Accounting for $7.

5 billion Upper DECS Equity Units

Announced on November 26, 2007

Balance Sheet Impact

Upon Closing of Transaction:

Cash +$7,500 million Proceeds from transaction

Long-term Debt +$7,500 million Principal amount of Equity Units

Other Liabilities +$888 million Present value of forward purchase contract payments (1)
Additional Paid in Capital -$888 million Present value of forward purchase contract payments (1)

Present Value of Forward Purchase Contract Payments:

` The Other Liabilities are reduced as purchase contract payments are made in cash. These payments
average 4.4% annually and are made until the final conversion date.
` The 4.4% purchase contract payment rate includes an interest component, which averages 0.4%
annually over the life of the contracts, and is recorded as interest expense in the income statement.

Income Statement Impact (2)

Annual interest expense on Trust Preferred Average of 6.6% Tax deductible

Annual interest expense due to accretion

of the Other Liabilities (3) Average of 0.4% Not tax deductible

Calculation of Impact on Average Diluted Shares Outstanding

Prior to Settlement of Forward Purchase Contracts
` Step 1: Assume Equity Units convert to common shares at forward purchase contract terms based on
the average common share price during the last 20 trading days of the quarter.
` Step 2: Under the Treasury Stock Method of calculating earnings per share, it is assumed there is a
repurchase of $7.5 billion of common shares at the average common share price during the quarter.
` The impact on the average diluted shares outstanding prior to settlements of forward purchase
contracts is the net share increase resulting from the assumed conversion and assumed repurchase.
` In the event that the shares assumed to be repurchased (Step 2) exceed the number of shares under
the assumed conversion (Step 1), there is no adjustment to average diluted shares outstanding.

(1) Present value at an average rate of 6.6%.

(2) Does not reflect impact of certain fees related to the transaction.
(3) Interest expense reflects accretion of the present value of the contract payments to actual future payments.

FOR A MORE DETAILED DESCRIPTION OF THE UPPER DECS EQUITY UNITS SEE OUR FORM 8-K FILED ON
NOVEMBER 27, 2007