income taxes </div></td> <td> </td> <td> </td> <td align="right">71,737</td> <td> </td> <td> </td> <td> </td> <td align="right">26,747</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,883</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Deferred income taxes </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(7,881</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">230</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(9,322</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Provision (benefit) for income taxes </div></td> <td> </td> <td align="left">$</td> <td align="right">63,856</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">26,977</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(11,205</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Effective tax rate </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">21.6</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">35.2</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">10.0</td> <td nowrap="nowrap">%</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="60%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Income taxes at U.S. statutory rate </div></td> <td> </td> <td align="left">$</td> <td align="right">103,647</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">26,811</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(39,374</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">State income taxes, net of federal tax benefits </div></td> <td> </td> <td> </td> <td align="right">1,956</td> <td> </td> <td> </td> <td> </td> <td align="right">2,290</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(131</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">U.S. income taxes provided on international income </div></td> <td> </td> <td> </td> <td align="right">21,556</td> <td> </td> <td> </td> <td> </td> <td align="right">1,107</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(47</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Combined tax effects of international income </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(35,423</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(4,460</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">4,029</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Change in valuation allowance and other uncertain tax positions </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(20,215</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">2,024</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(4,638</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Impact of goodwill impairment charges </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">29,296</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Impact of domestic production activities deduction </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(6,413</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(456</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">672</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Research and development credit </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,685</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(460</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,501</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">1,433</td> <td> </td> <td> </td> <td> </td> <td align="right">121</td> <td> </td> <td> </td> <td> </td> <td align="right">489</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Provision (benefit) for income taxes </div></td> <td> </td> <td align="left">$</td> <td align="right">63,856</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">26,977</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(11,205</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="72%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Deferred tax assets: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Net operating loss carryforwards </div></td> <td> </td> <td align="left">$</td> <td align="right">65,768</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">61,605</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Inventory valuation and reserves </div></td> <td> </td> <td> </td> <td align="right">29,646</td> <td> </td> <td> </td> <td> </td> <td align="right">29,302</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Pension benefits </div></td> <td> </td> <td> </td> <td align="right">713</td> <td> </td> <td> </td> <td> </td> <td align="right">15,913</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Other postretirement benefits </div></td> <td> </td> <td> </td> <td align="right">8,312</td> <td> </td> <td> </td> <td> </td> <td align="right">10,499</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Accrued employee benefits </div></td> <td> </td> <td> </td> <td align="right">30,975</td> <td> </td> <td> </td> <td> </td> <td align="right">22,551</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Other accrued liabilities </div></td> <td> </td> <td> </td> <td align="right">7,939</td> <td> </td> <td> </td> <td> </td> <td align="right">6,755</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Hedging activities </div></td> <td> </td> <td> </td> <td align="right">13,528</td> <td> </td> <td> </td> <td> </td> <td align="right">9,785</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Tax credits and other carryforwards </div></td> <td> </td> <td> </td> <td align="right">5,431</td> <td> </td> <td> </td> <td> </td> <td align="right">5,541</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">2,558</td> <td> </td> <td> </td> <td> </td> <td align="right">7,953</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td> </td> <td align="right">164,870</td> <td> </td> <td> </td> <td> </td> <td align="right">169,904</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Valuation allowance </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(25,662</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(47,987</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total deferred tax assets </div></td> <td> </td> <td align="left">$</td> <td align="right">139,208</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">121,917</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="font-size:6pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Deferred tax liabilities: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Tax depreciation in excess of book </div></td> <td> </td> <td align="left">$</td> <td align="right">98,957</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">79,712</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Intangible assets </div></td> <td> </td> <td> </td> <td align="right">35,965</td> <td> </td> <td> </td> <td> </td> <td align="right">33,271</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total deferred tax liabilities </div></td> <td> </td> <td align="left">$</td> <td align="right">134,922</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">112,983</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total net deferred tax assets (liabilities) </div></td> <td> </td> <td align="left">$</td> <td align="right">4,286</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">8,934</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Balance at beginning of year </div></td> <td> </td> <td align="left">$</td> <td align="right">16,391</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">15,817</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Increases for tax positions of prior years </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">1,303</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Decreases for tax positions of prior years </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(85</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(184</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Increases for tax positions related to the current year </div></td> <td> </td> <td> </td> <td align="right">285</td> <td> </td> <td> </td> <td> </td> <td align="right">2,390</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Decreases related to settlement with taxing authority </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,190</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Decreases related to lapse of statute of limitations </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(794</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign currency translation </div></td> <td> </td> <td> </td> <td align="right">2,492</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,745</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Balance at end of year </div></td> <td> </td> <td align="left">$</td> <td align="right">18,289</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">16,391</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Change in benefit obligation: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Benefit obligation, beginning of year </div></td> <td> </td> <td align="left">$</td> <td align="right">759,075</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">687,700</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Service cost </div></td> <td> </td> <td> </td> <td align="right">7,650</td> <td> </td> <td> </td> <td> </td> <td align="right">7,949</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Interest cost </div></td> <td> </td> <td> </td> <td align="right">40,984</td> <td> </td> <td> </td> <td> </td> <td align="right">42,437</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Participant contributions </div></td> <td> </td> <td> </td> <td align="right">39</td> <td> </td> <td> </td> <td> </td> <td align="right">33</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Actuarial (gains) losses </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(4,400</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">78,606</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Benefits and expenses paid </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(37,082</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(41,848</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign currency translation adjustments </div></td> <td> </td> <td> </td> <td align="right">22,074</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(19,679</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Plan amendments </div></td> <td> </td> <td> </td> <td align="right">675</td> <td> </td> <td> </td> <td> </td> <td align="right">3,577</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Plan curtailments </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,443</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">300</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Benefit obligation, end of year </div></td> <td> </td> <td align="left">$</td> <td align="right">786,572</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">759,075</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="font-size: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Change in plan assets: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Fair value of plan assets, beginning of year </div></td> <td> </td> <td align="left">$</td> <td align="right">656,516</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">606,875</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Actual return on plan assets </div></td> <td> </td> <td> </td> <td align="right">93,570</td> <td> </td> <td> </td> <td> </td> <td align="right">90,623</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Company contributions </div></td> <td> </td> <td> </td> <td align="right">8,536</td> <td> </td> <td> </td> <td> </td> <td align="right">6,970</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Participant contributions </div></td> <td> </td> <td> </td> <td align="right">39</td> <td> </td> <td> </td> <td> </td> <td align="right">33</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Benefits and expenses paid </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(39,525</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(41,847</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign currency translation adjustments </div></td> <td> </td> <td> </td> <td align="right">6,330</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(6,138</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Fair value of plan assets, end of year </div></td> <td> </td> <td align="left">$</td> <td align="right">725,466</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">656,516</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="font-size: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Funded status of plan </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(61,106</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(102,559</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="font-size: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Amounts recognized in the balance sheet consist of: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Long-term prepaid benefit </div></td> <td> </td> <td align="left">$</td> <td align="right">63,579</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">16,026</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Short-term accrued benefit obligation </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(7,619</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(6,778</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Accrued pension benefits </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(117,066</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(111,807</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net amount recognized </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(61,106</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(102,559</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unrecognized net actuarial losses </div></td> <td> </td> <td align="left">$</td> <td align="right">66,734</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">125,971</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unrecognized net prior service credits </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,540</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,534</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unrecognized transition obligations </div></td> <td> </td> <td> </td> <td align="right">1,202</td> <td> </td> <td> </td> <td> </td> <td align="right">1,120</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">66,396</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">124,557</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="72%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Projected benefit obligation </div></td> <td> </td> <td align="left">$</td> <td align="right">124,684</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">189,042</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Accumulated benefit obligation </div></td> <td> </td> <td> </td> <td align="right">123,016</td> <td> </td> <td> </td> <td> </td> <td align="right">186,723</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Fair value of plan assets </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">70,456</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="60%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Service cost </div></td> <td> </td> <td align="left">$</td> <td align="right">7,650</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">7,949</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">7,824</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest cost </div></td> <td> </td> <td> </td> <td align="right">40,984</td> <td> </td> <td> </td> <td> </td> <td align="right">42,437</td> <td> </td> <td> </td> <td> </td> <td align="right">41,652</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Expected return on plan assets </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(48,203</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(46,226</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(46,939</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Amortization of transition obligation </div></td> <td> </td> <td> </td> <td align="right">52</td> <td> </td> <td> </td> <td> </td> <td align="right">56</td> <td> </td> <td> </td> <td> </td> <td align="right">63</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Amortization of prior service credit </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(281</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(280</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(213</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Special termination benefits </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">3,577</td> <td> </td> <td> </td> <td> </td> <td align="right">2,651</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Curtailment loss </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">300</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Settlement loss </div></td> <td> </td> <td> </td> <td align="right">18</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Recognition of actuarial losses </div></td> <td> </td> <td> </td> <td align="right">12,277</td> <td> </td> <td> </td> <td> </td> <td align="right">4,447</td> <td> </td> <td> </td> <td> </td> <td align="right">1,900</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Net periodic pension cost </div></td> <td> </td> <td align="left">$</td> <td align="right">12,497</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">12,260</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">6,938</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="72%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Change in benefit obligation: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Benefit obligation, beginning of year </div></td> <td> </td> <td align="left">$</td> <td align="right">19,910</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">20,598</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Service cost </div></td> <td> </td> <td> </td> <td align="right">77</td> <td> </td> <td> </td> <td> </td> <td align="right">99</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Interest cost </div></td> <td> </td> <td> </td> <td align="right">1,037</td> <td> </td> <td> </td> <td> </td> <td align="right">1,265</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Actuarial losses </div></td> <td> </td> <td> </td> <td align="right">2,474</td> <td> </td> <td> </td> <td> </td> <td align="right">1,260</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Benefits paid </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,203</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,312</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Plan amendment </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(524</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Benefit obligation, end of year </div></td> <td> </td> <td align="left">$</td> <td align="right">19,771</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">19,910</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="font-size:3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Funded status of plan </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(19,771</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(19,910</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="72%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Amounts recognized in the balance sheet consist of: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Short-term accrued benefit obligation </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,918</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(2,016</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Accrued postretirement benefits </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(17,853</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(17,894</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Net amount recognized </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(19,771</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(19,910</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="72%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unrecognized net actuarial gains </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(864</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(3,529</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unrecognized net prior service cost </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(524</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,388</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(3,529</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="60%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Service cost </div></td> <td> </td> <td align="left">$</td> <td align="right">77</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">99</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">294</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest cost </div></td> <td> </td> <td> </td> <td align="right">1,037</td> <td> </td> <td> </td> <td> </td> <td align="right">1,266</td> <td> </td> <td> </td> <td> </td> <td align="right">1,631</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Amortization of prior service cost </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">8</td> <td> </td> <td> </td> <td> </td> <td align="right">39</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Recognition of actuarial gains </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(190</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(368</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(107</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Curtailment gain </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,169</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Net periodic other postretirement benefit cost (income) </div></td> <td> </td> <td align="left">$</td> <td align="right">924</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,005</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,312</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="66%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Discount Rate: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">U.S. plans </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">5.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">5.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">6.5</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">International plans </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">5.5-5.8</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">5.0-5.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">5.8-7.0</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Rates of future salary increases: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">U.S. plans </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">3.0 -5.0</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">3.0 -5.0</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">3.0 -5.0</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">International plans </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">2.0 -3.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">3.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">3.5</td> <td nowrap="nowrap">%</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="60%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Discount Rate: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">U.S. plans </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">5.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">6.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">6.8</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">International plans </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">5.0-5.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">5.8-7.0</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">6.3 -6.8</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Rates of future salary increases: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">U.S. plans </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">3.0 -5.0</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">3.0 -5.0</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">3.0 -5.0</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">International plans </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">3.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">3.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td nowrap="nowrap" align="right">3.5-4.0</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Rate of return on plans assets: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">U.S. plans </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">8.0</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">8.0</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">8.0</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">International plans </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">6.4</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">6.7</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">7.1</td> <td nowrap="nowrap">%</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="60%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Health care costs trend rate assumed for next year </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">8.3</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">8.6</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">8.8</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Rate to which the cost trend rate gradually declines </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">4.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">4.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">4.5</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Year that the rate reaches the rate at which it is assumed to remain </div></td> <td> </td> <td> </td> <td align="right">2029</td> <td> </td> <td> </td> <td> </td> <td align="right">2029</td> <td> </td> <td> </td> <td> </td> <td align="right">2029</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="762"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">1% Increase</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">1% Decrease</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Effect on total service and interest cost components </div></td> <td> </td> <td align="left">$</td> <td align="right">58</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(51</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Effect on other postretirement obligation </div></td> <td> </td> <td> </td> <td align="right">849</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(757</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="65%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Target</td> <td>%</td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Equity </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">35</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">31</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">30</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Fixed Income </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">60</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">66</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">70</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Other </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">3</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">0</td> <td nowrap="nowrap">%</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Level 1</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Level 2</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Level 3</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Total</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr style="font-size: 6pt"> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Corporate fixed income securities </div></td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">338,955</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">338,955</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Common / collective trusts: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Value funds </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">92,625</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">92,625</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Growth funds </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">54,392</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">54,392</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Balanced funds </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">15,798</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">15,798</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Common stock </div></td> <td> </td> <td> </td> <td align="right">93,403</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">93,403</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Government securities: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">U.S. Government securities </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">30,236</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">30,236</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign government securities </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">27,465</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">27,465</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Other fixed income securities </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">41,043</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">41,043</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">1,723</td> <td> </td> <td> </td> <td> </td> <td align="right">36,772</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">38,495</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total investments </div></td> <td> </td> <td align="left">$</td> <td align="right">95,126</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">637,286</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">732,412</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="44%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Level 1</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Level 2</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Level 3</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Total</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Corporate fixed income securities </div></td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">364,773</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">364,773</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Common / collective trusts: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Value funds </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">74,532</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">74,532</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Growth funds </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">42,985</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">42,985</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Balanced funds </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">12,460</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">12,460</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Common stock </div></td> <td> </td> <td> </td> <td align="right">75,714</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">75,714</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Government securities: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">U.S. Government securities </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">30,562</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">30,562</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign government securities </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">20,627</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">20,627</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Other fixed income securities </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">17,114</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">17,114</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">1,513</td> <td> </td> <td> </td> <td> </td> <td align="right">16,294</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">17,807</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total investments </div></td> <td> </td> <td align="left">$</td> <td align="right">77,227</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">579,347</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">656,574</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="60%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td>years ended June 30 (in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net income (loss) </div></td> <td> </td> <td align="left">$</td> <td align="right">232,277</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">48,202</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(118,631</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unrealized gain (loss) on derivatives designated and qualified as cash flow hedges, net of income tax expense (benefit) of $0.4 million, $(0.6) million and $(1.9) million, respectively </div></td> <td> </td> <td> </td> <td align="right">642</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(936</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,006</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Reclassification of unrealized (gain) loss on expired derivatives designated and qualified as cash flow hedges, net of income tax expense (benefit) of $0.4 million, $0.9 million and $(3.3) million, respectively </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(679</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,482</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">5,290</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unrecognized net pension and other postretirement benefit gains (losses), net of income tax expense (benefit) of $15.1 million, $(14.1) million and $0.6 million, respectively </div></td> <td> </td> <td> </td> <td align="right">28,087</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(17,397</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(14,283</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Reclassification of net pension and other postretirement benefit losses, net of income tax benefit of $4.4 million, $0.9 million and $0.5 million, respectively </div></td> <td> </td> <td> </td> <td align="right">7,131</td> <td> </td> <td> </td> <td> </td> <td align="right">2,975</td> <td> </td> <td> </td> <td> </td> <td align="right">1,496</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign currency translation adjustments, net of income tax expense (benefit) of $75.0 million, $(41.5) million and $(73.5) million, respectively </div></td> <td> </td> <td> </td> <td align="right">122,358</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(68,837</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(122,044</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total comprehensive income (loss), net of tax </div></td> <td> </td> <td> </td> <td align="right">389,816</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(37,475</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(251,178</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Comprehensive income (loss) attributable to noncontrolling interests </div></td> <td> </td> <td> </td> <td align="right">4,779</td> <td> </td> <td> </td> <td> </td> <td align="right">606</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,046</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Comprehensive income (loss) attributable to Kennametal Shareowners </div></td> <td> </td> <td align="left">$</td> <td align="right">385,037</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(38,081</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(250,132</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="60%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">2011</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Pre-tax</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Tax</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">After-tax</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unrealized loss on derivatives designated and qualified as cash flow hedges </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(3,227</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">1,331</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,896</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unrecognized net actuarial losses </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(71,262</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">23,003</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(48,259</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unrecognized net prior service credit </div></td> <td> </td> <td> </td> <td align="right">2,252</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(963</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1,289</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unrecognized transition obligation </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,203</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(95</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,298</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign currency translation adjustments </div></td> <td> </td> <td> </td> <td align="right">161,451</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(28,758</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">132,693</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total accumulated other comprehensive income </div></td> <td> </td> <td align="left">$</td> <td align="right">88,011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(5,482</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">82,529</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="60%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td nowrap="nowrap" align="left">2010</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Pre-tax</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Tax</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">After-tax</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unrealized loss on derivatives designated and qualified as cash flow hedges </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(2,998</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">1,139</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,859</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unrecognized net actuarial losses </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(122,442</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">38,629</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(83,813</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unrecognized net prior service credit </div></td> <td> </td> <td> </td> <td align="right">2,534</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(962</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1,572</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unrecognized transition obligation </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,120</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(127</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,247</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign currency translation adjustments </div></td> <td> </td> <td> </td> <td align="right">19,913</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(7,347</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">12,566</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total accumulated other comprehensive loss </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(104,113</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">31,332</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(72,781</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>

<div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="64%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Risk-free interest rate </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">1.4</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">2.3</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">3.0</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Expected life (years) <sup style="font-size: 85%; vertical-align: text-top">(2)</sup> </div></td> <td> </td> <td> </td> <td align="right">4.5</td> <td> </td> <td> </td> <td> </td> <td align="right">4.5</td> <td> </td> <td> </td> <td> </td> <td align="right">4.5</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Expected volatility <sup style="font-size: 85%; vertical-align: text-top">(3)</sup> </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">47.0</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">44.0</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">27.7</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Expected dividend yield </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">2.0</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">1.8</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">1.3</td> <td nowrap="nowrap">%</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 0pt; width: 18%; border-top: 0px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96%"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(2)</td> <td> </td> <td>Expected life is derived from historical experience.</td> </tr> <tr style="font-size: 3pt"> <td> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(3)</td> <td> </td> <td>Expected volatility is based on the implied historical volatility of our stock.</td> </tr> </table> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Weighted</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Weighted</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Average</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Aggregate</td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Average</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Remaining</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Intrinsic value</td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Options</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Exercise Price</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Life (years)</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">(in thousands)</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Options outstanding, June 30, 2010 </div></td> <td> </td> <td> </td> <td align="right">3,582,075</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">25.59</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Granted </div></td> <td> </td> <td> </td> <td align="right">559,987</td> <td> </td> <td> </td> <td> </td> <td align="right">27.30</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Exercised </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(646,567</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">22.25</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Lapsed and forfeited </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(107,492</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">26.05</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Options outstanding, June 30, 2011 </div></td> <td> </td> <td> </td> <td align="right">3,388,003</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">26.50</td> <td> </td> <td> </td> <td> </td> <td align="right">6.0</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">53,216</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Options vested and expected to vest, June 30, 2011 </div></td> <td> </td> <td> </td> <td align="right">3,299,431</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">26.54</td> <td> </td> <td> </td> <td> </td> <td align="right">5.9</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">51,706</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Options exercisable, June 30, 2011 </div></td> <td> </td> <td> </td> <td align="right">1,948,442</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">26.85</td> <td> </td> <td> </td> <td> </td> <td align="right">4.6</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">29,937</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Weighted</td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Average Fair</td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Shares</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Value</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unvested restricted stock awards, June 30, 2010 </div></td> <td> </td> <td> </td> <td align="right">198,701</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">32.71</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Vested </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(105,847</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">32.56</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Forfeited </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,539</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">33.00</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unvested restricted stock awards, June 30, 2011 </div></td> <td> </td> <td> </td> <td align="right">89,315</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">32.90</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Performance</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Performance</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Vesting</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Time Vesting</td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Vesting</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Weighted</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Time Vesting</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Weighted</td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Stock</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Average Fair</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Stock</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Average Fair</td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Units</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Value</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Units</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Value</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unvested performance vesting and time vesting restricted stock units, June 30, 2010 </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">546,713</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">24.29</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Granted </div></td> <td> </td> <td> </td> <td align="right">134,807</td> <td> </td> <td> </td> <td> </td> <td align="right">26.89</td> <td> </td> <td> </td> <td> </td> <td align="right">526,153</td> <td> </td> <td> </td> <td> </td> <td align="right">26.95</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Vested </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(84,784</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">23.53</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Forfeited </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(18,439</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">26.89</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(82,000</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">25.47</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unvested performance vesting and time vesting restricted stock units, June 30, 2011 </div></td> <td> </td> <td> </td> <td align="right">116,368</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">26.89</td> <td> </td> <td> </td> <td> </td> <td align="right">906,082</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">25.81</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Weighted</td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Stock</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Average Fair</td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Units</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Value</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unvested EPS performance-based restricted stock units, June 30, 2010 </div></td> <td> </td> <td> </td> <td align="right">502,371</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">35.54</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Forfeited </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(70,582</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">37.45</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unvested EPS performance-based restricted stock units, June 30, 2011 </div></td> <td> </td> <td> </td> <td align="right">431,789</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">35.23</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Weighted</td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Stock</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Average Fair</td> <td> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Units</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Value</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unvested TSR performance-based restricted stock units, June 30, 2010 </div></td> <td> </td> <td> </td> <td align="right">270,501</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">8.35</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Forfeited </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(38,004</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">9.20</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unvested TSR performance-based restricted stock units, June 30, 2011 </div></td> <td> </td> <td> </td> <td align="right">232,497</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">8.21</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>   <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="70%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">External sales: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Industrial </div></td> <td> </td> <td align="left">$  </td> <td align="right">1,528,672</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">1,166,793</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">1,277,981</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Infrastructure </div></td> <td> </td> <td> </td> <td align="right">874,821</td> <td> </td> <td> </td> <td> </td> <td align="right">717,274</td> <td> </td> <td> </td> <td> </td> <td align="right">721,878</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total external sales </div></td> <td> </td> <td align="left">$  </td> <td align="right">2,403,493</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">1,884,067</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">1,999,859</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="font size: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Operating income (loss): </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Industrial </div></td> <td> </td> <td align="left">$  </td> <td align="right">209,663</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">31,210</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(115,083</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Infrastructure </div></td> <td> </td> <td> </td> <td align="right">121,733</td> <td> </td> <td> </td> <td> </td> <td align="right">79,899</td> <td> </td> <td> </td> <td> </td> <td align="right">19,768</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Corporate </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(9,723</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(17,881</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(4,503</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total operating income </div></td> <td> </td> <td align="left">$  </td> <td align="right">321,673</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">93,228</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(99,818</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="font size: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest expense </div></td> <td> </td> <td align="left">$  </td> <td align="right">22,760</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">25,203</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">27,244</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Other expense (income), net </div></td> <td> </td> <td> </td> <td align="right">2,780</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(8,577</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(14,566</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Income (loss) from continuing operations before income taxes </div></td> <td> </td> <td align="left">$  </td> <td align="right">296,133</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">76,602</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(112,496</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="font size: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Depreciation and amortization </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Industrial </div></td> <td> </td> <td align="left">$  </td> <td align="right">68,000</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">70,383</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">71,718</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Infrastructure </div></td> <td> </td> <td> </td> <td align="right">25,471</td> <td> </td> <td> </td> <td> </td> <td align="right">26,046</td> <td> </td> <td> </td> <td> </td> <td align="right">24,663</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total depreciation and amortization </div></td> <td> </td> <td align="left">$  </td> <td align="right">93,471</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">96,429</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">96,381</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="font size: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Equity income: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Industrial </div></td> <td> </td> <td align="left">$  </td> <td align="right">229</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">107</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Infrastructure </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total equity income </div></td> <td> </td> <td align="left">$  </td> <td align="right">229</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">107</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="font size: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total assets: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Industrial </div></td> <td> </td> <td align="left">$  </td> <td align="right">1,531,409</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">1,310,635</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">1,386,324</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Infrastructure </div></td> <td> </td> <td> </td> <td align="right">785,718</td> <td> </td> <td> </td> <td> </td> <td align="right">682,169</td> <td> </td> <td> </td> <td> </td> <td align="right">672,287</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 0px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Corporate </div></td> <td> </td> <td> </td> <td align="right">437,342</td> <td> </td> <td> </td> <td> </td> <td align="right">275,019</td> <td> </td> <td> </td> <td> </td> <td align="right">288,363</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total assets </div></td> <td> </td> <td align="left">$  </td> <td align="right">2,754,469</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">2,267,823</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">2,346,974</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="font size: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Capital expenditures: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Industrial </div></td> <td> </td> <td align="left">$  </td> <td align="right">48,518</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">31,609</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">78,841</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Infrastructure </div></td> <td> </td> <td> </td> <td align="right">26,411</td> <td> </td> <td> </td> <td> </td> <td align="right">11,017</td> <td> </td> <td> </td> <td> </td> <td align="right">26,001</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 0px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Corporate </div></td> <td> </td> <td> </td> <td align="right">8,513</td> <td> </td> <td> </td> <td> </td> <td align="right">14,053</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total capital expenditures </div></td> <td> </td> <td align="left">$  </td> <td align="right">83,442</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">56,679</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">104,842</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="font size: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Investments in affiliated companies: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Industrial </div></td> <td> </td> <td align="left">$  </td> <td align="right">829</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">748</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">635</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Infrastructure </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">1,503</td> <td> </td> <td> </td> <td> </td> <td align="right">1,503</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total investments in affiliated companies </div></td> <td> </td> <td align="left">$  </td> <td align="right">829</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">2,251</td> <td> </td> <td> </td> <td align="left">$  </td> <td align="right">2,138</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>

<div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="60%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td nowrap="nowrap" align="left">(in thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">External sales: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">United States </div></td> <td> </td> <td align="left">$</td> <td align="right">1,041,427</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">839,168</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">907,967</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Germany </div></td> <td> </td> <td> </td> <td align="right">398,532</td> <td> </td> <td> </td> <td> </td> <td align="right">313,929</td> <td> </td> <td> </td> <td> </td> <td align="right">360,560</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Asia </div></td> <td> </td> <td> </td> <td align="right">441,397</td> <td> </td> <td> </td> <td> </td> <td align="right">311,616</td> <td> </td> <td> </td> <td> </td> <td align="right">266,676</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">United Kingdom </div></td> <td> </td> <td> </td> <td align="right">63,466</td> <td> </td> <td> </td> <td> </td> <td align="right">52,145</td> <td> </td> <td> </td> <td> </td> <td align="right">59,749</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Canada </div></td> <td> </td> <td> </td> <td align="right">59,743</td> <td> </td> <td> </td> <td> </td> <td align="right">44,538</td> <td> </td> <td> </td> <td> </td> <td align="right">47,348</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">398,928</td> <td> </td> <td> </td> <td> </td> <td align="right">322,671</td> <td> </td> <td> </td> <td> </td> <td align="right">357,559</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total external sales </div></td> <td> </td> <td align="left">$</td> <td align="right">2,403,493</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,884,067</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,999,859</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total assets: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">United States </div></td> <td> </td> <td align="left">$</td> <td align="right">1,165,705</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,091,510</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,153,109</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Germany </div></td> <td> </td> <td> </td> <td align="right">472,665</td> <td> </td> <td> </td> <td> </td> <td align="right">333,917</td> <td> </td> <td> </td> <td> </td> <td align="right">371,394</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Asia </div></td> <td> </td> <td> </td> <td align="right">440,535</td> <td> </td> <td> </td> <td> </td> <td align="right">330,282</td> <td> </td> <td> </td> <td> </td> <td align="right">302,355</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">United Kingdom </div></td> <td> </td> <td> </td> <td align="right">67,549</td> <td> </td> <td> </td> <td> </td> <td align="right">35,964</td> <td> </td> <td> </td> <td> </td> <td align="right">41,233</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Canada </div></td> <td> </td> <td> </td> <td align="right">40,421</td> <td> </td> <td> </td> <td> </td> <td align="right">29,025</td> <td> </td> <td> </td> <td> </td> <td align="right">28,055</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">567,594</td> <td> </td> <td> </td> <td> </td> <td align="right">447,125</td> <td> </td> <td> </td> <td> </td> <td align="right">450,828</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total assets: </div></td> <td> </td> <td align="left">$</td> <td align="right">2,754,469</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">2,267,823</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">2,346,974</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div> </div>

<div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt " valign="bottom"> <td nowrap="nowrap" align="left">For the quarter ended (in thousands, except per share data)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">September 30</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">December 31</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">March 31</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">June 30</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>2011</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Sales </div></td> <td> </td> <td align="left">$</td> <td align="right">529,158</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">565,768</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">614,830</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">693,737</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Gross profit </div></td> <td> </td> <td> </td> <td align="right">188,740</td> <td> </td> <td> </td> <td> </td> <td align="right">200,025</td> <td> </td> <td> </td> <td> </td> <td align="right">229,981</td> <td> </td> <td> </td> <td> </td> <td align="right">265,645</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Income from continuing operations attributable to Kennametal <sup style="font-size: 85%; vertical-align: text-top">(4)</sup> </div></td> <td> </td> <td> </td> <td align="right">34,921</td> <td> </td> <td> </td> <td> </td> <td align="right">43,469</td> <td> </td> <td> </td> <td> </td> <td align="right">64,683</td> <td> </td> <td> </td> <td> </td> <td align="right">86,655</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net income attributable to Kennametal <sup style="font-size: 85%; vertical-align: text-top">(4)</sup> </div></td> <td> </td> <td> </td> <td align="right">34,921</td> <td> </td> <td> </td> <td> </td> <td align="right">43,469</td> <td> </td> <td> </td> <td> </td> <td align="right">64,683</td> <td> </td> <td> </td> <td> </td> <td align="right">86,655</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Basic earnings per share attributable to Kennametal <sup style="font-size: 85%; vertical-align: text-top">(5)</sup> Continuing operations </div></td> <td> </td> <td> </td> <td align="right">0.43</td> <td> </td> <td> </td> <td> </td> <td align="right">0.53</td> <td> </td> <td> </td> <td> </td> <td align="right">0.79</td> <td> </td> <td> </td> <td> </td> <td align="right">1.06</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Net income </div></td> <td> </td> <td> </td> <td align="right">0.43</td> <td> </td> <td> </td> <td> </td> <td align="right">0.53</td> <td> </td> <td> </td> <td> </td> <td align="right">0.79</td> <td> </td> <td> </td> <td> </td> <td align="right">1.06</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Diluted earnings per share attributable to Kennametal <sup style="font-size: 85%; vertical-align: text-top">(5)</sup> Continuing operations </div></td> <td> </td> <td> </td> <td align="right">0.42</td> <td> </td> <td> </td> <td> </td> <td align="right">0.52</td> <td> </td> <td> </td> <td> </td> <td align="right">0.77</td> <td> </td> <td> </td> <td> </td> <td align="right">1.04</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Net income </div></td> <td> </td> <td> </td> <td align="right">0.42</td> <td> </td> <td> </td> <td> </td> <td align="right">0.52</td> <td> </td> <td> </td> <td> </td> <td align="right">0.77</td> <td> </td> <td> </td> <td> </td> <td align="right">1.04</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"><b>2010</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Sales </div></td> <td> </td> <td align="left">$</td> <td align="right">409,395</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">442,865</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">493,165</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">538,642</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Gross profit </div></td> <td> </td> <td> </td> <td align="right">117,801</td> <td> </td> <td> </td> <td> </td> <td align="right">140,088</td> <td> </td> <td> </td> <td> </td> <td align="right">170,324</td> <td> </td> <td> </td> <td> </td> <td align="right">199,515</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">(Loss) income from continuing operations attributable to Kennametal <sup style="font-size: 85%; vertical-align: text-top">(4)</sup> </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(8,450</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">6,023</td> <td> </td> <td> </td> <td> </td> <td align="right">9,685</td> <td> </td> <td> </td> <td> </td> <td align="right">40,584</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Net (loss) income attributable to Kennametal <sup style="font-size: 85%; vertical-align: text-top">(4)</sup> </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(9,817</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">5,967</td> <td> </td> <td> </td> <td> </td> <td align="right">9,685</td> <td> </td> <td> </td> <td> </td> <td align="right">40,584</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Basic (loss) earnings per share attributable to Kennametal <sup style="font-size: 85%; vertical-align: text-top">(5)</sup> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Continuing operations </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(0.10</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">0.07</td> <td> </td> <td> </td> <td> </td> <td align="right">0.12</td> <td> </td> <td> </td> <td> </td> <td align="right">0.50</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Net (loss) income </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(0.12</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">0.07</td> <td> </td> <td> </td> <td> </td> <td align="right">0.12</td> <td> </td> <td> </td> <td> </td> <td align="right">0.50</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Diluted (loss) earnings per share attributable to Kennametal <sup style="font-size: 85%; vertical-align: text-top">(5)</sup> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Continuing operations </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(0.10</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">0.07</td> <td> </td> <td> </td> <td> </td> <td align="right">0.12</td> <td> </td> <td> </td> <td> </td> <td align="right">0.49</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Net (loss) income </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(0.12</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">0.07</td> <td> </td> <td> </td> <td> </td> <td align="right">0.12</td> <td> </td> <td> </td> <td> </td> <td align="right">0.49</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 0pt; width: 18%; border-top: 0px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt; text-align: left"> <tr> <td width="1%"></td> <td width="1%"></td> <td width="96%"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(4)</td> <td> </td> <td>Income from continuing operations and net income attributable to Kennametal for the quarter ended June 30 and March 31, 2011 and December 31 and September 30, 2010, includes restructuring charges of $4.9 million, $1.0 million, $3.4 million and $3.3 million, respectively. Income from continuing operations and net income attributable to Kennametal for the quarter ended June 30 and March 31, 2010, includes restructuring charges of $12.0 million and $20.7 million, respectively. Income (loss) from continuing operations and net income (loss) attributable to Kennametal for the quarter ended December 31 and September 30, 2009, includes restructuring charges of $3.3 million and $7.8 million, respectively.</td> </tr> <tr style="font-size: 1pt"> <td> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(5)</td> <td> </td> <td>Earnings per share amounts attributable to Kennametal for each quarter are computed using the weighted average number of shares outstanding during the quarter. Earnings per share amounts attributable to Kennametal for the full year are computed using the weighted average number of shares outstanding during the year. Thus, the sum of the four quarters’ earnings per share attributable to Kennametal does not always equal the full-year earnings per share attributable to Kennametal.</td> </tr> </table> </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div style="display: none"></div> <div style="display: none">VALUATION AND QUALIFYING ACCOUNTS AND RESERVES </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES</b> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="23%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Charged</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Charged to</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">(In thousands)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Balance at</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">(Recoveries)</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Other</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Deductions</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">For the year ended</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Beginning</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">to Costs and</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Comprehensive</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Other</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">from</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Balance at</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">June 30</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">of Year</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Expenses</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Income</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Recoveries</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Adjustments</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">Reserves</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">End of Year</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="29" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>2011</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Allowance for doubtful accounts </div></td> <td> </td> <td align="left">$</td> <td align="right">24,789</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">518</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">966</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">1,993</td> <td nowrap="nowrap"><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">7,308</td> <td nowrap="nowrap"><sup style="font-size: 85%; vertical-align: text-top">(3)</sup></td> <td> </td> <td align="left">$</td> <td align="right">20,958</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Reserve for obsolete inventory </div></td> <td> </td> <td> </td> <td align="right">68,270</td> <td> </td> <td> </td> <td> </td> <td align="right">4,971</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">4,525</td> <td nowrap="nowrap"><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">22,483</td> <td nowrap="nowrap"><sup style="font-size: 85%; vertical-align: text-top">(4)</sup></td> <td> </td> <td> </td> <td align="right">55,283</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Deferred tax asset valuation allowance </div></td> <td> </td> <td> </td> <td align="right">47,987</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(27,313</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">5,491</td> <td nowrap="nowrap"><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">503</td> <td nowrap="nowrap"><sup style="font-size: 85%; vertical-align: text-top">(5)</sup></td> <td> </td> <td> </td> <td align="right">25,662</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="29" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>2010</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Allowance for doubtful accounts </div></td> <td> </td> <td align="left">$</td> <td align="right">25,228</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">4,163</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,181</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,055</td> <td nowrap="nowrap">)<sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">4,728</td> <td nowrap="nowrap"><sup style="font-size: 85%; vertical-align: text-top">(3)</sup></td> <td> </td> <td align="left">$</td> <td align="right">24,789</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Reserve for obsolete inventory </div></td> <td> </td> <td> </td> <td align="right">61,123</td> <td> </td> <td> </td> <td> </td> <td align="right">19,580</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">2,854</td> <td nowrap="nowrap"><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">15,287</td> <td nowrap="nowrap"><sup style="font-size: 85%; vertical-align: text-top">(4)</sup></td> <td> </td> <td> </td> <td align="right">68,270</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Deferred tax asset valuation allowance </div></td> <td> </td> <td> </td> <td align="right">48,206</td> <td> </td> <td> </td> <td> </td> <td align="right">5,035</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,715</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,539</td> <td nowrap="nowrap">)<sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">47,987</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="29" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>2009</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Allowance for doubtful accounts </div></td> <td> </td> <td align="left">$</td> <td align="right">18,473</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">9,597</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">856</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">1,566</td> <td nowrap="nowrap"><sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">5,264</td> <td nowrap="nowrap"><sup style="font-size: 85%; vertical-align: text-top">(3)</sup></td> <td> </td> <td align="left">$</td> <td align="right">25,228</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Reserve for obsolete inventory </div></td> <td> </td> <td> </td> <td align="right">61,470</td> <td> </td> <td> </td> <td> </td> <td align="right">22,730</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(14,164</td> <td nowrap="nowrap">)<sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">8,913</td> <td nowrap="nowrap"><sup style="font-size: 85%; vertical-align: text-top">(4)</sup></td> <td> </td> <td> </td> <td align="right">61,123</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Deferred tax asset valuation allowance </div></td> <td> </td> <td> </td> <td align="right">46,650</td> <td> </td> <td> </td> <td> </td> <td align="right">2,490</td> <td> </td> <td> </td> <td> </td> <td align="right">4,572</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(5,506</td> <td nowrap="nowrap">)<sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">48,206</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="29" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt; text-align: left"> <tr> <td width="3%"> </td> <td width="1%"> </td> <td width="96%"> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(1)</td> <td> </td> <td>Represents foreign currency translation adjustment.</td> </tr> <tr style="font-size: 3pt"> <td> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(2)</td> <td> </td> <td>Represents foreign currency translation adjustment and $0.2 million of reserves acquired through business combinations.</td> </tr> <tr style="font-size: 3pt"> <td> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(3)</td> <td> </td> <td>Represents uncollected accounts charged against the allowance.</td> </tr> <tr style="font-size: 3pt"> <td> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(4)</td> <td> </td> <td>Represents scrapped inventory and other charges against the reserve.</td> </tr> <tr style="font-size: 3pt"> <td> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(5)</td> <td> </td> <td>Represents a forfeited net operating loss deduction.</td> </tr> </table> </div>

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134807

526153

26.95

26.89

270501

546713

198701

502371

906082

232497

431789

116368

89315

8.35

32.71

24.29

35.54

25.81

32.90

26.89

8.21

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3388003

25.59

26.5

51706000

3299431

26.54

Based on the Company’s total shareholder return (TSR), which governs 35 percent of the awarded restricted stock units, and cumulative adjusted earnings per share (EPS), which governs 65 percent of the awarded restricted stock units

76858000

73232000

81903000

81129000

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