Back to Contents

|  |
|--|

----

Back to Contents

| **A              P P L E R A  C O R P O R A T I O N****co n s i s t s o f  t h e  f o l l o w i n g  b u s i n e s s e s :****Applied Biosystems**Applied Biosystems serves the life science industry and research community by developing and marketing instrument-based systems, consumables, software, and services. Customers use these tools to analyze nucleic acids (DNA and RNA), small molecules, and proteins to make scientific discoveries, develop new pharmaceuticals, and conduct standardized testing.**Celera Genomics**Celera Genomics is discovering and developing targeted therapeutics for cancer, autoimmune and inflammatory diseases. Celera is leveraging proteomics, bioinformatics, and genomics to identify and validate drug targets and to discover and develop small molecule therapeutics. It intends to advance therapeutic antibody and other selected programs through strategic collaborations.**Celera Diagnostics**Celera Diagnostics, *ajoint venture between Applied Biosystems and Celera Genomics,*focuses on discoveringmarkers for disease and configuring these into new gene and protein-based diagnostictests to predict, characterize, monitor and select therapy for cardiovasculardisease, auto-immunity, central nervous system disorders, liver disease, andcancer.Applera Corporation has two classes of common stock. Applera Corporation — Applied Biosystems Group Common Stock is listed on the New York Stock Exchange under the ticker symbol “ABI” and is intended to reflect the relative performance of the Applied Biosystems group. Applera — Celera Genomics Group Common Stock is listed on the New York Stock Exchange under the ticker sym­bol “CRA” and is intended to reflect the relative performance of the Celera Genomics group. Holders of Applera-Applied Biosystems stock and Applera-Celera Genomics stock are stockholders of a single company, Applera Corporation. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Back to Contents

| **L    E T T E R **t    o  S t o c k h o l d e r s    **                    D E         A R       S T O C K H O L D E R S ,** From biosecurity         to cancer diagnosis, the molecular analysis technologies in which Applera         is a global leader are expanding beyond their traditional applications in         biological research. This expansion, a trend for which we have been planning         for several years, is bringing new products and insights to bear on some         of society’s most vexing problems, while providing new avenues to increase         value for Applera stockholders.In this annual report, we highlight ways in which Applera technologies are helping to advance science and touch lives. Consider the following examples from fiscal 2005:•   Celera Genomics used its powerful proteomics discovery platform to discover and validate additional novel targets for potential cancer drugs, and moved its lead oncology drug candidate into Phase I clinical trials.•   Celera Diagnostics published promising findings from its genetic discoveries program in cardiovascular disease, progressive liver disease, autoimmune disease, and breast cancer. These discoveries, including genetic risk for disease or likelihood of drug response, may help in the development of new targeted diagnostics and therapeutics.•   Applied         Biosystems provided customers with innovative products, including reagents         employed by the United States Postal Service to detect weapons-grade         anthrax spores and four new mass spectrometers introduced to proteomics         and pharmaceutical customers for facilitating the evaluation of proteins         and drug metabolism and toxicity.Discoveries     enabled by Applied Biosystems and being made at Celera Genomics and Celera     Diagnostics could lead to “smarter” methods of preventing, diagnosing,     monitoring and treating major diseases. Central to our work is our vision     of Targeted     Medicine, in which diagnostic tests are paired with targeted therapeutics     to improve patient outcomes – an approach based on our growing understanding     of human biology and the relationship between human genetic variation and     disease. In another example of how we are moving Applera technologies beyond     the research lab, Applied Biosystems has formed an Applied Markets division     to focus dedicated resources on emerging opportunities such as biosecurity     and quality and safety testing, in addition to forensic DNA analysis, an     application of DNA sequencing technology where Applied Biosystems is already     the market leader. We believe the expansion of our technologies to new markets     is key to Applera’s     ongoing leadership and success. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

   

----

Back to Contents

|                     C E  L E R A  G E N O M I C S  is  creating value by advancing its proteomics and small molecule drug discovery  and  development programs. The proteomics-based target discovery program has been  highly  productive.  Initially focused  on identifying  cell surface proteins associated with cancer, this platform is now also being  used to discover proteins that are shed or secreted from tumor cells. These  shed or secreted proteins are being evaluated as another source of targets  for cancer  drugs that could be developed internally or through new external alliances.  They could also enable the development of diagnostic and pharmacogenomic markers.  Current proteomics-based collaborations with Abbott Laboratories and Seattle  Genetics are aimed at creating new targeted cancer therapeutics from validated  targets supplied by Celera Genomics. Seattle Genetics selected one, and Abbott  selected two Celera-identified antigen targets for further investigation. In  addition, Genentech initiated an agreement to develop antibody, protein or  small molecule cancer drugs against therapeutic targets licensed from Celera  Genomics. These                          therapeutic alliances, along with a collaboration with                          General Electric to develop diagnostic imaging agents,                          serve to diversify risk and broaden opportunities        for potential downstream value for Celera Genomics.        In the small molecule area, Celera Genomics has recently initiated Phase        I clinical trials for its novel HDAC inhibitor. This achievement points        to the        maturation        of Celera’s small molecule capability to the point where new opportunities        for partnering and value creation are under consideration. Celera Genomics’ pipeline        includes compounds in preclinical development for the treatment of allergic        asthma, psoriasis, rheumatoid arthritis, thrombotic disorders, and for        a number of cancer targets. In addition, Celera Genomics is working closely        with Celera        Diagnostics to advance programs in psoriasis and rheumatoid arthritis        and to couple its drug candidates with diagnostic assays that could predict        patient        outcome.        By the end of fiscal 2005, Celera Genomics substantially discontinued        its Online/Information business in order to concentrate on drug discovery        and        development. With cash resources and short-term securities of $668 million        as Celera Genomics began fiscal 2006, it intends to focus its efforts        on its most promising opportunities while carefully managing its use        of cash        by seeking partners for selected assets. Celera Genomics has the staying        power to leverage its most promising assets and create additional value        for stockholders. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Back to Contents

|                     C EL E R A   D I A G N O S T I C S  ismoving its discoveries toward the market while continuing its positive businessperformance. With its collaborators and clinical partners, in fiscal 2005 CeleraDiagnosticsconducted several medical utility studies demonstrating the potential usefulnessof itsnovel genetic markers to predict disease risk or progression and response totherapy. Findings in probable risks for myocardial infarction and breast cancermetastasis are particularly promising and are being prepared by collaboratorsfor publication. At the same time, Celera Diagnostics is transferring technologyrelated to these markers to its clinical laboratory partners for potential commercialization.In addition, Celera Diagnostics scientists have identified markers that may helppinpoint individuals most likely to benefit from statin therapy. Discoveriessuch as thesecould potentially benefit countless patients.In fiscal 2005, Celera Diagnostics continued to report strong sales growth anda trend toward profitability. Total end-user sales for all products sold throughits strategic alliance with Abbott Laboratories increased 34 percent to $61.7million. This increase was due to increased sales of analyte specific reagents(ASRs) for hepatitis C virus genotyping and viral load, HLA products, and ourFDA-cleared ViroSeqTM HIV-1 Genotyping System.Importantly, net losses at Celera Diagnostics declined to $29.9 million in fiscal2005 from $42 million in fiscal2004, while cash used in the business dropped to $32.1 million from $43.3 million.In fiscal 2006, Celera Diagnostics anticipates further increases in sales fromproducts offered through the Abbott alliance. New products are expected to includeanalyte specific reagents for detecting mutations that havebeen associated with Fragile X, the leading cause of mental retardation in children.Additionally, Abbott has recently introduced a new *in vitro* diagnosticsystem, the Abbott *m*2000TM system, developed with real-time PCR technologyfrom AppliedBiosystems.Infectiousdisease assays developed by Celera Diagnostics and Abbott that run on this novelsystem have received regulatory clearance in Europe. On pages 6 and 7, KathyOrdoñez, President of Celera Genomics and Celera Diagnostics, discussesthesebusinesses in greater detail.                    A PP L I E D   B I O S Y S T E M S   generatedearnings before interest and taxes of $283.3 million during fiscal 2005, a 24percent increase over the prior year. Higher profits and careful working capitalmanagement contributed to $334 million in operating cash flow. These resultswere achieved on a 3 percent increase in revenues. Cathy Burzik, president ofApplied Biosystems, comments in more detail on Applied Biosystems’ 2005performance, 2006 priorities, and strategies for growth on pages 12 and 13. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Back to Contents

| AppliedBiosystems and other providers of life science technology continue to face adynamic business environment that offers both challenges and opportunities. Academicresearchers are experiencing no-growth to low-growth budgets in the U.S., WesternEurope, and Japan, as governments confront other budget priorities. Conversely,U.S. funding related to biothreat detection and forensic DNA science is risingrapidly, as is demand, particularly outside the U.S., for more sensitive andfaster detection technologies for food safety and water quality testing. In thepharmaceutical industry, research and development spending, while increasingat single-digit rates, is constrained by slowing sales growth due to patent expirationsand a dearth of new drugs. On the other hand, there is increasing interest fromboth the academic and pharmaceutical sectors in what is known as medical sequencingor resequencing – an application aimed at identifying genetic variationpatterns relative to disease states, with the goal of better matching drugs toindividual genetic makeup. In support of this and other targeted medicine approaches,in 2004 the U.S. Food and Drug Administration published pharmacogenomic guidelinesfor use in drug development.The number-one goal for Applied Biosystems is to achieve stronger revenue growth, while increasing earnings at a commensurate or higher rate. To that end, the Group is making considerable progress implementing the following priority initiatives:•   Thenew divisional organizational structure adopted at the beginning of fiscal 2005is providing better transparency about market trends and opportunities, clearerresource allocation, and better accountability. Each of the four new divisionshas profit and loss responsibility and dedicated sales, R&D, manufacturingand marketing teams. A number of management appointments and changes were madein support of the new structure.•   TheR&D portfolio has been realigned with a mixture of near- and longer-terminvestments. A noteworthy change in fiscal 2005 was the integration of the Group’sMALDI TOF product line into the Applied Biosystems/MDS Sciex instruments jointventure with MDS Inc. The R&D alignment should improve efficiency and qualityand lead to lower reported R&Dspending as a percent of sales in fiscal 2006. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Back to Contents

| •    Increasingsales of consumable products for gene expression, genotyping and other molecular biology applicationsis a strategic priority, and the North American field sales and service organization is being expandedto support this initiative.•    Business    re-engineering programs new to Applied Biosystems are increasing operational    efficiency and quality. Process Excellence techniques such as lean manufacturing    and Six Sigma are eliminating unnecessary costs and process variability.The product commercialization process has been redesigned for faster cycle timeand a sharpened focus on customer and market needs.•    Applied    Biosystems will manage an expanded licensing program in core and real-timePCR reagents that should substantially mitigate the expiration of foundationalPCRpatentsin fiscal years 2005-2006. Agreement on such a licensing program was a key elementof the May 2005 settlement with Hoffmann-La Roche Ltd. resolving litigation andarbitration over the rights to and commercialization of core and real-time PCR.•    Beyond    actions to drive higher organic growth, Applied Biosystems is evaluatingexternal opportunities including collaborations and acquisitions to augment theGroup’s product portfolio and market presence. Applied Biosystems has manyassets to leverage via external initiatives, including the breadth and depthof its scientific knowledge, strong channel relationships, a respectedbrand, and a balance sheet with $756 million in cash and cash equivalents andzero debt at the start of fiscal 2006.    The accomplishments of the Applera businesses in fiscal 2005 accelerated    momentum toward our goals of expanding Applera technologies to new markets    and enabling and making discoveries to transform medicine, thereby creating    value for society and our stockholders. We have strengthened our scientific    assets, financial position, and management expertise, as well as our resolve    to continue to lead the way in realizing the promise of genomics and Targeted    Medicine. In closing, I would like to thank the Applera team around the world    for their vision, dedication, and support, which has been and will continue    to be key to our success. Tony L. WhiteChairman, President and Chief Executive OfficerApplera Corporation |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Back to Contents

| **I    N T E R V I E W  **w    i t h  K a t h y  O r d o ñ e z**CE L E R A  G E N O M I C S****Q**}   What competitive advantages does CeleraGenomics have in its proteomics discovery platform, and how do these contributevalue to Celera?A}    Ourindustrial-scale proteomics discovery platform employs techniques that allowfor higher throughput and efficiency compared to conventional methods. This plat­formhas allowed us to identify and measure the level of hundreds of proteins thatare over-expressed on the surface of cancer cells and not on normal cells. Thesecell surface proteins may represent promising targets for the development ofantibody or small molecule drugs. To date, we have initiated three internal oncologyresearch projects based on our proteomics findings and established three therapeuticalliances focused on converting our discoveries into new, targeted therapiesfor cancer. We believe these collaborations diversify our risk and increase ouropportunities for potential downstream value.**Q**}   Building on thisinitial work, what is next for Celera’s proteomics discoveryprogram?A}    Ourdiscovery work to date has focused on cancer indications with significant unmetneeds, including pancreatic, lung, colon, breast, kidney, and gastric cancer.These efforts continue to identify significant numbers of novel proteins as wemovefor­ward.Additionally, in the past year, we initiated a new program to identify proteinbiomarkers in serum or tissue that could have diagnostic as well as therapeuticutility. We are also studying the applicability of our proteomics platform fordiabetes and obesity.**Q**}   Howdoes your Phase I histone deacetylase (HDAC) inhibitor work as an anti-tumor compound, and whatcompetitive advantage does it have?A}    Ourown studies and published reports have shown that inhibition of HDAC en­zymescan reduce the proliferation of cancer cells and induce tumor cell death. Asan important step in designing our novel HDAC inhibitors, we published the firstthree-dimensional structure of an HDAC enzyme in July 2004. In April 2005, wepresented data showing significant anti-tumor activity of our lead HDAC inhibi­torcandidate in animal models of human cancers and reported the identification ofpotential biomarkers of efficacy.**Q**}   What    is the status of other compounds in your small molecule portfolio?A}    Our     other small-molecule compounds in preclinical development are in the areas    ofcancer, autoimmune disorders, and inflammation. Our most advanced preclinicalprograms are a back-up HDAC inhibitor and an inhibitor of the enzyme CathepsinS for treating psoriasis. Programs in lead optimization include a kinase inhibitorprogram that resulted from disease association studies in rheumatoid arthritis,two antiviral programs, a tryptase inhibitor program for treating allergic asthma,and a novel variant HDAC inhibitor, which may be more selective in its mechanismof action in targeting cancer. Now that our pipeline is more mature, we are exploringpartnering opportunities for several of these assets as a way to manage risk. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Back to Contents

| **CE L E R A  D I A G N O S T I C S****Q**} What is atthe core of Celera Diagnostics’ strategy for diagnostics?A}    We are pursuing three avenues of product development to create a new generation of diagnostic tests for improving the prediction, detection, monitoring and treatment of disease. First, we are conducting large-scale genetic discoveries programs to iden­tify and validate new markers associated with complex diseases for the development of new molecular diagnostic products. Second, we are developing new products based on existing markers, such as improved means for detecting Fragile X, expected to be introduced in the coming year. Third, we are evaluating the diagnostic poten­tial of markers emerging from Celera Genomics’ proteomics discovery program.
**Q**} How do you see the  new Abbott *m*2000TM system contributing to the molecular diagnostics  field?
A}    Clinicallaboratories are beginning to transition from traditional PCR-based tests toreal-time PCR tests that provide more sensitive, accurate and reproducible results.Developed by Celera Diagnostics and Abbott, the new Abbott *m*2000TM systemis a highlyautomat­ed,easy-to-use *in vitro* molecular diagnostic system that employs technology fromApplied Biosystems, the leader in real-time PCR. We already have testsfor use on this new system to monitor HIV-1 and HCV viral loads that recentlyreceived regulatory approval in Europe. We have plans to develop a broad rangeof other tests for use on this system. **Q**} What products werethe most significant contributors to Celera Diagnostics’ growth in fiscal2005 and why?A}    The largest contributors in fiscal 2005 were our new analyte specific reagents (ASRs) for the hepatitis C virus, for viral load and genotyping; our ASRs for cystic fibrosis, and our ViroSeqTM HIV-1 Genotyping System for determining drug resistance. All of these products are offered through our strategic alliance with Abbott.**Q**} Can you provide anexample of how Celera Genomics and Celera Diagnostics are collaborating to leverage their synergisticcapabilities?A}    Guided by their shared vision of Targeted Medicine, Celera Genomics and Celera Diagnostics are collaborating to explore both the diagnostic and therapeutic poten­tial of the markers emerging from their genetic and proteomic discovery programs. In the case of psoriasis, for example, scientists from both organizations are working to identify markers that can be used to predict disease predisposition and progres­sion, to monitor the efficacy of clinical trials, and to provide a targeted therapy that will treat the specific cause of the disease. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Back to Contents

| **A    D V A N C I N G  S C I E N C E****D                i s c o v e r i n g  N e w  D r u g  T a r g e t s**CeleraGenomics is applying its industrial-scale, high-throughput proteomics discoveryplatform to identify and validate novel targets for drug development, primarilyin cancer. Proprietary methods are employed to capture proteins that are overexpressedon the surface of tumor cells but not found on normal cells. These proteins arethen rapidly identified and quan­tified using powerful mass spectrometryand bioin­formatic capabilities. These differentially-expressed proteinsprovide important clues to the growth and survival of tumor cells, includingtheir ability to pro­liferate, metastasize and evade the body’s immunesystem defenses. Many of these molecular differences can be exploited as potentialtargets for antibody or small molecule drugs, or for diagnostic purposes. Todate, this platform has been used to identify hun­dredsof independent targets in pancreatic, lung, colon, breast, kidney, and gastric cancers.Of these, over 125 have been moved into the validation pipeline,and27 have been successfully validated based on further study of the role theseproteins play in the biology of the tumor cell. Programs to develop anti-cancerdrug candidates against a variety of these validated targets are now underwayat Celera Genomics as well as at its therapeutic collaborators. Going forward,use of the platform is expanding to additional cancer types as well as indicationsoutside oncology including metabolic diseases. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Back to Contents

| STEVEN        RUBEN, PH.D., VICE PRESIDENT OF PROTEIN THERAPEUTICS, AND SAMUEL BRODER,        M.D.,     CHIEF MEDICAL OFFICER,    HELP TO LEAD THE DISCOVERY PROCESS AT CELERA GENOMICS, WHICH IS FOCUSED ON    FINDING KEY PROTEIN DIFFERENCES BETWEEN TUMOR CELLS AND NORMAL CELLS. THESE    DISCOVERIES ARE ANALYZED BY A FLOW CYTOMETER, PICTURED HERE. COMMENTS DR. BRODER,*“Through    our identification of differentially expressed proteins in cancer, we are    pinpointing new targets for the    development of novel drugs and diagnostics that may help usto make important headway against this deadly disease.”* |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Back to Contents

| **T    O U C H I N G  L I V E S****U n r a v e l i n g  H e a r t  A t t a c k  R i s k**CeleraDiagnostics is advancing the concept of Targeted Medicine through its large-scalegenetic discoveries program focused on identifying genetic markers linked withcomplex diseases. In this ef­fort, scientists at Celera Diagnostics compare genotype and gene expression profilesin thousands of samples from healthy and diseased populations to identify andvali­datemarkers for the development of new molecular diagnostic products. These markersmay indicate the risk or presence of disease before symptoms appear, predictthe severity or expected rate of disease pro­gression, or demonstrate aresponse to drug therapy. They may also serve as potential drug targets. In thepast year, markers identified by Celera’s genetic discoveries programsin cardiovascular disease, breast cancer metastasis, autoimmune disease, andprogressive liver disease were evaluated in medical utility studies aimedat determining the potential clinical utility of various combinations of markers.Drawing on markers identified and validated from the cardiovascular disease studies,Celera Diagnostics is working to develop an assay to identify individuals witha genetic predisposition for heart attack, stroke and coronary artery disease,even in the absence of conventional risk factors. In a related program, CeleraDiagnostics and academic collaborators are evaluating another set of markersthat may identify individuals who would most benefit from cholesterol-loweringstatin therapy. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Back to Contents

| JOHN KANE, M.D., PH.D., PROFESSOR    OF MEDICINE AND BIOCHEMISTRY,    AND ASSOCIATE DIRECTOR OF THE CARDIOVASCULAR    RESEARCH INSTITUTE AT THE UNIVERSITY    OF CALIFORNIA, SAN FRANCISCO (UCSF),    IS A COLLABORATOR WITH CELERA DIAGNOSTICS    ON THE DISCOVERY AND EVALUATION OF NEW GENETIC MARKERS THAT MAY BE USEFUL IN PREDICTING A GENETIC RISK FOR    CARDIOVASCULAR DISEASE AND IN POINTING THE WAY TO NEW TREATMENTS. STATES     DR. KANE, *“The    power of the scientific dialogue between the scientists at Celera Diagnostics    and UCSF is driving discovery in major disease areas,    such as heart attack, stroke and coronary artery disease.”* |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Back to Contents

| **I    N T E R V I E W** w    i t h  C a t h y  B u r z i k**AP P L I E D  B I O S Y S T E M S**
**Q**}   What priorities did you set for fiscal 2005, your first year as president of Applied Biosystems, and what are your priorities in fiscal 2006?A}    Mypriorities for fiscal 2005 grew out of the extensive strategic and operationalreview that commenced during    the preceding fiscal year and had as its goal to identify opportunitiesforgreater growth and operational efficiency. I established five new programs, including:    1) Customers First, for reinforcing a customer-focused culture; 2) Innovation,    for developing next-generation technologies and identifying and funding newbusiness opportunities; 3) Flawless Execution, for enhancing our product planning,    product launch and other business processes using proven Process Excellenceprograms; for creating a more robust e-commerce and genomics data portal; andforexecuting    on key products in development; 4) Organizational Excellence, for driving    alignment of strategies and goals throughout our new divisional organizational    structure; and 5) Financial Performance, for meeting or exceeding our financial    targets. In fiscal 2006, these programs, as well as a number of new initiatives,    will play an essential role as we pursue our topmost objective – to    reignite revenue growth and build stockholder value.**Q**}   What is the strategy to increase revenue growth over the next several years?A}    Thesteps we are taking include investment to grow in the applied markets, molecularbiology consumables, real-time PCR and mass spectrometry. An exciting new growtharea is in clinical research leading to diagnostics, where our DNA analysis systemsare playing a critical role by enabling medical sequencing of specific genes.We are also exploring growth opportunities in new markets, such as cell biology,and geographical expansion into China and India. Additionally, to complementour efforts to spur organic growth we are exploring a number of collaborationand acquisition opportunities in existing and adjacent markets. (See productchart on the next page for product category revenue trends).**Q**}   Revenuesfrom DNA Sequencing peaked in fiscal 2003. What is the outlook for this productcategory?A}    Medicalsequencing, also called resequencing – the sequencing of specific genesin many samples to find the genetic basis of disease and individual drug response – aswell as a range of other genetic applications such as forensics, has fueled in­creaseddemand for low- to medium-throughput systems. In contrast, the large genome centersand core laboratories at universities and pharmaceutical companies generallynow have adequate capacity for their work after many purchased our highest-throughputGenetic Analyzers, the 3730 and 3730xl models, over the last three years. Goingforward, we will continue to create sequencing products for the low- to medium-throughputsegment of the market, develop additional applications for our installed baseof sequencers, and invest in new sequencing technologies that have potentialto deliver dramatic gains in price performance to both large and smaller labs.
Back to Contents
**Q**}   Which individual products performed bestin fiscal 2005?**A**}    Ourstrongest sales came from products in the functional genomics, applied mar­kets,and mass spectrometry categories. In addition to our 3130 line of low- to medium-throughputGenetic Analyzers, strong performers in functional genomics included our gold-standardReal-Time PCR Systems and TaqMan® assaysfor gene expression, SNP genotyping and applied markets applications. Mass spectrometrysales were led by our API 4000TM LC/MS/MS System used for small moleculestudies, followed by our 4000 Q TRAP® System, for both proteomics and smallmolecules. In applied markets, human identification products continued to growstrongly, and sales of biosecurity products contributed significantly to revenuesfor the first time.**Q**}   Whatfactors caused earnings to increase more rapidly than sales in fiscal 2005?**A**}    Earningsbefore interest and taxes increased 24 percent while revenues increased threepercent. Earnings rose due to the net effect of foreign currency, operationalefficiencies, an increase in gross margin, and gains from asset dispositionsand legal settlements. We realize that acceleration of revenue growth is keygoing forward and are taking measures to reach that goal.**Q**}   You have recruiteda number of new senior executives to Applied Biosystems. What are their backgrounds,and what skills and attributes are you promoting in the company?**A**}    We    have added new executives experienced in managing multi-product businesses    within large medical technology companies. These managers bring skills and    attributes that are essential to the success of our new divisional strategy    and structure, including an increased commercial orientation, strategic planning    expertise, a results-driven approach, and strong leadership	capabilities.**Q**}   Why have you decided    to invest more in sales of consumable products?**A**}    Webelieve consumable products – chemical reagents and other disposables usedin conjunction with our various instrument systems – represent an opportunitythat we have not fully exploited. Sales of consumables were up 12 percent infiscal 2005 compared to prior year. To support further growth in this revenuesource, we are increasing our sales and field support personnel in North America,putting in place consumables-oriented marketing programs and developing a newweb portal focused on making it easier to buy consumables from Applied Biosystems.**Q**}   How big an opportunity are the Applied Markets?**A**}    Currentlyestimated at $100 million or more, DNA forensics is an established and growingmarket in which Applied Biosystems has the leading position. Biosecurity andquality and safety testing represent large, barely-tapped opportunities for us.By establishing a dedicated Applied Markets division, we believe we now havethe organization to expand aggressively in these fields. In biosecurity, ourTaqMan® chemistryfor anthrax-detection, through a collaboration agreement with Cepheid Corporation,has been deployed by the U.S. Postal Service, while our Real-Time PCR and massspectrometry instruments are getting wider adoption in food, beverage and environmentaltesting and in pharmaceutical quality control. To read more about these opportunities,please see pages 16-17.
Back to Contents
**A    D V A N C I N G  S C I E N C E****U                      n d e r s t a n d i n g  B l i n d n e s s**Applied Biosystems technology is helping scientists make important discoveries that are beginning to fulfill the core promise of the human genome sequencing effort – that understanding the human genetic code, as well as individual variations in that code, is the first step in developing improved drugs and medical interventions that target the precise cause of disease. Research published in leading journals in March 2005 reported the discovery of a gene variant associated with age-related macular degeneration (AMD), the leading cause of legal blindness in the elderly. Using Applied Biosystems’ Real-TimePCR Systems, TaqMan assays, and Genetic Analyzers, researchers in five independentstudies at Yale, Duke-Vanderbilt, Columbia, the University of Texas Medical Center,and the University of Michigan identified variants of a gene that increase riskfor developing AMD. These researchers compared genetic data from patients athigh risk for developing AMD based on family history with data from patientswho did not have either AMD or a family history of AMD. All five independentstudies identified a commonly inherited variant of the same gene, called complementfactor H (CFH) – a discovery that may pave the way for early detection and better treatments for this disabling condition, which currently affects 15 million individuals in the U.S. alone.
Back to Contents
MARGARET PERICAK-VANCE, PH.D., JAMES    B. DUKE PROFESSOR    OF MEDICINE AND DIRECTOR OF THE DUKE CENTER    OF HUMAN GENETICS (CENTER REAR),    AND ERIC POSTEL, M.D., ASSOCIATE PROFESSOR    OF OPHTHALMOLOGY AT THE DUKE UNIVERSITY    EYE CENTER (RIGHT), AND THEIR    COLLEAGUES AT VANDERBILT UNIVERSITY ARE    USING APPLIED    BIOSYSTEMS’ TECHNOLOGIES TO HELP ELUCIDATE THE    GENETIC BASIS OF AGE-RELATED MACULAR DEGENERATION (AMD). THEIR    FINDINGS MAY SOMEDAY HELP INDIVIDUALS SUCH AS NANCY LEWIS,    SHOWN HERE WITH HER AMD-AFFLICTED MOTHER, VELMA JARRELL,    DISCOVER THEIR RISK OF THE DISORDER EARLY ENOUGH TO TAKE PREVENTIVE MEASURES.    STATES DR. PERICAK-VANCE,*“Technology    advances have given us a new way to look at the cause of this common, debilitating    condition.”*
Back to Contents
**T    O U C H I N G  L I V E S****S                          o l v i n g  C r i m e s**Applied Biosystems’ human identification products are the most commonly used in the rapidly expanding field of DNA forensics. In 2004, President Bush proposed $1 billion over the next five years, much of it for states to purchase DNA sequencing equipment and human identification kits to work down the backlog of more than 500,000 unanalyzed samples that has thwarted crime solving in many states. Also spurring growth are laws passed by an increasing number of U.S. states and European countries that require DNA profiles to be taken and deposited in DNA databases upon felony conviction or, in some jurisdictions, upon arrest for serious crimes. Driving the adoption of Applied Biosystems products for this application is their abilityto deliver reliable, reproducible and cost-effective results. The large, emerging markets of population security (with $12 billion of U.S. funding in the current government fiscal year) and quality and safety testing (estimated at $4 billion) offer similar opportunities for Applied Biosystems to develop new applications of its core technologies. In each of these applied markets, the goal is to provide not just data, but answers – answers that can be used by prosecutors and defense counsel to support their cases in court, by government agencies and companies to evaluate food or water safety, and by security and health experts to assess the severity of biothreats.
Back to Contents
DEBBIE SMITH,        KIDNAPPED AND RAPED IN 1989, HAD TO WAIT MORE THAN SIX YEARS BEFORE HER        PERPETRA­TOR        WAS IDENTIFIED THROUGH A DNA DATABASE. ANXIOUS        TO HELP OTHER VICTIMS DEVASTATED BY SEXUAL VIOLENCE, SHE BECAME AN ADVOCATE        FOR THE        USE OF DNA-MATCHING TECHNOLOGY.    AS A RESULT, THE DEBBIE SMITH ACT    WAS SIGNED INTO LAW BY PRESIDENT BUSH    AS PART OF THE JUSTICE FOR ALL ACT    OF 2004. SAYS DEBBIE, *“There    are as many as 170,000 rape samples waiting to be analyzed – each representinga woman living in fear. DNA testing can give these women back their futures.”*
Back to Contents
**F              I N A N C I A L  R E V I E W**
 
**19-20**** Selected Consolidating Financial          Data****21-46 Management’s Discussion and Analysis**31        Discussion of Applera Corporation35        Discussion  of Applied Biosystems Group40        Discussion  of Celera Genomics Group43        Discussion of Celera Diagnostics44        Market Risks44        Outlook46        Forward-Looking Statements**47-50          Financial Statements**47        Consolidated  Statements of Operations48        Consolidated  Statements of Financial Position49        Consolidated  Statements of Cash Flows50        Consolidated  Statements of Stockholders’ Equity**51-90 Notes to Consolidated Financial Statements****91**        ** Reports of Management****92**        ** Report  of Independent Registered Public Accounting Firm**
Back to Contents
Selected Consolidating        FinancialData Applera    Corporation   (Dollar amounts in thousands except per share amounts)Fiscal years ended June 30, 2001 2002 2003 2004 **2005**  **Financial Operations**                Net revenues                Applied Biosystems group $ 1,619,495 $1,604,019 $1,682,943 $1,741,098 **$****1,787,083** Celera Genomics group  89,385  120,886  88,264  60,126  **31,048** Celera Diagnostics  1,587  9,206  20,763  36,702  **35,479** Eliminations  (66,341) (32,893) (14,738) (12,733) **(8,470****)**Applera Corporation  1,644,126  1,701,218  1,777,232  1,825,193  **1,845,140**  Income (loss) from continuing operations                Applied Biosystems group $212,391 $168,481 $199,617 $172,253 **$****236,894** Celera Genomics group  (186,229) (211,772) (81,929) (57,476) **(77,117****)**Celera Diagnostics  (4,960) (44,763) (51,237) (41,968) **(29,883****)**Eliminations  6,032  47,473  52,029  42,144  **29,901** Applera Corporation  27,234  (40,581) 118,480  114,953  **159,795**  **Per Share Information**                **Applied Biosystems Group**                Income per share from continuing operations                Basic $1.01 $     0.80 $     0.96 $     0.84 **$****     1.21** Diluted $0.96 $     0.78 $     0.95 $     0.83 **$****     1.19** Dividends declared per share $0.17 $      0.17 $      0.17 $     0.17 **$** **     0.17**  **Celera Genomics Group**                Net loss per share                Basic and diluted $(3.07)$(3.21)$(1.15)$(0.79)**$****(1.05****)** **Other Information**                Cash and cash equivalents andshort-term investments                Applied Biosystems group $392,459 $470,981 $601,666 $504,947 **$****756,236** Celera Genomics group  995,558  888,922  802,402  745,794  **668,249** Applera Corporation  1,388,017  1,359,903  1,404,068  1,250,741  **1,424,485**  Total assets                Applied Biosystems group $1,677,887 $1,818,582 $2,126,715 $1,947,760 **$****2,290,063** Celera Genomics group  1,220,136  1,250,044  1,122,066  1,017,714  **869,231** Celera Diagnostics  14,164  21,826  35,902  36,903  **37,135** Eliminations  (24,329) (15,053) (27,191) (29,526) **(32,244****)**Applera Corporation  2,887,858  3,075,399  3,257,492  2,972,851  **3,164,185**  Long-term debt                Applied Biosystems group $— $— $— $— **$****—** Celera Genomics group     17,983  17,101       Applera Corporation     17,983  17,101        
Selected consolidating financial data provides five years of financial information for Applera Corporation. This table includes commonly used key financial metrics that facilitate comparisons with other companies. We include information on our business segments in the above selected consolidating financial data to facilitate theunderstanding of our business and our financial statements. Our board of directors approves the method of allocating earnings to each class of our common stock for purposes of calculating earnings per share. This determination is generally based on net income or loss amounts of the Applied Biosystems group and the Celera Genomicsgroup calculated in accordance with accounting principles generally accepted in the United States of America, or GAAP, consistently applied. See Note 14 to our consolidated financial statements for a detailed description of our segments and the management and allocation policies applicable to the attribution of assets, liabilities,revenues and expenses. You should read this selected consolidating financial data in conjunction with our consolidated financial statements and related notes.
19
Back to Contents
20Selected Consolidating        Financial Data— (Continued) Applera        Corporation
As part of our recapitalization on May 6, 1999, we issued two new classes of common stock called Applera Corporation-Applied Biosystems Group Common Stock and Applera Corporation-Celera Genomics Group Common Stock.

We established Celera Diagnostics in fiscal 2001 as a 50/50 joint venture between the Applied Biosystems group and the Celera Genomics group. This venture is focused on the discovery, development, and commercialization of diagnostic products.

A number of items, shown below, impact the comparability of our data from continuing operations. All amounts are pre-tax, with the exception of the tax adjustments, including the valuation allowance reductions, recorded as tax benefits in fiscal 2003 and fiscal 2005.
(Dollar amounts in millions)Fiscal years ended June 30, 2001 2002 2003 2004 **2005**  **Applied Biosystems Group**                Net gains/(losses) on investments $15.0 $(8.2)$— $11.2 **$****—** Employee-related charges, asset impairments and other         (29.5)  (25.0) **(31.8****)**Acquired in-process research and development charge      (2.2)         Tax adjustments including valuation allowance reductions        27.8     **23.5** Net gains on litigation settlements        25.8  6.7  **8.5** Asset dispositions              **29.7**  **Celera Genomics Group**                Employee-related charges, asset impairments and other $(69.1)$(28.7)$(15.1)$(18.1)**$****(4.3****)**Net gains/(losses) on investments      (6.0)     24.8    Acquired in-process research and development charge     (99.0)         R&D tax credits              **2.2**  
Back to Contents
Management’s      Discussion and Analysis Applera        Corporation   **Discussion of Operations**
The purpose of the following management’s discussion and analysis is to provide an overview of the business of Applera Corporation to help facilitate an understanding of significant factors influencing our historical operating results, financial condition, and cash flows and also to convey our expectations of the potential impact of knowntrends, events, or uncertainties that may impact our future results. You should read this discussion in conjunction with our consolidated financial statements and related notes. Historical results and percentage relationships are not necessarily indicative of operating results for future periods. When used in this management discussion, theterms “Applera,” “Company,” “we,” “us,” or “our” mean Applera Corporation and its subsidiaries.

We have reclassified some prior period amounts in the consolidated financial statements and notes for comparative purposes.

During fiscal 2005, we reclassified $22.7 million relating to fiscal 2004 and $20.2 million relating to fiscal 2003 of costs supporting our patent related activities from R&D expenses to SG&A expenses. This reclassification had no impact on net income or earnings per share.

During fiscal 2005, we began classifying all of our investments in auction rate securities as short-term investments. Prior to fiscal 2005, some of these securities were included in cash and cash equivalents. Short-term investments included $54.1 million of auction rate securities at June 30, 2004. There were no investments in auction ratesecurities as of June 30, 2005. This reclassification had no impact on results of operations or previously reported cash flows from operations or financing activities.
**Overview**
We are comprised of three business segments: the Applied Biosystems group, the Celera Genomics group, and Celera Diagnostics.

The Applied Biosystems group    serves the life science industry and research community by developing and    marketing instrument-based systems, consumables, software, and services.    Customers use these products and services to analyze nucleic acids (DNA and    RNA), small molecules, and proteins to make scientific discoveries, develop    new  pharmaceuticals, and conduct standardized testing. The Applied Biosystems    group’s products also serve the needs of some markets outside of life    science research, which we refer to as “applied markets,” such    as the fields of: forensic testing and human identification; biosecurity,    which refers to products needed in response to the threat  of biological    terrorism and other malicious, accidental, and natural biological dangers;    and food and environmental testing.

The Celera Genomics group is    engaged principally in the discovery and development of targeted therapeutics    for cancer, autoimmune, and inflammatory diseases. The Celera Genomics group    is leveraging its proteomic, bioinformatic, and genomic capabilities to identify    and validate drug targets, and to 

discover and develop small  molecule therapeutics.    It is also seeking to advance therapeutic antibody and selected small molecule      drug programs in collaboration with global technology and market leaders.

Celera Diagnostics, a 50/50 joint venture between the Applied Biosystems group and the Celera Genomics group, is focused on the discovery, development, and commercialization of diagnostic products.

In fiscal 1999, as part of a recapitalization of our Company, we created two classes of common stock referred to as “tracking” stocks. Tracking stock is a class of stock of a corporation intended to “track” or reflect the relative performance of a specific business within the corporation.

Applera Corporation-Applied Biosystems Group Common Stock (“Applera-Applied Biosystems stock”) is listed on the New York Stock Exchange under the ticker symbol “ABI” and is intended to reflect the relative performance of the Applied Biosystems group. Applera Corporation-Celera Genomics Group Common Stock (“Applera-CeleraGenomics stock”) is listed on the New York Stock Exchange under the ticker symbol “CRA” and is intended to reflect the relative performance of the Celera Genomics group. There is no single security that represents the performance of Applera as a whole, nor is there a separate security traded for Celera Diagnostics.

Holders of Applera-Applied Biosystems stock and holders of Applera-Celera Genomics stock are stockholders of Applera. The Applied Biosystems group and the Celera Genomics group are not separate legal entities, and holders of these stocks are stockholders of a single company, Applera. As a result, holders of these stocks are subjectto all of the risks associated with an investment in Applera and all of its businesses, assets, and liabilities. The Applied Biosystems group and the Celera Genomics group do not have separate boards of directors. Applera has one board of directors, which will make any decision in accordance with its good faith business judgment that thedecision is in the best interests of Applera and all of its stockholders as a whole.

More information about the risks relating to our capital structure, particularly our two classes of capital stock, is contained in our Form 10-K Annual Report for fiscal 2005.

Our fiscal year ends on June 30. The financial information for each segment is presented in Note 14 to our consolidated financial statements, Segment, Geographic, Customer and Consolidating Information. Management’s discussion and analysis addresses the consolidated financial results followed by the discussions of our threesegments.
**Business Highlights** *Applied Biosystems Group*  •In September 2004, the Applied Biosystems group and MDS Inc. announced the signing of a definitive agreement to expand the scope of their joint venture in life science mass spectrometry. Under the terms of the agreement, the Applied Biosystems group sold some Applied Biosystems MALDI Time-of-Flight (“TOF”) assets toMDS. This transaction was completed in October 2004. Subsequent to the sale,   21
Back to Contents
22Management’s    Discussion and Analysis — (Continued) Applera        Corporation     MDS and the Applied Biosystems group each contributed some of the MALDI TOFassets to Applied Biosystems/MDS Sciex Instruments, a 50/50 joint venture of the Applied Biosystems group and MDS Sciex, a division of MDS.    •In October 2004, the Applied Biosystems group began commercial sales of the Applied Biosystems 7900HT Fast Real-Time PCR System and the Applied Biosystems 9800 Fast PCR System. Both systems are designed to reduce the time to results and increase productivity for performing polymerase chain reaction (“PCR”). In January2005, the Applied Biosystems group began commercial sales of the Applied Biosystems 7500 Fast Real-Time PCR System and an optional upgrade kit for the original 7500 Real-Time PCR System to the Fast configuration.    •In November 2004, the Applied Biosystems group began commercial sales of a new line of Genetic Analyzers for low-to-medium-throughput laboratories. The Applied Biosystems 3130 Series of Genetic Analyzers, which replace the ABI PRISM® 3100 and 3100-*Avant* Genetic Analyzers, are designed to deliver enhancedautomation, faster turnaround times, higher reliability, and higher data quality than previous generation technologies.    •Also in November 2004, the Applied Biosystems group announced that the U.S. Patent & Trademark Office granted Applera a fundamental patent pertaining to real-time PCR instrumentation.    •In December 2004, the Applied Biosystems group announced that the European Patent Office revoked Applera’s European Patent covering real-time PCR thermal cycler technology. The Applied Biosystems group is seeking to have the patent reinstated through the appeal process. A German Court has suspended the previouslygranted injunctions pending the outcome of this appeal. In April 2005, the Applied Biosystems group announced that the Japanese Patent Office has held invalid Applera’s Japanese Patent No. 3136129 covering real-time PCR thermal cycler technology. Applera has appealed the decision.    •In January 2005, the Applied Biosystems group began commercial sales of the API 5000TM LC/MS/MS System for small molecule quantification in pharmaceutical drug development. The mass spectrometry system achieves an average nine-fold increase in sensitivity over other commercially available systems.    •In March 2005, the Applied Biosystems group announced a collaborative research study with the National Center for Toxicological Research of the U.S. Food and Drug Administration (“FDA/NCTR”) whereby the Applied Biosystems group will use its Expression Array System and Rat Genome Survey Microarray to investigate thetoxicity of a common class of diabetes drugs using samples provided by the FDA/NCTR.    •In April 2005, the          Applied Biosystems group announced that the U.S. District Court in          New Haven, Connecticut had issued an additional ruling in Applera’s          and Roche Molecular Systems’ patent infringement litigation against          MJ Research, a division of Bio-Rad Laboratories, Inc. The Court, based          on the jury’s          April 2004 finding that MJ Research had willfully  infringed patents          relating to PCR owned by the Applied Biosystems group and Roche, increased          damages awarded to the Applied Biosystems group and Roche        to approximately $35 million, in addition to awarding reasonable        attorneys’ fees. Please refer to Note 9 to our consolidated financial        statementsfor more information.    •Also in April 2005, the Applied Biosystems group announced a Joint Research Protocol with the NCI Cohort Consortium in the Study of Breast and Prostate Cancer through which the Consortium will use Applied Biosystems TaqMan® SNP Genotyping Assays and 7900HT Real-Time PCR Systems to identify novel inherited genevariants that may contribute to the development of these two cancers.     •In May 2005, the Applied Biosystems group announced that Applera had reached definitive agreement with Hoffmann-La Roche, Inc. and some of its affiliates (“Roche”), effective May 6, 2005, to settle all outstanding litigation and arbitration related to contractual relationships involving rights to and commercialization of PCR andreal-time PCR as described under Item 3. “Legal Proceedings” in Part I of our Form 10-K Annual Report for fiscal 2005. The parties subsequently sought and received dismissal of the litigation and arbitration proceedings. In connection with the settlement, the parties amended some licenses granted by each party to the other in theresearch, applied, and diagnostics fields, worldwide. In addition, Applera has become the exclusive licensor of some Roche patents covering reagents, kits, and methods for practicing PCR and real-time PCR in the research and applied fields. This will allow the Applied Biosystems group to expand its existing PCR licensing programto include PCR and real-time PCR patents not previously part of its licensing program. The settlement also releases the Applied Biosystems group, beginning in May 2007, from its obligations to purchase some enzymes and other PCR-related reagent products from Roche under pre-existing supply agreements. In July 2005, theApplied Biosystems group announced it has granted a license to Invitrogen Corp. under the expanded PCR licensing program.    •In June 2005, the Applied Biosystems group and Invitrogen Corporation announced a strategic co-marketing and re-selling alliance to deliver solutions for proteomic analysis and biomarker studies in drug discovery and disease research worldwide.    •During the fourth quarter of fiscal 2005, the Applied Biosystems group began shipments of several new mass spectrometers: the 3200 Q TRAP® and the API 3200TM LC/MS/MS Systems, for food and beverage, environmental, forensic, clinical research, and pharmaceutical analysis markets; and the 4800 MALDI TOF/TOFTMAnalyzer, offering a new level of sensitivity and efficiency for proteomics workflows.     •In July 2005, the Applied Biosystems group and the National Institute of Genomic Medicine of Mexico (Instituto Nacional de Medicina Genomica or “INMEGEN”), announced a collaboration to establish an Applied Biosystems Sequencing and Genotyping Unit at INMEGEN and conduct collaborative research studies focused onhealth issues important to the Mexican population.
Back to Contents
Management’s    Discussion and Analysis — (Continued) Applera        Corporation    *Celera Genomics Group*    •In September 2004, the Celera Genomics group announced a collaboration with Genentech, Inc. to discover and develop targeted therapies for cancer. Genentech may develop various products against therapeutic targets licensed from the Celera Genomics group, including antibodies, antibody fragments, proteins or smallmolecule drugs.    •In April 2005, the Celera Genomics group announced that two of its protein targets were selected for further investigation by Abbott Laboratories for therapeutic development. These were the first targets selected for advancement in the strategic collaboration established in July 2004 between the Celera Genomics group andAbbott to jointly discover, develop, and commercialize targeted therapies for the treatment of cancer.    •In July 2005, the Celera Genomics group reported the initiation of a Phase I clinical trial for its novel histone deacetylase (“HDAC”) inhibitor, CRA-024781, in patients with refractory solid cancers.    •In July 2005, the Celera Genomics group announced that it has advanced its third preclinical small molecule program, a Cathepsin S inhibitor, into late preclinical development for the treatment of psoriasis. This compound was developed in South San Francisco, California as part of a proprietary unpartnered program to developinhibitors of Cathepsin S. Other immune-mediated diseases are under consideration. During fiscal 2005, the Celera Genomics group also commenced a small molecule program to address kinases associated with the phosphatase gene PTPN22, a target arising from the disease association studies conducted at Celera Diagnostics.    •In January 2005, the Celera Genomics group moved a small molecule program to lead optimization against a cancer target as a result of findings from its proteomics research activities. During fiscal 2005, the Celera Genomics group also initiated a new proteomics discovery program related to gastric cancer.     •During fiscal 2005,          through its proteomic studies, the Celera Genomics group continued          to identify and validate new targets in pancreatic, colon, breast,          and lung cancer. To date, three of the Celera Genomics group’s          validated targets have been accepted by collaborators for further study          and four are under consideration by  collaborators. The Celera Genomics          group is seeking new partners for possible therapeutic development          for other non-partnered validated targets. The first targets from renal          carcinoma were moved into validation, and the first diabetic samples          were obtained for our recently initiated metabolic disease program          during the fourthquarter of fiscal 2005.  *Celera Diagnostics*    •In fiscal 2005, Celera Diagnostics completed its collaboration with Merck & Co., Inc. to identify novel targets for drug discovery and diagnostic markers related to Alzheimer’s          disease. Celera Diagnostics received all research milestone payments          for the completion of this collaboration, and is reviewing the diagnostic          potential of thecompleted   research. In July 2005, the two companies        extended their collaboration to study additional genes associated with        this disease primarily for the purpose of supporting Merck’s therapeutic      efforts.    •In October 2004, Celera Diagnostics announced and published that it identified genetic variants associated with late-onset Alzheimer’s disease that may have pharmacogenomic implications for drugs in development as well as current and future therapies for Alzheimer’s and other neurodegenerative diseases.    •In January 2005, Celera Diagnostics announced the initiation of two product development programs, one related to Fragile X, the leading cause of inherited mental retardation, and a second related to the detection and genotyping of the human papillomavirus (“HPV”), which is linked to a majority of cervical cancer cases. In April2005, Celera Diagnostics presented the results of a study of its prototype HPV assay for detection of high risk HPV strains at the 15th European Congress of Clinical Microbiology and Infectious Diseases. The study demonstrated the potential of the Celera Diagnostics prototype assay to detect high risk HPV in samples that wereinconclusive when typed by a commercially available HPV diagnostic test.    •At the American College of Cardiology meeting in March 2005, Celera Diagnostics and its collaborators reported findings related to studies of cardiovascular disease. In a discovery and replicated study in functional single nucleotide polymorphisms (“SNPs”) that are associated with myocardial infarction (“MI”), a variant in a genethat is a member of a family of targets for drug therapies was identified that conferred approximately twice the risk for MI. These results broaden the understanding of the genetic risk for MI, and may have implications for therapeutic development around this family of targets.    •During fiscal 2005, Celera Diagnostics began to transfer information to Laboratory Corporation of America, as part of an ongoing collaboration between the two businesses to develop methods to predict risk for breast cancer metastasis. Celera Diagnostics also has begun transferring information to Laboratory Corporationrelating to breast cancer patients’ responsiveness to hormonal therapy. Celera Diagnostics believes that multiple test procedures could result from this work.     •In May 2005, Celera Diagnostics announced finding a genetic variant associated with a greater than 20-fold increase in risk for Non-Alcoholic Steatohepatitis (“NASH”), a common progressive liver disease that often leads to fibrosis and cirrhosis.    •Results on a variant in a second gene (CPT1A) associated with progression to fibrosis in hepatitis C (“HCV”)-infected patients were presented at the European Society for the Study of the Liver in Paris in April 2005. This variant was also associated with risk for NASH and these findings were reported at a meeting of the AmericanAssociation for the Study of Liver Diseases in June 2005.23
Back to Contents
24Management’s    Discussion and Analysis — (Continued) Applera        Corporation       •Abbott and Celera Diagnostics announced that Abbott has received CE Mark certifications for a real-time PCR test for monitoring HIV-1 viral load in patients in June 2005 and for a real-time PCR test for monitoring HCV viral load in patients in July 2005. *Other*    •During fiscal 2005,          our board of directors approved the accelerated vesting of substantially          all unvested stock options previously awarded to employees, officers,          directors, and consultants. Please refer to Note 1 to our consolidated          financial statements for more information. As a result of the accelerated          vesting, we recorded a pre-tax charge of $2.6 million for compensation          cost in fiscal 2005.  **Critical Accounting Estimates**
Our consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, or GAAP. In preparing these statements, we are required to use estimates and assumptions. While we believe we have considered all available information, actual results could affect thereported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. We believe that, of the significant accounting policies discussed in Note 1 to our consolidated financial statements, the followingaccounting policies require our most difficult, subjective or complex judgments:
 •Revenue recognition;    •Asset impairment and valuation allowances;    •Pension benefits;    •Allocation of purchase price to acquired assets and liabilities in business combinations;    •Exit or disposal activities; and    •Allocations to the Applied Biosystems group, the Celera Genomics group, and Celera Diagnostics. **Revenue Recognition**
The following describes only the areas that are most subject to our judgment. Please refer to Note 1, Accounting Policies and Practices, to our consolidated financial statements for a more detailed discussion of our revenue recognition policy.

In the normal course of business,    we enter into arrangements whereby revenues are derived from multiple deliverables.    In these revenue arrangements, we record revenue as the separate elements    are delivered to the customer if the delivered item is determined to represent    a separate earnings process, there is objective and reliable  evidence of    the fair value of the undeliverable item, and delivery or performance of    the undelivered item is probable and substantially in our control. For some    instruments where installation  is determined to be a separate    earnings process, the portion of the sales price allocable to the fair value    of the installation      is deferred and  recognized when installation is complete. We determine the fair value of the      installation process based on technician labor billing rates, the expected      number of hours to install the

instrument based on historical experience,      and amounts charged by third parties. We continually monitor the level    of effort required for the installation of our instruments to ensure that    appropriate      fair values have been determined.

We recognize royalty revenues when earned over the term of the agreement in exchange for the grant of licenses to use our products or some technologies for which we hold patents. We recognize revenue for estimates of royalties earned during the applicable period, based on historical activity, and make revisions for actual royaltiesreceived in the following quarter. Historically, these revisions have not been material to our consolidated financial statements. For those arrangements where royalties cannot be reasonably estimated, we recognize revenue upon the receipt of cash or royalty statements from our licensees.
**Asset Impairment and Valuation Allowances** *Inventory*
Inventories are stated at the lower of cost (on a first-in, first-out basis) or market. Reserves for obsolescence and excess inventory are provided based on historical experience and estimates of future product demand. If actual demand is less favorable than our estimates, inventory write-downs may be required.
*Investments*
Publicly traded minority equity investments are recorded at fair value, with the difference between cost and fair value recorded to other comprehensive income (loss) within stockholders’ equity. When the fair value of these investments decline below cost, and the decline is viewed as other-than-temporary, the cost basis is written downto fair value, which becomes the new cost basis, and the write-down is included in current earnings. We determine whether a decline in fair value is other-than-temporary based on the extent to which cost exceeds fair value, the duration of the market decline, the intent to hold the investment, and the financial health of, and specificprospects for, the investee.
*Deferred tax assets*
Deferred taxes represent the    difference between the tax bases of assets or liabilities, calculated under    tax laws, and the reported amounts in our consolidated financial statements.    Deferred tax assets generally represent items that can be used as a tax deduction    or credit in our tax return in future years for which we have already  recorded    the tax benefit in our consolidated statements of operations. We record a    valuation allowance against deferred tax assets if it is more likely than    not that we will not be able to utilize these assets to offset future taxes.    We determine if a valuation allowance is necessary based on estimates of    future taxable profits and losses andtax planning strategies. We believe that our deferred tax assets, except as described    in Note 3 to our consolidated financial statements, should be realizable    due to our estimate of future profitability in the U.S. as well as the extended    carryforward expiration periods granted by the American Jobs Creation Act of 2004 (the “Jobs Act”.) Please refer to Notes 1 and 3 to our consolidated financial statements 

Back to Contents
Management’s    Discussion and Analysis — (Continued) Applera        Corporation   
for more information on the Jobs Act. Subsequent revisions to estimates of future taxableprofits and losses and tax planning strategies could change the amount of the deferred tax asset we would be able to realize in the future, and therefore could increase or decrease the valuation allowance.
*Long-lived assets, including goodwill*
We test goodwill for impairment using a fair value approach at the reporting unit level annually, or earlier if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. A reporting unit can be an operating segment or a business if discrete financialinformation is prepared and reviewed by management. Under the impairment test, if a reporting unit’s carrying amount exceeds its estimated fair value, goodwill impairment is recognized to the extent that the reporting unit’s carrying amount of goodwill exceeds the implied fair value of the goodwill.

We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Events which could trigger an impairment review include, among others, a decrease in the market value of an asset, the asset’s inability to generate income from operations andpositive cash flow in future periods, a decision to change the manner in which an asset is used, a physical change to the asset or a change in business climate. We calculate estimated future undiscounted cash flows, before interest and taxes, resulting from the use of the asset and its estimated value at disposal and compare it to itscarrying value in determining whether impairment potentially exists. If a potential impairment exists, a calculation is performed to determine the fair value of the long-lived asset. This calculation is based on a valuation model and discount rate commensurate with the risks involved. Third party appraised values may also be used indetermining whether impairment potentially exists.

We may be required to record an impairment charge in the future for adverse changes in market conditions or poor operating results of a related reporting unit.
**Pension Benefits**
Pension plan expense and the    requirements for funding our major pension plans are determined based on    a number of actuarial assumptions. These assumptions include the expected    rate of return on pension plan assets, the discount rate applied to pension    plan obligations, and the rate of compensation increase of plan participants. Our    most significant pension plan is our U.S. pension plan, which constituted    over 95% of our consolidated pension plan assets and projected benefit obligations    as of the end of fiscal 2005. The accrual of future service benefits for    participants in our U.S. pension plan was frozen as of June 30, 2004.	As a result, our pension expense  decreased by approximately $7 million in fiscal 2005. Please refer to Note  4 to our consolidated financial statements for information regarding our pension  plans, expense recorded under our plans, and the actuarial assumptions used to  determine those expenses and the corresponding liabilities.

The expected rate of return on assets is determined based on the historical results of the portfolio, the expected investment mix of the plans’ assets, and estimates of future long-term investment returns. Our assumption for the expected rate of return on assets in our U.S. pension plan ranges from 5.25% to 8.5% for fiscal 2006,compared to our fiscal 2005 range of 6.5% to 8.5%. The discount rate used is based on rates available on high-quality fixed income debt instruments that have the same duration as our plan’s liabilities. At June 30, 2005, we calculated our U.S. pension obligation using a 5.25% discount rate, a 125 basis point decrease from the June30, 2004 rate of 6.5%. For the determination of the expected rate of return on assets and the discount rate, we take into consideration external actuarial advice. The expected rate of compensation increase was 4.0% at June 30, 2004. Effective in fiscal 2005, the expected rate of compensation increase was no longer factored into thedetermination of our net periodic pension expense as the accrual for future service benefits was frozen.

As of June 30, 2005, the unrecognized net losses for our U.S. pension plan were approximately $151.7 million, up from $114.2 million at June 30, 2004. Unrecognized net loss amounts arise primarily from the effects of changes in actuarial assumptions, as well as differences between expected and actual returns on plan assets, andare being systematically recognized in future net periodic pension expense in accordance with Statement of Financial Accounting Standards (“SFAS”) No. 87, “Employers Accounting for Pensions.” Amortization of total unrecognized net losses at June 30, 2005, is expected to increase net periodic pension expense by approximately$4 million in each fiscal year over the next twelve years.

The decrease in our discount rate assumption is expected to increase our net periodic pension expense for our U.S. pension plan by approximately $3.0 million in fiscal 2006 compared to fiscal 2005. A one percentage point increase or decrease in the discount rate for fiscal 2006 would decrease or increase our net periodic pensionexpense by approximately $2 million. A one percentage point increase or decrease in the expected rate of return on our pension assets for fiscal 2006 would also decrease or increase our net periodic pension expense by approximately $2 million. We do not generally fund pension plans when our contributions would not be taxdeductible. In fiscal 2005, we did not make any contributions to the U.S. plan. As of June 30, 2005, we did not expect to fund the U.S. plan in fiscal 2006 as no contributions are expected to be required under the Employee Retirement Income Security Act (“ERISA”) regulations due to the level of contributions made in previous fiscalyears. Our estimate of annual contributions is based on significant assumptions, such as pension plan benefit levels, tax deductibility, interest rate levels and the amount and timing of asset returns. Actual contributions could differ from this estimate.
**Allocation of Purchase Price to Acquired Assets       and Liabilities in Business Combinations**
The cost of an acquired business is assigned to the tangible and identifiable intangible assets acquired and liabilities assumed on the basis of their fair values at the date of acquisition. We
25
Back to Contents
26Management’s    Discussion and Analysis — (Continued) Applera        Corporation   
assess fair value using a variety of methods, including the use of independent appraisers, present value models, and estimation of current selling pricesand replacement values. Amounts recorded as intangible assets, including acquired in-process research and development, or IPR&D, are based on assumptions and estimates regarding the amount and timing of projected revenues and costs, appropriate risk-adjusted discount rates, as well as assessing the competition’s ability tocommercialize products before we can. Also, upon acquisition, we determine the estimated economic lives of the acquired intangible assets for amortization purposes. Actual results may vary from projected results.
**Exit or Disposal Activities**
From time to time, we may undertake    actions to improve profitability and cash flow performance, as appropriate.    We record a liability for costs associated with an exit or disposal activity    when the liability is incurred, as required under SFAS No. 146, “Accounting    for Exit or Disposal Activities.” Prior to adoption of SFAS No. 146    in January  2003, we expensed costs related to exit or disposal activities    that did not benefit future periods upon approval of the plan by management.    Costs incurred under an exit or disposal activity could include estimates    of severance and termination benefits, facility-related expenses, elimination    or reduction of product lines, asset-related write-offs, and termination    of contractual obligations, among other items. We will periodically review    these cost estimates and adjust the liability, as appropriate.
**Allocations to the Applied Biosystems Group, the Celera Genomics Group, and Celera Diagnostics**
The attribution of the assets, liabilities, revenues and expenses to the Applied Biosystems group, the Celera Genomics group, or Celera Diagnostics is primarily based on specific identification of the businesses included in each segment. Where specific identification is not practical, other methods and criteria, which require the use ofjudgments and estimates, are used that we believe are equitable and provide a reasonable estimate of the assets, liabilities, revenues and expenses attributable to each segment.

It is not practical to specifically identify the overhead portion of corporate expenses attributable to each of the businesses. As a result, we allocate these corporate overhead expenses primarily based on headcount, total expenses, or revenues attributable to each business.

Our board of directors approves the method of allocating earnings to each class of common stock for purposes of calculating earnings per share. This determination is generally based on the net income or loss amounts of the corresponding group calculated in accordance with GAAP, consistently applied.

The Applied Biosystems group contributed,among other things, its molecular diagnostics business to Celera Diagnostics as part of its initial contribution    to the joint venture. The Celera Genomics group contributed, among other    things, access to its genome databases. The Celera Genomics group and the    Applied Biosystems group account for their investments in Celera Diagnostics    under the equity method of 

accounting, with the Celera Genomics group recording    100% of the initial cash operating losses, up to $300 million, in its statements of operations as loss from joint venture. The Applied Biosystems group reimburses the Celera Genomics group for all tax benefits generated by Celera Diagnostics to the extent such tax benefits are utilized by the Applied Biosystems group. The Celera Genomics group and the Applied Biosystems group will share  operating losses incurred by Celera Diagnostics in excess of $300 million equally. Celera Diagnostics has accumulated cash operating losses of approximately $148 million through June 30, 2005. Celera Diagnostics’ profits,  if any, will be shared in the ratio of 65% to the Celera Genomics group and  35% to the Applied Biosystems group until such time as the Celera Genomics  group is reimbursed for any excess funding of initial losses after consideration  of tax reimbursements received from the Applied Biosystems group. Once the  excess funding is reimbursed, Celera Diagnostics’ profits will be shared equally between the groups. Refer to Note 14 to our consolidated financial statements for more information regarding Celera Diagnostics.

Our board of directors may modify, rescind, or adopt additional management and allocation policies applicable to the attribution of assets, liabilities, revenues and expenses to the businesses at its sole discretion at any time without stockholder approval. Our board of directors would make any decision in accordance with its good faithbusiness judgment that its decision is in the best interests of Applera and all of its stockholders as a whole.

A decision to modify or rescind the management and allocation policies, or adopt additional policies, could have different effects on holders of Applera–Applied Biosystems stock and holders of Applera–Celera Genomics stock or could result in a benefit or detriment to one class of stockholders compared to the other class.
**Events Impacting Comparability**
We are providing the following information for the fiscal years ended June 30 on some actions taken by us or events that occurred in the periods indicated. We describe the effect of these items on our reported earnings for the purpose of providing you with a better understanding of our on-going operations. You should consider theseitems when making comparisons to past performance and assessing prospects for future results.
(Dollar amounts in millions) 2003  2004  **2005**  Severance and benefit costs$(22.9)$(6.3)**$****(24.7****)**Excess lease space       **(10.0****)**Asset impairments    (36.1) **(0.8****)**Office closures (1.4)      Reduction of expected costs 4.3  0.6  **1.1**  Total employee-related charges, asset impairments, and other$(20.0)$(41.8)**$****(34.4****)** Other events impacting comparability:         Impairment of inventory recorded	in cost of sales$(9.5)$(1.2)**$****(1.7****)**Asset dispositions and litigation settlements 25.8  6.7  **38.2** Investment gains    36.0    Tax items 27.8     **25.7**  
Back to Contents
Management’s    Discussion and Analysis — (Continued) Applera        Corporation   **Employee-Related Charges, Asset and Goodwill Impairments, and Other**
The following charges have been recorded in the consolidated statements of operations in employee-related charges, asset impairments and other, except as noted.
*Fiscal 2005*
During fiscal 2005, the Applied Biosystems group recorded pre-tax charges consisting of the following components:
(Dollar amounts in millions) Employee-  Related Charges Excess  Lease Space Asset  Impairments      Total  First quarter  **$ 7.3**  **$ —**  **$ —**  **$ 7.3** Second quarter  **2.9**  **2.3**     **5.2** Fourth quarter  **11.6**  **6.2**  **2.6**  **20.4**  Total charges  **21.8**  **8.5**  **2.6**  **32.9**  Cash payments  **10.5**  **0.2**     **10.7** Non-cash charges     **5.2**  **1.9**  **7.1** Reduction of expected costs  **0.3**        **0.3**  Balance at June 30, 2005  **$11.0**  **$ 3.1**  **$0.7**  **$14.8**  
The fiscal 2005 severance charges reflect the Applied Biosystems group’s decision to reduce and rebalance its workforce and were implemented as a result of a strategic and operational analysis conducted by management. The positions eliminated are primarily in the areas of R&D, manufacturing, marketing, and operations. Theseactions are intended to allow us to expand personnel in other functional areas including field sales and support, manufacturing quality, and advanced research, as well as better align our resources with the needs of our customers. Additionally, the severance charges recorded in the first and second quarters related, in part, to staffreductions intended to integrate the Applied Biosystems MALDI TOF product line into the Applied Biosystems/MDS Sciex Instruments joint venture with MDS Inc. We believe these actions will improve operational efficiency and quality, while assuring that our R&D spending remains aligned with our strategic initiatives.

As of June 30, 2005, all of    the employees affected by the first and second quarter staff reductions had    been terminated. In addition, as of June 30, 2005, substantially all of the    affected employees related to the fourth quarter staff reduction had been    notified and the majority will be terminated or will no longer be actively    employed by  the end of the first quarter of fiscal 2006. Through June 30,    2005, we made cash payments of $7.2 million related to the first quarter    termination charge, $2.3 million related to the second quarter termination    charge, and $1.0 million related to the fourth quarter termination charge.    In regards to the excess lease space charges,  through June 30, 2005, we    made cash payments of $0.2 million related to the second quarter charge.    These cash expenditures were funded by cash provided by operating activities.    In the third quarter of fiscal 2005, the Applied Biosystems group recorded    a pre-tax benefit of $0.1 million for a reduction in anticipated employee-related    costs associated 

with the severance and benefit    charge recorded in the first quarter of fiscal 2005. In the fourth quarter    of fiscal 2005, the Applied Biosystems group recorded a pre-tax benefit of    $0.2 million for a reduction in anticipated employee-related costs associated with the severance and benefit charge recorded in the  second quarter of fiscal 2005. The remaining cash expenditures associated with the employee terminations of approximately $11 million are expected to be disbursed by the end of the third quarter of fiscal 2006. The savings from these actions are expected to be used to expand personnel during fiscal 2006 in other functional areas  including field sales and support, manufacturing quality, and advanced research. Augmenting and upgrading skills in these critical functions should support higher levels of sales over time.

The excess lease space charges represented the estimated cost of excess lease space less estimated future sublease income for certain leased facilities in Massachusetts and California whose leases extend through fiscal years 2007 to 2011. The asset impairment charges taken in the fourth quarter related to the write-down in value of theApplied Biosystems group’s facilities in San Jose, California and Houston, Texas. See Note 7 to our consolidated financial statements for more information on our California facility.

During fiscal 2005, the Celera Genomics group recorded pre-tax charges totaling $4.5 million related to our decision to discontinue promotion of products and most operations of Paracel, Inc., a business we acquired in fiscal 2000. Paracel developed high-performance genomic data and text analysis systems for the pharmaceutical,biotechnology, information services, and government markets. Since the focus of the Celera Genomics group had shifted to therapeutic discovery and development, Paracel was no longer deemed strategic to the overall business. The charge consisted of $1.1 million for severance and benefit costs, $1.7 million for excess facility leaseexpenses and asset impairments, and $1.7 million in cost of sales for the impairment of Paracel inventory. The charge for excess facility lease expenses and asset impairments was primarily for a revision to an accrual initially recorded in fiscal 2002 for the estimated cost of excess facility space for a lease that extends through fiscal 2011and to write off related fixed assets.

As of March 31, 2005, the majority of the affected Paracel employees had been terminated. Substantially all cash payments related to these terminations were made as of June 30, 2005. During fiscal 2005, we made cash payments of $2.1 million related to the excess lease space charge. The cash expenditures were funded by availablecash. Although the Celera Genomics group anticipates modest expenses related to the closure of the Paracel business and completion of remaining service obligations during fiscal 2006, these amounts are not expected to have a material impact on future operating results.

In the fourth quarter of fiscal 2005, the Celera Genomics group recorded a pre-tax charge of $3.4 million related to the Online/Information Business, an information products and service business. As previously announced, the Celera Genomics group realigned its organization to focus on therapeutic discovery and development and aspart of this realignment, the Online/Information Business was determined to be a non-strategic business. In fiscal 2002, the Celera Genomics group entered into an agreement pursuant to which
27
Back to Contents
28Management’s    Discussion and Analysis — (Continued) Applera        Corporation   
the Applied Biosystems group became the exclusive distributor of the Online/Information Business (see Note 14 to our consolidated financial statements for more information).

The pre-tax charge of $3.4 million    consisted of $1.8 million for severance and benefit costs and $1.6 million    for asset impairments, primarily related to information-technology leases.    As of June 30, 2005, all affected employees had been notified and all are    expected to be terminated by the end of the first quarter of fiscal 2006.    The  majority of the cash expenditures related to this action are expected    to be disbursed by the end of December 2005. No significant cash payments    associated with this action were made through June 30, 2005. The impact of    the Celera Genomics group’s determination that the Online/Information    Business was not strategic and its  subsequent agreement with the Applied    Biosystems group has been reflected in the Celera Genomics group’s financial    results over the past several years.
*Fiscal 2004*
During fiscal 2004, the Applied Biosystems group recorded pre-tax charges of $6.3 million for employee terminations. The savings resulting from this action are expected to be used to support the businesses that are driving the Applied Biosystems group’s revenue growth, including through the hiring of additional appropriately-skilledemployees. All cash payments were made by March 31, 2005. The cash payments were funded primarily from cash provided by operating activities.

In the fourth quarter of fiscal 2004, the Applied Biosystems group recorded pre-tax charges of $14.9 million for the impairment of patents and acquired technology related to Boston Probes, Inc., a business we acquired in fiscal 2002. As a result of a strategic and operational review, we determined, during the fourth quarter of fiscal2004, that the intellectual property was not expected to lead to feasible commercialization of the products that we had originally envisioned when we purchased Boston Probes. In accordance with SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” the impairment charge represented the amount by whichthe carrying amount of the assets exceeded their fair value. The fair value was based on estimated undiscounted future cash flows relating to the existing service potential of those assets.

Additionally in the fourth quarter    of fiscal 2004, the Applied Biosystems group recorded pre-tax charges of    $4.4 million for asset write-downs and other expenses related to the    decision to transfer the 8500 Affinity Chip Analyzer product line to HTS    Biosystems, Inc., its development partner for this product line. The $4.4 million    chargeconsisted of $3.2 million for write-downs of fixed assets and other chargesand $1.2 million for the impairment of inventory recorded in cost of sales.The Applied Biosystems group had entered into a collaboration and commercializationagreement for this product line with HTS Biosystems in fiscal 2002. As a result  of a change in  strategic direction and focus at the Applied Biosystems group,  as determined during the previously mentioned review, we determined that the  inventory and fixed assets related to this product line had no net realizable  value. Additionally, we wrote off a loan and accrued the final payments based  on our 

decision to terminate the  agreement with HTS Biosystems. In fiscal 2005, the Applied Biosystems group    recorded a pre-tax benefit of $0.7 million as a result of the repayment of this loan  by HTS Biosystems.

During the fourth quarter of fiscal 2004, the Celera Genomics group decided to pursue the sale of its Rockville, Maryland facility. As a result of this decision, we classified the related assets as assets held for sale within prepaid expenses and other current assets. In connection with the decision to sell the Rockville facility, the CeleraGenomics group recorded a pre-tax impairment charge of $18.1 million during the fourth quarter of fiscal 2004. This charge represented the write-down of the carrying amount of the facility to its estimated market value less estimated costs to sell. The estimated market value was based on a third-party appraisal. During the fourthquarter of fiscal 2005, the Celera Genomics group completed the sale of this facility and recorded a $3.6 million pre-tax favorable adjustment to the charge recorded in fiscal 2004.
*Fiscal 2003*
During fiscal 2003, the Applied Biosystems group recorded pre-tax charges totaling $33.8 million for organization-wide cost reductions in response to uncertain economic conditions as well as its overall strategy to return research and development investment to more traditional levels. The $33.8 million charge consisted of$24.3 million in employee-related charges, asset impairments and other, of which $22.9 million was for severance and benefits costs and $1.4 million was for office closures. The Applied Biosystems group also recorded $9.5 million for the impairment of assets in cost of sales. As the actions for this program were implemented, weincurred lower than anticipated employee-related costs. Accordingly, the Applied Biosystems group recorded pre-tax benefits of $4.3 million in the fourth quarter of fiscal 2003, $0.6 million in the second quarter of fiscal 2004, and $0.1 million in the third quarter of fiscal 2005 for reductions in expected employee-related costs.

The severance and benefits charge    related to the termination of approximately 400 employees worldwide. Positions    impacted, mainly in the U.S. and Europe, were primarily within the areas    of research, manufacturing, sales, marketing and administration. The workforce    reduction commenced in January 2003 and substantially all of the  affected    employees were terminated by the end of fiscal 2004. The asset impairment    charges resulted primarily from uncertainties surrounding the commercial    introduction of products based on a collaboration with Illumina, Inc. and    from a revised focus on products designed to offer the most efficient and    newest technology with long-term earnings growth potential. The charge for    office closures was primarily for one-time payments to terminate the leases    of excess facilities and to write-off the fixed assets and leasehold improvements    related to these facilities. These actions made funds available for new research    and development programs and marketing initiatives.

 

Back to Contents
Management’s    Discussion and Analysis — (Continued) Applera        Corporation   
The following table details the major components of the fiscal 2003 charges:
(Dollar amounts in millions) Employee-Related Charges AssetImpairments OfficeClosures      Total  Total charges  $22.9  $9.5  $1.4  $33.8 Cash payments  14.2     0.2  14.4 Non-cash charges     9.5  0.5  10.0 Reduction of expected costs  4.3        4.3  Balance at June 30, 2003  4.4  —  0.7  5.1  Cash payments  3.0     0.5  3.5 Reduction of expected costs  0.6        0.6  Balance at June 30, 2004  0.8  —  0.2  1.0  Cash payments  **0.2**     **0.2**  **0.4** Reduction of expected costs  **0.1**        **0.1**  Balance at June 30, 2005  **$ 0.5** ******$ —** ******$ —** ******$ 0.5**  
Substantially all cash payments were made by June 30, 2004. These payments were funded primarily from cash provided by operating activities. The majority of the remaining cash payments are expected to be disbursed by fiscal 2007.
**Other Events Impacting Comparability** *Asset dispositions and litigation settlements*
The following net gains have been recorded in the consolidated statements of operations in asset dispositions and litigation settlements.

During fiscal 2005, the Applied Biosystems group recorded a net pre-tax gain of $29.7 million for the sale of intellectual property, manufacturing inventory, and research and development assets related to the expansion of the scope of its existing joint venture in life science mass spectrometry with MDS Inc. Under the terms of thetransaction, we received $8 million in cash and a $30 million note receivable for a 50% interest in intellectual property assets related to current Applied Biosystems MALDI TOF mass spectrometry systems and next-generation product-related manufacturing and research and development assets. The note receivable is due in 5 years, ofwhich $6 million is payable in October 2006 and $8 million in each of October 2007, 2008, and 2009.

Also in fiscal 2005, the Applied Biosystems group received a payment of $8.5 million from Illumina, Inc. in connection with the termination of a joint development agreement and settlement of a patent infringement claim and a breach of contract claim.

In March 2004, the Applied Biosystems group and MDS Inc., through the Applied Biosystems/MDS Sciex Instruments joint venture, received a payment of $18.1 million from Waters Technologies Corporation in connection with the resolution of patent infringement claims between the parties. The Applied Biosystems group recorded anet gain of $6.7 million from legal settlements, including its share of the settlement between the Applied Biosystems/MDS Sciex Instruments joint venture and Waters Technologies Corporation, in the third quarter of fiscal 2004.

In March 2003, we received a    ruling in favor of the Applied Biosystems group and MDS Inc. in a patent infringement 

lawsuit against Micromass U.K.    Ltd. and its U.S. subsidiary, Micromass, Inc., both divisions of Waters Corporation.    In April 2003, the Applied Biosystems group received a payment that represented    its share of the judgment proceeds on the successful completion of the lawsuit.    We recorded a gain of $25.8 million, which represented the amount received, net of related fees and costs, in the fourth quarter of fiscal 2003.
*Investments*
The following gains have been recorded in the consolidated statements of operations in gain (loss) on investments, net, except as noted.

The Applied Biosystems group recorded pre-tax gains of $11.2 million in fiscal 2004, related primarily to the sales of minority equity investments. These investment sales resulted from management’s decision to liquidate non-strategic investments.

The Celera Genomics group recorded a pre-tax gain of $24.8 million in the fourth quarter of fiscal 2004 from the sale of its investment in Discovery Partners International, Inc. (“DPI”) common stock. Our investment in DPI common stock, which resulted from our acquisition of Axys Pharmaceuticals, Inc. in fiscal 2002, had beenaccounted for under the equity method of accounting. In fiscal 2003, based on the decline in its market capitalization, DPI re-assessed the value of its goodwill and other long-lived assets and recorded an impairment charge as a result of this re-assessment. Accordingly, the Celera Genomics group recognized a non-cash charge of$15.1 million in other income (expense), net in fiscal 2003, representing its share of the impairment charge.
*Tax items*
During the fourth quarter of fiscal 2005, the Applied Biosystems group recorded tax benefits of $23.5 million primarily related to additional U.S. R&D tax credit carryforwards, expected results of Canadian examinations, and settlement of some U.K. tax matters. Also during the fourth quarter of fiscal 2005, the Celera Genomics grouprecorded a tax benefit of $2.2 million related to additional U.S. R&D tax credits.

The effective tax rate for fiscal 2003 included a reduction of the valuation allowance on deferred tax assets resulting from the expected utilization of foreign tax credits and a reduction of the income tax liability due to the settlement of overseas tax audits for $27.8 million recorded in the fourth quarter of fiscal 2003. Our worldwidevaluation allowance was $86.5 million at June 30, 2003, which consisted of state deferred tax assets and foreign tax loss and foreign tax credit carryforwards. Our state deferred tax assets were subject to a full valuation allowance at June 30, 2003. The valuation allowance decrease in fiscal 2003 was due to our ability to utilize aportion of our foreign tax credits as well as our expectation that we will be able to utilize the remaining portion of those credits in the future. The fiscal 2003 reduction of the valuation allowance resulted from the implementation of a tax planning strategy to capitalize and amortize R&D expenses incurred in fiscal 2003 over a ten-year

 

 

 

 

 

 

 

 

 

 
29
Back to Contents
30Management’s    Discussion and Analysis — (Continued) Applera        Corporation   
period. The deferral of these    tax deductions created additional U.S. tax eligible to be offset by the available    foreign tax credit carryforwards that otherwise would have expired. We have    determined that implementation  of this tax planning strategy was both prudent    and feasible in order to utilize foreign tax

credits that were due to expire.      A valuation allowance has been maintained on the remaining carryforwards      since we may not  generate sufficient income, of the appropriate character, and in the particular      jurisdictions, to realize the benefits before carryforward periods expire.
 **Acquired Research and Development**
During fiscal 2002, the Celera Genomics group recorded a charge of $99.0 million to write-off the value of acquired IPR&D in connection with the Axys acquisition. We identified eight acquired IPR&D projects at the time of the Axys acquisition, which are either in various stages of research and development or are no longer beingpursued.
Project  Status  *Partnered Projects:* **Cathepsin S**  Collaboration between the Celera Genomics group and Aventis Pharmaceuticals Products, Inc., now sanofi-aventis. Sanofi-aventis has informed theCelera Genomics group that it has terminated this program. Our portion of the collaboration was completed prior to fiscal 2004.  **Cathepsin K**  In July 2004, the Celera Genomics group received a milestone payment from Merck, the Celera Genomics group’s partner for the Cathepsin Kproject, for the advancement of a Cathepsin K inhibitor into a Phase I clinical trial as a potential treatment for osteoporosis. Our portion of thecollaboration was completed prior to fiscal 2004 and Merck will make clinical development decisions for this compound.  **Tryptase**  The lead compound series reacquired from Bayer in October 2002, is no longer being pursued. We are continuing to evaluate proprietary oraltryptase inhibitors for the treatment of asthma. In May 2005, the Celera Genomics group announced that one of its tryptase inhibitors showedefficacy in treating allergic asthma in mice.  *Proprietary Projects:* **Factor VIIa**  The Celera Genomics group has identified a lead compound and has advanced its Factor VIIa program to a stage where it is seeking a partner forfurther development. Factor VIIa is a proprietary project for the development of therapeutics for blood clotting disorders.  **Cathepsin F, Urokinase, Serm-beta,****and Factor Xa**  Projects are no longer being pursued.    
The continuing projects will    require additional research and development efforts by the Celera Genomics    group or its collaborators before any products can be marketed, if ever.    These efforts include extensive pre-clinical and clinical testing and are    subject to lengthy regulatory review and clearance or approval by the U.S.    Food and DrugAdministration (“FDA”). The nature and timing of these remaining effortsare dependent on successful testing and clearance or approval of the productsas well as maintaining existing collaborative relationships and entering intonew collaborative relationships. If collaboration partners terminate    or elect to cancel their 

agreements or otherwise fail to conduct their collaborative  activities in a timely manner, the development process could be delayed or    abandoned.

The Celera Genomics group has in the past reviewed and continues to review its proprietary pre-clinical projects. These reviews may lead to revised prioritization, resourcing and strategies to move toward clinical trials. As a result of these actions, actual results for some programs have varied, and for others in the future may vary, fromthe valuation assumptions established at the acquisition date.

Back to Contents
Management’s    Discussion and Analysis — (Continued) Applera        Corporation    **Discussion of Applera Corporation’sConsolidated Operations** **Results of Continuing Operations —****2005 Compared with 2004** (Dollar amounts in millions) 2004 **2005** **% Increase/****(Decrease)**  Net revenues $1,825.2 **$****1,845.1**  **1.1%** Cost of sales  851.9  **849.7**  **(0.3%****)** Gross margin  973.3  **995.4**  **2.3%** SG&A expenses  512.3  **525.5**  **2.6%** R&D  354.3  **330.7**  **(6.7%****)**Amortization of intangible assets  2.9  **2.9**    Employee-related charges, asset impairments and other  41.8  **34.4**  **(17.7%****)**Asset dispositions and litigation settlements  (6.7) **(38.2****)** **470.1%**  Operating income  68.7  **140.1**  **103.9%** Gain on investments, net  35.5         **(100.0%****)**Interest income, net  22.8  **28.8**  **26.3%** Other income (expense), net  2.5  **4.5**  **80.0%**  Income before income taxes  129.5  **173.4**  **33.9%** Provision for income taxes  14.5  **13.6**  **(6.2%****)** Income from continuing operations $115.0 **$****159.8**  **39.0%**  Percentage of net revenues:          Gross margin  53.3% **53.9****%**   SG&A expenses  28.1% **28.5****%**   R&D  19.4% **17.9****%**   Operating income  3.8% **7.6****%**              Effective income tax rate  11% **8****%**    
The following table summarizes the impact of the previously described events impacting comparability included in the financial results for fiscal 2005 and 2004:
(Dollar amounts in millions)   2004  **2005**  Income (charge) included in income before income taxes  $(0.4)******$   2.1** Provision (benefit) for income taxes  1.2  **(24.8****)** 
Income from continuing operations increased for fiscal 2005 primarily due to improved gross margin and lower R&D expenses at the Applied Biosystems group, partially offset by higher SG&A expenses at the Applied Biosystems group and lower revenues at the Celera Genomics group. Additionally, income from continuing operationsincreased for fiscal 2005 due to the impact of the previously described events impacting comparability. The net effect of foreign currency on income from continuing operations in fiscal 2005 was a benefit of approximately $14 million. Please read our discussion of segments for information on their financial results.

The favorable effects of foreign currency increased net revenues by approximately 2% during fiscal 2005. As a result, net revenues, excluding the effects of foreign currency, decreased slightly in comparison to the prior fiscal year.
 •Revenues increased at the Applied Biosystems group, driven by strength in both the Real-Time PCR/Applied Genomics and Mass Spectrometry product categories, partially offset by lower revenues in the DNA Sequencing, Core PCR & DNA Synthesis, and Other Product Lines product categories.  •Net revenues decreased at the Celera Genomics group, primarily as a result of the expiration of Online/Information Business customer agreements and the discontinuation of most of the operations of Paracel during the first quarter of fiscal 2005.
Net revenues decreased 5.0%    in the U.S. and 0.9% in Asia Pacific, and increased 11.1% in Europe and 9.8%    in Latin America and other markets, compared with the prior fiscal year.    The favorable effects of foreign currency increased revenues by approximately    4% in Europe and 2% in Asia Pacific during fiscal 2005 compared to fiscal     2004. European revenues increased due primarily to continued strong sales    of the Applied Biosystems 3130 line of Genetic Analyzers and the Applied    Biosystems 7300 and 7500 Real-Time PCR Systems and increased sales of human    identification products. During fiscal 2005, revenues in Japan declined 5%    compared to the prior fiscalyear, net of a positive impact from foreign currency of approximately 2%. Factors    contributing to this decline included the continued shift of life science    research funding to areas outside of sequencing and constrained spending    due to anticipated lower growth in the fiscal 2006 government budget for    life science research. Revenues in  the U.S. decreased primarily due to reduced    sales of DNA analyzers to large U.S. genome centers at the Applied Biosystems    group and the expiration of Online/Information Business customer agreements    and discontinuation of most of the operations of Paracel at the Celera Genomics    group.

The higher gross margin percentage in fiscal 2005 compared to fiscal 2004 was due primarily to the favorable effects of foreign currency at the Applied Biosystems group as well as a decrease in both software amortization and warranty costs. Service margins at the Applied Biosystems group have improved for fiscal 2005 primarily drivenby growth in volume of service contracts, as well as improved pricing on selective billable parts, labor, and service contracts. Also, strong growth in some higher margin products within the sequence detection systems, human identification, and assays product lines helped minimize the effect of the decline in DNA Sequencinginstruments.

SG&A expenses for fiscal    2005 increased over the prior fiscal year due primarily to: higher employee-related    and outside consultant costs of $14 million at the Applied Biosystems    group; the unfavorable effects of foreign currency of approximately $9 million;    and increased spending of approximately $6 million on both thedevelopment of, and enhancements to, the Applied Biosystems myScienceSM virtualresearch community and e-commerce and genomics data portal (collectively knownas the Applied Biosystems Portal), and a strategic business review. In fiscal2004, the Applied Biosystems group engaged a consulting firm to assist managementin an in-depth review of its entire product portfolio. The increase in fiscal2005 was partially offset by: lower litigation-related legal expenses of approximately$8 million; lower insurance and pension costs of approximately $8 million;the discontinuation of most of the operations of Paracel; and lower Online/InformationBusiness expenses.

R&D expenses decreased for fiscal 2005 compared to fiscal 2004 primarily as a result of the previously announced
31
Back to Contents
32Management’s    Discussion and Analysis — (Continued) Applera        Corporation   
realignment of the Applied Biosystems group’s R&D product portfolio, the integration of the MALDI TOF product line into the Applied Biosystems/MDS Sciex Instruments joint venture with MDS Inc., cost reductions inthe Online/Information Business, and the discontinuation of most of the operations of Paracel. This decrease was partially offset by increased expenditures at the Celera Genomics group to support preclinicaldevelopment activities and the hiring of additional therapeutic R&D personnel.

Interest income, net increased during fiscal 2005 compared to fiscal 2004 primarily due to higher average interest rates, partially offset by lower average cash and cash equivalents and short-term investments.

Other income, net for fiscal 2005 increased in comparison to the prior fiscal year primarily due to higher benefits associated with our foreign currency risk management program in fiscal 2005 and losses recorded from equity method investments in fiscal 2004. This increase was partially offset by higher non-recurring cash receipts in fiscal2004.

The decrease in the effective tax rate for fiscal 2005 was primarily due to benefits related to R&D tax credit carryforwards, expected results of Canadian examinations, and settlement of some U.K. tax matters in fiscal 2005. An analysis of the differences between the federal statutory income tax rate and the effective income tax rate isprovided in Note 3 to our consolidated financial statements.
**Results of Continuing Operations —****2004 Compared with 2003** (Dollar amounts in millions)  2003  2004  % Increase/(Decrease)  Net revenues $1,777.2 $1,825.2  2.7% Cost of sales  849.6  851.9  0.3%  Gross margin  927.6  973.3  4.9% SG&A expenses  455.3  512.3  12.5% R&D  381.3  354.3  (7.1%)Amortization of intangible assets  5.9  2.9  (50.8%)Employee-related charges, asset impairments and other  20.0  41.8  109.0% Asset dispositions and litigation settlements  (25.8) (6.7) (74.0%) Operating income  90.9  68.7  (24.4%)Gain (loss) on investments, net  (2.6) 35.5    Interest income, net  29.6  22.8  (23.0%)Other income (expense), net  (12.3) 2.5  (120.3%) Income before income taxes  105.6  129.5  22.6% Provision (benefit) for income taxes  (12.9) 14.5  (212.4%) Income from continuing operations $118.5 $115.0  (3.0%) Percentage of net revenues:          Gross margin  52.2% 53.3%   SG&A expenses  25.6% 28.1%   R&D  21.5% 19.4%   Operating income  5.1% 3.8%              Effective income tax (benefit) rate  (12%) 11%    
The following table summarizes the impact of the previously described events impacting comparability included in the financial results for fiscal 2004 and 2003:
(Dollar amounts in millions)   2003  2004  Charge included in income beforeincome taxes $(18.8) $(0.4)Provision (benefit) for income taxes  (34.6) 1.2  
Income from continuing operations decreased for fiscal 2004 primarily due to the impact of the previously described events impacting comparability, as well as due to higher SG&A expenses resulting primarily from increased litigation-related legal expenses, spending on the Applied Biosystems Portal, insurance and pension costs, and theunfavorable effects of foreign currency. This decrease was partially offset by revenue growth at the Applied Biosystems group from all three sources: instruments, consumables, and other sources, and lower R&D expenses, in part due to the completion of the Applera Genomics Initiative. The net effect of foreign currency on income fromcontinuing operations in fiscal 2004 was a benefit of approximately $8 million compared to fiscal 2003.

The favorable effects of foreign currency increased net revenues by approximately 2% when comparing fiscal 2004 with fiscal 2003. As a result, net revenues, excluding the effects of foreign currency, were relatively flat with the prior fiscal year.
 •Revenues increased slightly at the Applied Biosystems group, driven by strength in the Real-Time PCR/Applied Genomics and Mass Spectrometry product categories, partially offset by lower revenues in the DNA Sequencing, Core PCR & DNA Synthesis, and Other Product Lines product categories.    •The Celera Genomics group reported lower net revenues primarily as a result of the continuing expiration of Online/Information Business customer agreements.     •Celera Diagnostics’ net revenues increased due to an increase in equalization payments under the profit-sharing arrangement with Abbott Laboratories and technology-related payments. 
Net revenues decreased 2.0%    in the U.S. and 1.1% in Asia Pacific, and increased 12.2% in Europe and 19.3%    in Latin America and other markets, compared with the prior fiscal year.    The favorable effects of foreign currency increased revenues by approximately    6% in Europe and 2% in Asia Pacific during fiscal 2004 compared to fiscal     2003. European revenues increased due primarily to strong sales of the 4000    Q TRAP System and Real-Time PCR/Applied Genomics instruments and consumables.    Partially offsetting the increase in European revenues was an order from    a large-scale genome center for a substantial number of 3730*xl* instrument    systems in fiscal 2003 that  was not repeated in fiscal 2004. During fiscal    2004, revenues in Japan declined 5% compared to the prior fiscal year, net    of a positive impact from foreign currency of approximately 2%. This decline    primarily resulted from a disruption in traditional customer purchasing patterns    due to the transition of the Applied Biosystems group’suniversity customers to Independent Administrative Agency status. Revenues in    the U.S. decreased primarily due to weaker DNA

 

 

 

 

 

 

Back to Contents
Management’s    Discussion and Analysis — (Continued) Applera        Corporation   
sequencing sales to large genome centers at the Applied Biosystems group and the continuing expiration of Online/Information Business customer agreements at the Celera Genomics group, partially offset by higherrevenues at Celera Diagnostics.

The higher gross margin percentage in fiscal 2004 was due primarily to: additional costs related to changes in the oligo manufacturing processes made in the fourth quarter of fiscal 2003; a shift in product mix towards newer, higher margin products such as the 4000 Q TRAP, human identification products used in forensics, and theApplied Biosystems 7300 Real-Time and 7500 Real-Time PCR Systems; operational efficiencies; and the favorable effects of foreign currency at the Applied Biosystems group. This increase was partially offset by lower revenues in fiscal 2004 at the Celera Genomics group. In addition, fiscal 2003 gross margin was lower due to thepreviously discussed asset impairment charge, which reduced gross margin by less than one percentage point.

The increase in SG&A expenses, as a percentage of net revenues, in fiscal 2004 compared with fiscal 2003 was primarily due to: higher litigation-related legal expenses of approximately $19 million; increased spending of approximately $12 million on the development of, and enhancements to, the Applied Biosystems Portal; andincreased insurance and pension costs of approximately $7 million. The increase was partially offset by lower employee-related costs due to the reduction in personnel at the Applied Biosystems group announced in December 2002 and lower employee-related costs and other service costs at the Celera Genomics group. In addition, theunfavorable effects of foreign currency increased fiscal 2004 SG&A expenses by approximately $15 million.

R&D expenses decreased in fiscal 2004 compared with fiscal 2003 due to the completion of the funding for the Applera Genomics Initiative, the costs of which were shared among our three businesses, lower employee-related costs due to the reduction in personnel at the Applied Biosystems group announced in December 2002, andcost reductions in the Online/Information Business at the Celera Genomics group. This decrease was partially offset by support for new product introductions at the Applied Biosystems group, increased therapeutic R&D expenditures at the Celera Genomics group, and increased spending for discovery programs and product developmentat Celera Diagnostics.

Interest income, net decreased in fiscal 2004, primarily due to lower average interest rates and, to a lesser extent, slightly lower average cash and cash equivalents and short-term investment balances during fiscal 2004 as compared to fiscal 2003.

Other income (expense), net in fiscal 2004 was impacted by lower losses recorded for equity method investments, including our share of the DPI impairment charge recorded in fiscal 2003 previously described, partially offset by lower benefits associated with our foreign currency risk management program.

The change in the effective    tax rate was primarily due to a reduction of the valuation allowance on deferred    tax assets 

and a reduction of the income    tax liability due to the settlement of overseas tax audits, both of which    were recorded in fiscal 2003, as well      as changes in R&D tax credits.
**Applera Corporation** **Discussion of Consolidated Financial Resourcesand Liquidity**
We had cash and cash equivalents and short-term investments of $1.4 billion at June 30, 2005, and $1.3 billion at June 30, 2004. We maintain a $200 million unsecured revolving credit agreement with four banks that matures on April 15, 2010, under which there were no borrowings outstanding at June 30, 2005. This creditagreement replaced a $50 million unsecured revolving credit agreement that was scheduled to mature in April 2005, under which there were no borrowings outstanding at June 30, 2004. Cash provided by operating activities has been our primary source of funds.

We believe that existing funds, cash generated from operations, and existing sources of debt financing are more than adequate to satisfy our normal operating cash flow needs, planned capital expenditures, dividends, and potential share repurchases for the next twelve months and for the foreseeable future. However, if the CeleraGenomics group is successful in its preclinical programs, it may require additional funds to advance these programs through the regulatory process.

In July 2005, we announced that our board of directors authorized the repurchase of up to 10% of the outstanding shares of Applera Corporation-Applied Biosystems stock. This authorization supplements the Applied Biosystems group’s existing authority to replenish shares issued under its employee stock benefit plans. The newauthorization has no time restrictions and delegates to our management discretion to purchase shares at times and prices it deems appropriate through open market purchases, privately negotiated transactions, tender offers, exchange offers, or otherwise. It is anticipated that repurchases will be made from time to time depending onmarket conditions and will be funded using the Applied Biosystems group’s U.S. cash reserves and cash generated from domestic operations, as well as funds to be borrowed under our revolving credit agreement, if and when required.
(Dollar amounts in millions) 2004 **2005**  Cash and cash equivalents $507.8 **$****779.4** Short-term investments  742.9  **645.1**  Total cash and cash equivalents andshort-term investments $1,250.7 **$****1,424.5** Total debt  6.1    Working capital  1,326.6  **1,494.9** Debt to total capitalization  0.3%  **—%**  
During fiscal 2005, we repaid the remaining principal amount of the 8% senior secured convertible notes assumed in connection with the Axys acquisition of approximately $6 million. In fiscal 2004, we repurchased $10.0 million in principal amount of the outstanding convertible notes. During fiscal 2003, we purchased $18.1 millionof non-callable U.S. government obligations and substituted these government
33
Back to Contents
34Management’s    Discussion and Analysis — (Continued) Applera        Corporation   
obligations for our shares of DPI common stock that originally collateralized the notes. The government obligations were required to be held in a trust and a portion of the proceeds from the maturation of, and interestpayments on, these obligations funded the interest and principal payments under the notes. The government obligations, which matured in fiscal 2005, were classified as available-for-sale at June 30, 2004. We sold ourinvestment in DPI stock in fiscal 2004.

Cash and cash equivalents in fiscal 2005 increased as cash generated from operating activities, which included the amount received related to the previously described patent infringement lawsuit, proceeds from the sales and maturities of short-term investments, net of purchases, and proceeds from asset sales and stock issuances foremployee stock plans were only partially offset by expenditures for capital assets, debt repayment, the payment of dividends, and the repurchase of Applera-Applied Biosystems stock. Also impacting the increase in cash and cash equivalents was a $17.4 million payment made in the fourth quarter of fiscal 2004 for a patent lawsuitrelated to a discontinued product line. See Note 13 to our consolidated financial statements for further information. Net cash flows of continuing operations for the fiscal years ending June 30 were as follows:
(Dollar amounts in millions) 2003 2004 **2005**  Net cash from operating activities  $195.9  $ 194.4 **$****216.4** Net cash from investing activities  (22.1) 21.1  **52.2** Net cash from financing activities        (22.6)     (349.7) **11.4** Effect of exchange rate changeson cash  29.1  12.9  **(8.9****)**  *Operating activities*
The increase in net cash provided    from operating activities of continuing operations for fiscal 2005 compared    to fiscal 2004 resulted primarily from: higher income-related cash flows;    the timing of vendor payments; and the funding of our U.S. pension plan of    approximately $51 million in fiscal 2004. This increase was partially    offset by:  a lower reduction in accounts receivable balance in fiscal 2005    due to the timing of collections; the timing of royalty payments; an increase    in a non-trade receivable related to the Applied Biosystems group’s    joint venture activities; the timing of the receipt of dividends and distributions    from investments in unconsolidated subsidiaries;  higher severance payments    in fiscal 2005; and lower cash receipts in fiscal 2005 due to the expiration    of the Online/Information Business    customer agreements at the Celera Genomics group. We did not fund our U.S.    pension plan in fiscal 2005 as no contributions were      required under ERISA regulations.

The slight decrease in net cash    from operating activities of continuing operations for fiscal 2004 resulted    primarily from: lower income–related cash flows, which included the    amounts received in fiscal 2003 and 2004 related to previously described    patent infringement lawsuits; the funding of our U.S. pension plan of approximately    $51 million in fiscal 2004, an increase of approximately $44 million    over the funding made in fiscal 2003; the timing of royalty and vendor payments    at the Applied Biosystems group; and lower cash receipts in fiscal 2004 due    tothe continuing expiration of 

Online/Information Business    customer agreements at the Celera Genomics group. This decrease was almost    completely offset byimproved accounts receivable collections in fiscal 2004, higher turnover of inventoryin fiscal 2004, the timing of the receipt of dividends and distributions frominvestments in unconsolidated subsidiaries at the Applied Biosystems group, andlower tax and severance and relatedbenefits payments at the Applied Biosystems group in fiscal 2004.
*Investing activities*
Capital expenditures were $93.9 million in fiscal 2005, $68.4 million in fiscal 2004, and $144.4 million in fiscal 2003. Fiscal 2005 capital expenditures included $42 million to purchase several buildings at the Applied Biosystems group’s Foster City, California location. Additionally, fiscal 2005 capital expenditures included purchases ofproduction equipment, testing and laboratory equipment for the Applied Biosystems group’s facilities, as well as computer equipment purchases at the Applied Biosystems group, and equipment purchases used to support the therapeutics business and improvements made to facilities at the Celera Genomics group.

Fiscal 2004 capital expenditures included: the Applied Biosystems group’s facilities expansions in Pleasanton, California and Bedford, Massachusetts, including production equipment, testing and laboratory equipment for these facilities; as well as enterprise system upgrades; and equipment purchases used to support the therapeuticsbusiness at the Celera Genomics group.

Fiscal 2003 capital expenditures included the Applied Biosystems group’s facilities expansions in Pleasanton, California and Bedford, Massachusetts, and capital expenditures for production equipment for these facilities; improvements made to the Celera Genomics group’s therapeutics facilities and equipment purchases used to supportthe therapeutics business; and improvements to existing Celera Diagnostics’ facilities to meet FDA requirements.

In fiscal 2005, 2004, and 2003, cash was generated from the sales and maturities of available-for-sale investments, net of purchases of available-for-sale investments. Fiscal 2005 included the maturation of non-callable U.S. government obligations, pledged as collateral for the 8% senior secured convertible notes assumed in connectionwith the acquisition of Axys. A portion of the proceeds from the principal and interest received from these U.S. government obligations was used to fund the interest and principal payments under the notes. Fiscal 2003 included the purchase of investments to be used as substitute collateral for the 8% senior secured convertible notes.Fiscal 2005 included approximately $7 million in proceeds received from MDS representing the first installment related to the sale of some MALDI TOF assets, net of expenses, and in the fourth quarter of fiscal 2005, the Celera Genomics group received proceeds of $42.4 million from the sale of its facilities in Rockville, Maryland. Inthe fourth quarter of fiscal 2004, the Celera Genomics group sold its investment in DPI and received net proceeds of approximately $32 million.

Back to Contents
Management’s    Discussion and Analysis — (Continued) Applera        Corporation    *Financing activities*
In fiscal 2005, we repaid the remaining principal amount of the 8% senior secured convertible notes assumed in connection with the Axys acquisition of approximately $6 million. These notes matured in October 2004. During fiscal 2004, we repurchased $10.0 million in principal amount of these notes. Fiscal 2005 included fourdividend payments on Applera-Applied Biosystems stock compared to five payments in fiscal 2004. We repurchased the following shares of Applera-Applied Biosystems stock for the fiscal years ended June 30:
(Dollars and shares in millions) Number of SharesRepurchased PurchasePrice  2003  1.1  $  19.8 2004  15.4  325.0 **2005**                                          **0.3**  **6.1**   **Contractual Obligations**
Our significant contractual obligations at June 30, 2005, and the anticipated payments under these obligations were as follows:
  Payments by Period (Dollar amounts in millions) Total 2006 2007 –2008 2009 –2010 Thereafter  Minimum operating lease payments (a) **$****139.9** **$****35.4** **$****41.4** **$****28.4** ******$34.7** Purchase obligations (b)  **108.9**  **64.2**  **22.9**  **19.7**  **2.1** Other long-term liabilities (c)  **32.6**  **2.5**  **1.1**  **0.7**  **28.3**  Total **$****281.4** **$****102.1** **$****65.4** **$****48.8** ******$65.1**  (a)Please refer to Note 9 to our consolidated financial statements for further information.(b)Purchase obligations are entered into with various vendors in the normal course of business, and include commitments related to capital expenditures, R&D arrangements and collaborations, license agreements, and other services.(c)We have excluded deferred revenues as they have no impact on our future liquidity. We have also excluded deferred tax liabilities and obligations connected with our pension and postretirement plans and other foreign employee-related plans, as they are not contractually fixed as to timing and amount. Please see Note 4 to our consolidated financial statements for more information on these plans. 
For additional information regarding our financial obligations and commitments, see Notes 8 and 9 to our consolidated financial statements.
**Discussion of Segments’ Operations, Financial Resources and Liquidity** **Applied Biosystems Group** **Results of Continuing Operations —****2005 Compared with 2004** (Dollar amounts in millions) 2004 **2005** **% Increase/****(Decrease)**  Net revenues $1,741.1 **$****1,787.1**  **2.6%** Cost of sales  828.8  **835.5**  **0.8%**  Gross margin  912.3  **951.6**  **4.3%** SG&A expenses  465.2  **485.7**  **4.4%** R&D  214.2  **192.2**  **(10.3%****)**Employee-related charges, asset impairments and other  23.7  **31.8**  **34.2%** Asset dispositions and litigation settlements  (6.7) **(38.2****)** **470.1%**  Operating income  215.9  **280.1**  **29.7%** Gain on investments, net  11.2     **(100.0%****)**Interest income, net  12.0  **13.9**  **15.8%** Other income (expense), net  0.6  **3.2**  **433.3%**  Income before income taxes  239.7  **297.2**  **24.0%** Provision for income taxes  67.4  **60.3**  **(10.5%****)** Income from continuing operations $172.3 **$****236.9**  **37.5%**  Percentage of net revenues:          Gross margin  52.4% **53.2****%**   SG&A expenses  26.7% **27.2****%**   R&D  12.3% **10.8****%**   Operating income  12.4% **15.7****%**              Effective income tax rate  28% **20****%**    
The following table summarizes the impact of the previously described events impacting comparability included in the financial results for fiscal 2005 and 2004:
(Dollar amounts in millions) 2004 **2005**  Income (charge) included in income before income taxes $(7.1)**$****6.4** Benefit for income taxes  (1.2) **(21.1****)** 
Income from continuing operations increased in fiscal 2005 primarily due to improved gross margin and lower R&D expenses, partially offset by higher SG&A expenses. Additionally, income from continuing operations increased for fiscal 2005 due to the impact of the previously described events impacting comparability. The net effect offoreign currency on income from continuing operations was a benefit of approximately $14 million in fiscal 2005 compared to the prior fiscal year.
35
Back to Contents
36Management’s    Discussion and Analysis — (Continued) Applera        Corporation    *Revenues – overall summary*
The following table sets forth the Applied Biosystems group’s revenues by product categories for the fiscal years ended June 30:
(Dollar amounts in millions) 2004 **2005** **% Increase/****(Decrease)**  DNA Sequencing $572.5 **$****541.5**  **(5%****)***% of total revenues*  *33%*  ***30%***               Real-Time PCR/Applied Genomics  430.9  **519.7**  **21%** *% of total revenues*  *25%*  ***29%***               Mass Spectrometry  414.8  **426.8**  **3%** *% of total revenues*  *24%*  ***24%***               Core PCR & DNA Synthesis (a)  202.4  **190.7**  **(6%****)***% of total revenues*  *11%*  ***11%***               Other Product Lines  120.5  **108.4**  **(10%****)***% of total revenues*  *7%*  ***6%***     Total $1,741.1 **$****1,787.1**  **3%**  (a)The product category Core PCR & DNA Synthesis was previously referred to as Core DNA Synthesis and PCR.
The favorable effects of foreign currency increased net revenues in fiscal 2005 by approximately 2% compared to fiscal 2004. As a result, net revenues, excluding the effects of foreign currency, increased slightly compared with the prior year period.
 •Revenues in the Real-Time PCR/Applied Genomics product category increased primarily due to higher sales of consumables products. Sales of biosecurity, human identification, and TaqMan® Gene Expression Assays and Low Density Arrays products contributed significantly to the product category growth.    •Mass Spectrometry revenue growth was led by sales of our API 5000TM LC/MS/MS and 4000 Q TRAP® LC/MS/MS Systems collectively to both proteomics and small molecule customers, partially offset by lower sales of the API 4000TM LC/MS/MS System.    •DNA Sequencing revenue declined compared to the prior fiscal year, primarily as a result of decreased sales of 3730*xl*/3730 DNA Analyzers.    •The decrease in revenues from Other Product Lines for fiscal 2005 resulted primarily from lower software sales, consulting and support revenues, and instrument sales compared with the prior fiscal year.     •Revenues in the Core PCR & DNA Synthesis product category declined primarily due to decreased sales of consumables, including decreased sales to some large customers.  *Revenue by sources*
The following table sets forth the Applied Biosystems group’s revenues by sources for the fiscal years ended June 30:
(Dollar amounts in millions) 2004 **2005** **% Increase/****(Decrease)**  Instruments $841.0 **$****803.5**  **(4.5%****)**Consumables  609.2  **681.5**  **11.9%** Other sources  290.9  **302.1**  **3.9%**  Total $1,741.1 **$****1,787.1**  **2.6%**   *Instruments*
For fiscal 2005, instrument revenues decreased from the prior fiscal year primarily due to reduced sales of the Applied Biosystems 3730*xl*/3730 DNA Analyzers and ABI PRISM® 3100 and 3100-Avant Genetic Analyzers in the DNA Sequencing product category. This decrease was partially offset by higher sales of the Applied Biosystems3130 line of Genetic Analyzers, also in the DNA Sequencing product category, and higher sales in the Real-Time PCR/Applied Genomics product category, resulting primarily from the Applied Biosystems 7300 Real-Time and 7500 Real-Time PCR Systems, partially offset by lower sales of the ABI PRISM® 7000 System. In the MassSpectrometry category, sales of the API 5000TM LC/MS/MS System, which began to sell commercially in the third quarter of fiscal 2005, and higher sales of the 4000 Q Trap® LC/MS/MS System were partially offset by reduced sales of the API 4000TM LC/MS/MS System.
*Consumables*
The increase in consumables sales in fiscal 2005 compared to fiscal 2004 primarily reflected the strength of Real-Time PCR/Applied Genomics consumables sales. This increase resulted primarily from higher sales of biosecurity products, which included assays for the U.S. Postal Service Biohazard Detection System developed through acollaborative agreement with Cepheid as subcontractor to Northrop Grumman, human identification products used in forensics, TaqMan® Gene Expression Assays and Low Density Arrays, and other consumables products. This increase was partially offset by lower sales of Core PCR & DNA Synthesis consumables.
*Other sources*
Revenues from other sources, which included service and support, royalties, licenses, and contract research, increased for fiscal 2005 from fiscal 2004 primarily due to higher service revenues, partially offset by lower consulting and support and testing revenues. Included in revenues for fiscal 2005 was a $2.5 million non-recurringlicensing fee for some mass spectrometry technology.

Back to Contents
Management’s    Discussion and Analysis — (Continued) Applera        Corporation   *Revenues by geographic area*
The following table sets forth the Applied Biosystems group’s revenues by geographic area for the fiscal years ended June 30:
(Dollar amounts in millions) 2004 **2005** **% Increase/****(Decrease)**  United States $809.2 **$****781.4**  **(3.4%****)**Europe  537.8  **605.0**  **12.5%** Asia Pacific  333.0  **333.5**  **0.2%** Latin America and other markets  61.1  **67.2**  **10.0%**  Total $1,741.1 **$****1,787.1**  **2.6%**  
The favorable effects of foreign currency increased revenues by approximately 4% in Europe and 2% in Asia Pacific during fiscal 2005 compared to fiscal 2004. Revenues increased in Europe, primarily as a result of continued strong sales of the Applied Biosystems 3130 line of Genetic Analyzers and the Applied Biosystems 7300 and7500 Real-Time PCR Systems and increased sales of human identification products. During fiscal 2005, revenues from Japan declined approximately 4% compared to the prior fiscal year, net of a positive impact from foreign currency of approximately 2%. Factors contributing to this decline included the continued shift of life scienceresearch funding to areas outside of sequencing and constrained spending due to anticipated lower growth in the fiscal 2006 government budget for life science research. Sales in the U.S. were negatively affected by reduced sales of DNA analyzers to large U.S. genome centers.

Gross margin, as a percentage of net revenues, increased for fiscal 2005 over the prior fiscal year due primarily to the favorable effects of foreign currency and a decrease in both software amortization and warranty costs. Service margins improved for fiscal 2005 primarily driven by growth in volume of service contracts, as well asimproved pricing on selective billable parts, labor, and service contracts. Strong growth in some higher margin products within the sequence detection systems, human identification, and assays product lines helped minimize the effect of the decline in DNA Sequencing instruments.

SG&A expenses for fiscal 2005 increased compared to fiscal 2004 due primarily to: higher employee-related and outside consultant costs of approximately $14 million; the unfavorable effects of foreign currency of approximately $9 million; and increased spending of approximately $6 million on both the development of, andenhancements to, the Applied Biosystems Portal and the strategic business review. The increase in fiscal 2005 was partially offset by lower litigation-related legal expenses of approximately $8 million and lower insurance and pension costs of approximately $8 million. A significant portion of the Applied Biosystems group’s legal feesrelated to defending the Applied Biosystems group’s intellectual property assets.

R&D expenses decreased in fiscal 2005 from fiscal 2004 as a result of the previously announced realignment of the R&D product portfolio and the integration of the MALDI TOF product line into the Applied Biosystems/MDS Sciex Instruments joint venture with MDS Inc.

Interest income, net increased during fiscal 2005 compared to the prior fiscal year primarily due to higher average interest rates and higher average cash and cash equivalents.

Other income (expense), net in fiscal 2005 included higher benefits associated with our foreign currency risk management program, partially offset by lower other non-operating income in fiscal 2005 in comparison to the prior fiscal year.

The decrease in the effective tax rate for fiscal 2005 compared to fiscal 2004 was primarily due to benefits related to R&D tax credit carryforwards, expected results of Canadian examinations, and settlement of some U.K. tax matters in fiscal 2005.
**Results of Continuing Operations —****2004 Compared with 2003** (Dollar amounts in millions) 2003 2004 % Increase/(Decrease)  Net revenues $1,682.9 $1,741.1  3.5% Cost of sales  833.5  828.8  (0.6%) Gross margin  849.4  912.3  7.4% SG&A expenses  410.3  465.2  13.4% R&D  221.2  214.2  (3.2%)Employee-related charges, asset impairments and other  20.0  23.7  18.5% Asset dispositions and litigation settlements  (25.8) (6.7) (74.0%) Operating income  223.7  215.9  (3.5%)Gain (loss) on investments, net  (2.3) 11.2  (587.0%)Interest income, net  12.7  12.0  (5.5%)Other income (expense), net  4.6  0.6  (87.0%) Income before income taxes  238.7  239.7  0.4% Provision for income taxes  39.1  67.4  72.4%  Income from continuing operations $199.6 $172.3  (13.7%) Percentage of net revenues:          Gross margin  50.5% 52.4%   SG&A expenses  24.4% 26.7%   R&D  13.1% 12.3%   Operating income  13.3% 12.4%              Effective income tax rate  16% 28%    
The following table summarizes the impact of the previously described events impacting comparability included in the financial results for fiscal 2004 and 2003:
(Dollar amounts in millions) 2003 2004  Charge included in income before income taxes  $  (3.7) $(7.1)Benefit for income taxes  (28.7) (1.2) 
Income from continuing operations decreased for fiscal 2004 primarily due to the impact of the previously described items impacting comparability, as well as due to higher SG&A expenses. This decrease was partially offset by revenue growth from all three sources: instruments, consumables, and other sources, particularly in MassSpectrometry instruments and Real-Time PCR/Applied Genomics consumables. The net effect of foreign currency on income from continuing operations in fiscal 2004 was a benefit of approximately $8 million compared to fiscal 2003.
37
Back to Contents
38Management’s    Discussion and Analysis — (Continued) Applera        Corporation   *Revenues – overall summary*
The following table sets forth the Applied Biosystems group’s revenues by product categories for the fiscal years ended June 30:
(Dollar amounts in millions) 2003 2004 % Increase/  (Decrease)  DNA Sequencing $631.7 $572.5  (9%)*% of total revenues*  *37%*  *33%*               Real-Time PCR/Applied Genomics (a)  352.5  430.9  22% *% of total revenues*  *21%*  *25%*               Mass Spectrometry (b)  355.1  414.8  17% *% of total revenues*  *21%*  *24%*               Core PCR & DNA Synthesis (c)  202.9  202.4  —% *% of total revenues*  *12%*  *11%*               Other Product Lines (a) (b)  140.7  120.5  (14%)*% of total revenues*  *9%*  *7%*     Total $1,682.9 $1,741.1  3%  (a)A reclassification of $0.6 million was made from Other Product Lines to Real-Time PCR/Applied Genomics in fiscal 2003.(b)A reclassification of $5.3 million was made from Other Product Lines to Mass Spectrometry in fiscal 2003. (c)The product category Core PCR & DNA Synthesis was previously referred to as Core DNA Synthesis and PCR.
The favorable effects of foreign currency increased net revenues in fiscal 2004 by approximately 2% compared to fiscal 2003. As a result, net revenues, excluding the effects of foreign currency, slightly increased as compared to the prior fiscal year. Growth in the Real-Time PCR/Applied Genomics and Mass Spectrometry productcategories were offset by a decline in sales of the Applied Biosystems 3730*xl* DNA Analyzer to large-scale genome centers and the ABI PRISM® 3100 Genetic Analyzer in the DNA Sequencing category.

The decrease in revenues from Other Product Lines for fiscal 2004 resulted primarily from lower software sales and chromatography instrument sales compared with the prior fiscal year.
*Revenue by sources*
The following table sets forth the Applied Biosystems group’s revenues by source for the fiscal years ended June 30:
(Dollar amounts in millions) 2003 2004 % Increase/  (Decrease)  Instruments $829.2 $841.0  1.4% Consumables  575.4  609.2  5.9% Other sources  278.3  290.9  4.5%  Total $1,682.9 $1,741.1  3.5%   *Instruments*
Revenues from instrument sales    increased in fiscal 2004 as growth in the Mass Spectrometry, led by the 4000    Q TRAP® LC/MS/MS System, and Real-Time PCR/Applied Genomics    product categories were partially offset by a decline in sales of the Applied    Biosystems 3730*xl* DNA Analyzer to large-scale genome centers and the    ABI PRISM®3100 Genetic Analyzer in the DNA Sequencing category. The increase in instrumentsales for the Real-Time PCR/Applied Genomics product category 

resulted primarily  from the introduction of the newly launched Applied Biosystems 7300 Real-Time  and 7500 Real-Time PCR Systems, partially offset by lower sales of the ABI    Prism® 7000system.
*Consumables*
In fiscal 2004, consumables sales increased primarily due to: growth in sales of TaqMan® reagents; higher sales of human identification products used in forensics; and the increasing adoption of the Applied Biosystems TaqMan® Gene Expression Assays products for gene expression and Applied Biosystems TaqMan® SNP GenotypingAssays products for genotyping experiments (both formerly known as Assays-on-DemandTM products) in both basic research and drug discovery and development. Partially offsetting this increase were declines in sales of DNA sequencing consumables.
*Other sources*
Revenues from other sources, which included service and support, royalties, licenses, and consulting, increased for fiscal 2004 primarily from higher service and support revenues, partially offset by lower technology licensing fees.
*Revenues by geographic area*
The following table sets forth the Applied Biosystems group’s revenues by geographic area for the fiscal years ended June 30:
(Dollar amounts in millions) 2003 2004 % Increase/  (Decrease)  United States $824.8 $809.2  (1.9%)Europe  474.9  537.8  13.2% Asia Pacific  333.1  333.0  (—%)Latin America and other markets  50.1  61.1  22.0%  Total $1,682.9 $1,741.1  3.5%  
The favorable effects of foreign currency increased revenues by approximately 6% in Europe and 2% in Asia Pacific during fiscal 2004 compared to fiscal 2003. European revenues increased due primarily to strong sales of the 4000 Q TRAP System and Real-Time PCR/Applied Genomics instruments and consumables. Partially offsettingthe increase in European revenues was an order from a large-scale genome center for a substantial number of 3730*xl* instrument systems in fiscal 2003 that was not repeated in fiscal 2004. During fiscal 2004, revenues in Japan declined 5% compared to the prior fiscal year, net of a positive impact from foreign currency ofapproximately 2%. This decline primarily resulted from a disruption in traditional customer purchasing patterns due to the transition of the Applied Biosystems group’s university customers to Independent Administrative Agency status. Revenues in the U.S. decreased primarily due to weaker DNA sequencing sales to large genome centers.

Gross margin, as a percentage of net revenues, increased for fiscal 2004 due primarily to: additional costs related to changes in the oligo manufacturing processes made in the fourth quarter of fiscal 2003; a shift in product mix towards newer, higher margin products such as the 4000 Q TRAP**,**human identification products used inforensics, and the Applied Biosystems 7300 Real-Time and 7500 Real-Time PCR

 

 

 

 

Back to Contents
Management’s    Discussion and Analysis — (Continued) Applera        Corporation   
Systems; volume increases; operational efficiencies; and the favorable effects of foreign currency. In addition, fiscal 2003 gross margin was lower due to the previously discussed asset impairment charges.

SG&A expenses, as a percentage    of net revenues, increased over fiscal 2003 due primarily to: increased litigation-related    legal expenses of approximately $19 million; increased spending of approximately    $12 million on the development of, and enhancements to, the Applied    Biosystems Portal; and increased insurance and pension costs  of approximately    $6 million. Partially offsetting this increase were lower employee-related    costs due to the reduction in personnel announced in December 2002. In addition,    the unfavorable effects of foreign currency increased fiscal 2004 SG&A    expenses by approximately $15 million. A significant portion of the    Applied Biosystemsgroup’s increased litigation-related legal expenses related to defendingthe Applied Biosystems group’s intellectual property assets.

R&D expenses slightly decreased in fiscal 2004 from the prior fiscal year, resulting primarily from the completion of funding for the Applera Genomics Initiative and lower employee-related costs due to a reduction in personnel announced in December 2002, partially offset by support for new product introductions.

Interest income, net decreased during fiscal 2004 compared to the prior fiscal year primarily due to lower average interest rates, partially offset by higher average cash and cash equivalents balances during fiscal 2004.

Other income (expense), net decreased in fiscal 2004 primarily due to lower benefits associated with our foreign currency risk management program.

The increase in the effective tax rate for fiscal 2004 was primarily due to a reduction of the valuation allowance on deferred tax assets and a reduction of the income tax liability due to the settlement of overseas tax audits, both of which were recorded in fiscal 2003.
**Applied Biosystems Group** **Discussion of Financial Resources and Liquidity**
The Applied Biosystems group had cash and cash equivalents and short-term investments of $756.2 million at June 30, 2005, and $504.9 million at June 30, 2004. We maintain a $200 million unsecured revolving credit agreement with four banks that matures on April 15, 2010, under which there were no borrowings outstanding atJune 30, 2005. This credit agreement replaced a $50 million unsecured revolving credit agreement that was scheduled to mature in April 2005, under which there were no borrowings outstanding at June 30, 2004. Cash provided by operating activities has been the Applied Biosystems group’s primary source of funds.

We believe that existing funds,    cash generated from operations, and existing sources of debt financing are    more than adequate to satisfy the Applied Biosystems group’s normal    operating cash flow needs, planned capital expenditures, its share of funding    of the Celera Diagnostics 

joint venture, dividends, and    potential share repurchasesfor the next twelve months and for the foreseeable future.

In July 2005, we announced that our board of directors authorized the repurchase of up to 10% of the outstanding shares of Applera Corporation-Applied Biosystems stock. This authorization supplements the Applied Biosystems group’s existing authority to replenish shares issued under its employee stock benefit plans. The newauthorization has no time restrictions and delegates to our management discretion to purchase shares at times and prices it deems appropriate through open market purchases, privately negotiated transactions, tender offers, exchange offers, or otherwise. It is anticipated that repurchases will be made from time to time depending onmarket conditions and will be funded using the Applied Biosystems group’s U.S. cash reserves and cash generated from domestic operations, as well as funds to be borrowed under our revolving credit agreement, if and when required.

We manage the investment of surplus cash and the issuance and repayment of short and long-term debt for the Applied Biosystems group and the Celera Genomics group on a centralized basis and allocate activity within these balances to the group that uses or generates such resources.
(Dollar amounts in millions) 2004 **2005**  Cash and cash equivalents $456.3 **$****756.2** Short-term investments  48.6     Total cash and cash equivalents and short-term investments $504.9 **$****756.2** Working capital  592.0  **844.1**  
Cash and cash equivalents in fiscal 2005 increased as cash generated from operating activities, which included the amount received related to the previously described patent infringement lawsuit, proceeds from the sale of investments, net of purchases, and proceeds from asset sales and stock issuances for employee stock plans wereonly partially offset by expenditures for capital assets, the funding of the Celera Diagnostics joint venture, the payment of dividends, and the repurchase of Applera–Applied Biosystems stock. Also impacting the increase in cash and cash equivalents was a $17.4 million payment made in the fourth quarter of fiscal 2004 for a patentlawsuit related to a discontinued product line. See Note 13 to our consolidated financial statements for further information. Net cash flows of continuing operations for the fiscal years ended June 30 were as follows:
(Dollar amounts in millions) 2003 2004 **2005**  Net cash from operating activities $279.4 $289.3 **$****334.3** Net cash from investing activities  (111.6) (76.9) **(33.8****)**Net cash from financing activities  (40.3) (345.5) **8.0** Effect of exchange rate changeson cash  29.1  12.9  **(8.9****)**  *Operating activities*
Net cash from operating activities of continuing operations for fiscal 2005 was $45.0 million higher than in fiscal 2004. This increase resulted primarily from: higher income-related cash flows; the timing of vendor payments; and the funding of our U.S. pension plan of approximately $51 million in fiscal 2004.
39
Back to Contents
40Management’s    Discussion and Analysis — (Continued) Applera        Corporation   
This increase was partially offset by: a lower reduction in accounts receivable balance in fiscal 2005 due to the timing of collections; the timing of royalty payments; an increase in a non-trade receivable related to itsjoint venture activities; the timing of the receipt of dividends and distributions from investments in unconsolidated subsidiaries; and higher severance payments in fiscal 2005. We did not fund our U.S. pension plan infiscal 2005 as no contributions were required under ERISA regulations.

Net cash from operating activities of continuing operations for fiscal 2004 was $9.9 million higher than in fiscal 2003. This increase resulted primarily from: improved accounts receivable collections in fiscal 2004; higher turnover of inventory in fiscal 2004; the timing of the receipt of dividends and distributions from investments inunconsolidated subsidiaries; and lower tax and severance and related benefits payments in fiscal 2004. This increase was partially offset by: lower income-related cash flows; the funding of our U.S. pension plan of approximately $51 million in fiscal 2004, an increase of approximately $44 million over the funding made in fiscal 2003;and the timing of royalty and vendor payments.

The Applied Biosystems group’s days sales outstanding was 56 days at June 30, 2005, compared to 61 days at June 30, 2004, and 75 days at June 30, 2003. Inventory on hand was 2.4 months at June 30, 2005, 2.8 months at June 30, 2004, and 3.3 months at June 30, 2003.
*Investing activities*
Capital expenditures were $84.6 million in fiscal 2005, $60.4 million in fiscal 2004, and $131.9 million in fiscal 2003. In fiscal 2005, the Applied Biosystems group spent $42 million to purchase several buildings at its Foster City, California location. Additionally, fiscal 2005 capital expenditures included purchases of productionequipment, testing and laboratory equipment for its facilities, as well as computer equipment. Fiscal 2004 capital expenditures included approximately $12 million for the expansion of facilities, primarily in Pleasanton, California and Bedford, Massachusetts, as well as purchases of production equipment, testing and laboratory equipmentfor these facilities, and $13 million for enterprise system upgrades. Fiscal 2003 capital expenditures included approximately $87 million for the expansion of facilities, primarily in Pleasanton, California and Bedford, Massachusetts, as well as purchases of production, tool and testing equipment for these facilities.

In fiscal 2005 and fiscal 2003, cash was generated from the sales and maturities of available-for-sale investments, net of purchases of available-for-sale investments. In fiscal 2004, however, purchases of available-for-sale investments exceeded the proceeds received from the sales and maturities of available-for-sale investments. For thethree fiscal years ended June 30, 2005, the majority of the amount reported in investments in joint venture and other related to the funding of the Celera Diagnostic joint venture. Fiscal 2005 proceeds from the sale of assets included approximately $7.0 million received from MDS, representing the first installment related to the sale ofsome MALDI TOF assets, net of expenses.
*Financing activities*
Fiscal 2005 included four dividend    payments on Applera-Applied Biosystems stock compared to five payments in    fiscal 2004. We repurchased the following shares of Applera–Applied    Biosystems stock for the fiscal years ended June 30:
(Dollars and shares in millions) Number of Shares  Repurchased Purchase  Price  2003  1.1 $19.8 2004                             15.4  325.0 **2005**  **0.3**  **6.1**   **Celera Genomics Group** **Results of Operations —****2005 Compared with** **2004** (Dollar amounts in millions)  2004  **2005** **% Increase/****(Decrease)**  Net revenues $60.1 **$****31.0**  **(48.4%****)**Cost of sales  10.8  **6.0**  **(44.4%****)**R&D  101.4  **103.5**  **2.1%** SG&A expenses  32.4  **26.2**  **(19.1%****)**Amortization of intangible assets  2.9  **2.9**    Employee-related charges, asset impairments and other  18.1  **2.6**  **(85.6%****)** Operating loss  (105.5) **(110.2****)** **4.5%** Gain on investments, net  24.3     **(100.0%****)**Interest income, net  10.8  **14.9**  **38.0%** Other income (expense), net  1.9  **1.3**  **(31.6%****)**Loss from joint venture  (42.0) **(29.9****)** **(28.8%****)**       Loss before income taxes  (110.5) **(123.9****)** **12.1%** Benefit for income taxes  53.0  **46.8**  **(11.7%****)** Net loss $(57.5)**$****(77.1****)** **34.1%**  Effective income tax benefit rate  48%  **38%**     
The following table summarizes    the impact of the previously described events impacting comparability included    in the financial results for fiscal 2005 and 2004:
(Dollar amounts in millions) 2004 **2005**  Income (charge) included in income beforeincome taxes $6.7 **$****(4.3****)**Provision (benefit) for income taxes  2.4  **(3.7****)** 
The higher net loss in fiscal 2005 compared to fiscal 2004 primarily resulted from lower net revenues, the decrease in the effective tax benefit rate, and the impact of previously described events impacting comparability, partially offset by lower SG&A expenses, higher net interest income, and lower losses for the Celera Diagnostics jointventure in fiscal 2005.

Revenues decreased for fiscal 2005 compared to fiscal 2004 primarily as a result of the expiration of Online/Information Business customer agreements and the discontinuation of most of the operations of Paracel during the first quarter of fiscal 2005. Under the terms of the marketing and distribution agreement between the CeleraGenomics group and the Applied Biosystems group, the Celera Genomics group has not sought any new customers for its Celera Discovery SystemTM (“CDS”) and related information products and services since June 2002, and therefore, its revenues from these products and services have declined as expected. The CDS online platformis an integrated source of information based on the

Back to Contents
Management’s    Discussion and Analysis — (Continued) Applera        Corporation   
human genome and other biological and medical sources. Substantially all of the existing customer contracts terminated prior to June 30, 2005.

Cost of sales in fiscal 2005 included $1.7 million related to the impairment of Paracel inventory.

R&D expenses increased in fiscal 2005 compared to fiscal 2004 primarily due to increased expenditures to support preclinical development activities and the hiring of additional therapeutic R&D personnel. These increases were partially offset by lower Online/Information Business R&D expenses and the discontinuation of most of theoperations of Paracel. R&D expenses for fiscal 2005 included $0.7 million of expense related to the acceleration of the vesting of substantially all of the unvested stock options relating to Applera-Celera Genomics stock. R&D expenses for fiscal 2004 included a $1.8 million write-off of building improvements related to a reconfigurationof space in the Rockville, Maryland facility.

SG&A expenses decreased in fiscal 2005 compared to the prior fiscal year primarily due to the discontinuation of most of the operations of Paracel and lower Online/Information Business expenses resulting from lower employee-related costs and bad debt expense, partially offset by higher legal expenses.

Interest income, net increased during fiscal 2005 compared to fiscal 2004 primarily due to higher average interest rates, partially offset by lower average cash and cash equivalents and short-term investments.

The decrease in other income, net for fiscal 2005 compared to fiscal 2004 primarily resulted from higher non-recurring cash receipts in fiscal 2004 and the write-down in fiscal 2005 of an investment acquired as part of the Axys acquisition, partially offset by losses recorded from equity method investments in fiscal 2004.

The decrease in the effective income tax benefit rate for fiscal 2005 compared to the prior fiscal year was primarily attributable to a reduction of the valuation allowance in fiscal 2004, partially offset by higher R&D tax credits in fiscal 2005.
**Results of Operations —****2004 Compared with 2003** (Dollar amounts in millions) 2003 2004 % Increase/  (Decrease)  Net revenues $88.3 $60.1  (31.9%)Cost of sales  14.1  10.8  (23.4%)R&D  117.8  101.4  (13.9%)SG&A expenses  33.3  32.4  (2.7%)Amortization of intangible assets  5.9  2.9  (50.8%)Employee-related charges, asset impairments and other     18.1     Operating loss  (82.8) (105.5) 27.4% Gain (loss) on investments, net  (0.3) 24.3    Interest income, net  16.9  10.8  (36.1%)Other income (expense), net  (16.9) 1.9  (111.2%)Loss from joint venture  (51.2) (42.0) (18.0%) Loss before income taxes  (134.3) (110.5) (17.7%)Benefit for income taxes  52.4  53.0  1.1%  Net loss $(81.9)$(57.5) (29.8%) Effective income tax benefit rate  39%  48%     
The following table summarizes the impact of the previously described events impacting comparability included in the financial results for fiscal 2004 and 2003:
(Dollar amounts in millions) 2003 2004  Income (charge) included in income beforeincome taxes $(15.1)$6.7 Provision (benefit) for income taxes  (5.9) 2.4  
The lower net loss in fiscal 2004 in comparison to fiscal 2003 resulted primarily from: lower R&D expenses in fiscal 2004; the gain on the sale of the DPI investment in fiscal 2004; the loss on the DPI equity method investment in fiscal 2003, which included our share of an impairment charge; and lower losses for the Celera Diagnosticjoint venture in fiscal 2004. Partially offsetting these items were lower revenues and net interest income and the loss on the planned sale of one of our facilities in fiscal 2004.

Revenues decreased in fiscal 2004 primarily as a result of the continuing expiration of Online/Information Business customer agreements.

R&D expenses decreased in fiscal 2004 compared to the prior fiscal year due primarily to the completion of the Applera Genomics Initiative and cost reductions in the Online/Information Business. These reductions were partially offset by higher R&D expenditures for therapeutic programs.

SG&A expenses slightly decreased in fiscal 2004 compared to the prior fiscal year primarily due to lower employee-related costs and other services costs. Corporate expenses and administrative shared services allocated to the Celera Genomics group were $0.5 million lower for fiscal 2004 compared with fiscal 2003 due primarily tolower software costs and employee benefit-related expenses.

Amortization expense of intangible assets decreased in fiscal 2004 due to the completion of the amortization of some intangible assets acquired as part of the acquisition of Axys in fiscal 2002.

Interest income, net decreased during fiscal 2004 compared to the prior year period primarily due to lower average interest rates and, to a lesser extent, lower average cash and cash equivalents and short-term investments.

Other income (expense), net for fiscal 2004 included a non-recurring cash receipt of $2.0 million related to the March 2002 sale of the Celera Genomics group’s animal genomics and genotyping business, partially offset by losses recorded from equity method investments in fiscal 2004. Other income (expense), net for fiscal 2003included the loss for the DPI equity method investment, which included our share of the impairment charge previously described.

The increase in the effective income tax benefit rate for fiscal 2004 was primarily attributable to changes in R&D tax credits and a reduction in the valuation allowance.
41
Back to Contents
42Management’s    Discussion and Analysis — (Continued) Applera        Corporation   **Celera Genomics Group** **Discussion of Financial Resources and Liquidity**
The Celera Genomics group had cash and cash equivalents and short-term investments of $668.3 million at June 30, 2005, and $745.8 million at June 30, 2004. We maintain a $200 million unsecured revolving credit agreement with four banks that matures on April 15, 2010, under which there were no borrowings outstanding atJune 30, 2005. This credit agreement replaced a $50 million unsecured revolving credit agreement that was scheduled to mature in April 2005, under which there were no borrowings outstanding at June 30, 2004.

We believe that existing funds and existing sources of debt financing are more than adequate to satisfy the Celera Genomics group’s normal operating cash flow needs, planned capital expenditures, and its share of funding of the Celera Diagnostics joint venture for the next twelve months and for the foreseeable future. However, if theCelera Genomics group is successful in its preclinical programs, it may require additional funds to advance these programs through the regulatory process.

We manage the investment of surplus cash and the issuance and repayment of short and long-term debt for the Celera Genomics group and the Applied Biosystems group on a centralized basis and allocate activity within these balances to the group that uses or generates such resources.
(Dollar amounts in millions) 2004 **2005**  Cash and cash equivalents $51.5 **$****23.2** Short-term investments  694.3  **645.1**  Total cash and cash equivalents and       short-term investments $745.8 **$****668.3** Total debt  6.1    Working capital  726.8  **635.9** Debt to total capitalization  0.6%  **—%**  
During fiscal 2005, we repaid the remaining principal amount of the 8% senior secured convertible notes assumed in connection with the Axys acquisition of approximately $6 million. In fiscal 2004, we repurchased $10.0 million in principal amount of the outstanding convertible notes. During fiscal 2003, we purchased $18.1 millionof non-callable U.S. government obligations and substituted these government obligations for our shares of DPI common stock that originally collateralized the notes. The government obligations were required to be held in a trust and a portion of the proceeds from the maturation of, and interest payments on, these obligations fundedthe interest and principal payments under the notes. The government obligations, which matured in fiscal 2005, were classified as available-for-sale at June 30, 2004. We sold our investment in DPI stock in fiscal 2004.

Cash and cash equivalents for fiscal 2005 decreased as expenditures for operations, capital assets, the funding of the Celera Diagnostics joint venture, and debt repayment were only partially offset by proceeds from the sales and maturities of short-term investments, sale of assets and proceeds from stock issuances. Net cash flows forthe fiscal years ended June 30 were as follows:
(Dollar amounts in millions) 2003 2004 **2005**  Net cash from operating activities $(31.9)$(53.9)**$****(87.6****)**Net cash from investing activities  37.9  57.1  **55.7** Net cash from financing activities  17.7  (4.3) **3.4**   *Operating activities*
Net cash used by operating activities for fiscal 2005 was $33.7 million higher than in fiscal 2004. Net cash used by operating activities for fiscal 2004 was $22.0 million higher than in fiscal 2003. The higher use of cash in both periods resulted primarily from higher net cash operating losses and lower cash receipts due to the expirationof Online/Information Business customer agreements.
*Investing activities*
Capital expenditures were $7.4 million in fiscal 2005 and $6.0 million in fiscal 2004 and fiscal 2003. Capital expenditures in all three fiscal years consisted primarily of equipment purchases used to support our therapeutics business and improvements made to our therapeutics facilities.

In fiscal 2005, 2004, and 2003, cash was generated from the sales and maturities of available-for-sale investments, net of purchases of available-for-sale investments. Fiscal 2005 included the maturation of non-callable U.S. government obligations, pledged as collateral for the 8% senior secured convertible notes assumed in connectionwith the acquisition of Axys. A portion of the proceeds from the principal and interest received from these U.S. government obligations was used to fund the interest and principal payments under the notes. Fiscal 2003 included the purchase of investments to be used as substitute collateral for the 8% senior secured convertible notes.Cash paid in connection with investments in joint venture and other, all of which related to the funding of the Celera Diagnostics joint venture, was $27.3 million in fiscal 2005, $38.7 million in fiscal 2004, and $52.3 million in fiscal 2003. In the fourth quarter of fiscal 2005, the Celera Genomics group received proceeds of$42.4 million from the sale of its facilities in Rockville, Maryland. In the fourth quarter of fiscal 2004, the Celera Genomics group sold its investment in DPI and received net proceeds of approximately $32 million.
*Financing activities*
During fiscal 2005, we repaid the remaining principal amount of the 8% senior secured convertible notes assumed in connection with the Axys acquisition of approximately $6 million. These notes matured in October 2004. In fiscal 2004, we repurchased $10.0 million in principal amount of these notes.

Back to Contents
Management’s    Discussion and Analysis — (Continued) Applera        Corporation   **Celera Diagnostics** **Results of Operations —****2005 Compared with 2004** (Dollar amounts in millions) 2004 **2005** **% Increase/****(Decrease)**  Net revenues $36.7 **$****35.5**  **(3.3%****)**Cost of sales  20.1  **13.9**  **(30.8%****)**R&D  43.9  **37.9**  **(13.7%****)**SG&A expenses  14.7  **13.6**  **(7.5%****)** Operating loss $(42.0)**$****(29.9****)** **(28.8%****)** **Supplemental information**          Equalization revenue, net $23.3 **$****19.1**    End-user alliance sales for all products sold primarily      through Abbott Laboratories  45.9  **61.7**     
In June 2002, Celera Diagnostics and Abbott Laboratories announced a long-term strategic alliance to develop, manufacture and market a broad range of *in vitro* molecular diagnostic products, including third party products brought into the alliance. On October 1, 2002, sales responsibilities for products manufactured by CeleraDiagnostics were largely transferred to Abbott.

Reported revenues decreased for fiscal 2005 compared to fiscal 2004 due to lower equalization payments and reduced revenue related to shipments to Abbott. This decrease was partially offset by an increase in technology-related revenue, including license fees and royalties from Cepheid and recognition of milestone payments fromMerck associated with its target and marker collaboration related to Alzheimer’s disease. Reported revenues differ from end-user sales and consist primarily of equalization payments from Abbott resulting from the profit-sharing arrangement between Abbott and Celera Diagnostics, and technology-related revenues for fiscal 2005.Fluctuation in equalization payments can lead to variability in reported revenues, gross margins and cash use from period to period due to differences in end-user sales of alliance products and operating expenses between the alliance partners.

End-user alliance sales for all products sold primarily through Abbott increased for fiscal 2005 compared to the prior fiscal year primarily due to increased sales of HCV genotyping and viral load analyte specific reagents (“ASRs”), products for Human Leukocyte Antigen (“HLA”) typing, and the ViroSeqTM product. HLA-typing productsdetect specific DNA sequences in several HLA genes. The ViroSeq product includes reagents for identifying key mutations of the Human Immunodeficiency Virus (“HIV-1”) genome.

R&D expenses decreased for fiscal 2005 compared to fiscal 2004 due to decreased spending in discovery and product development programs and for the development of an instrument platform for the alliance. R&D expenses included $1.8 million for fiscal 2005 and $4.9 million for fiscal 2004 of lease payments on instruments andpurchases of consumables from the Applied Biosystems group.

SG&A expenses decreased for fiscal 2005 compared to fiscal 2004 primarily due to a $1.6 million charge recorded in fiscal 2004 related to a facility lease agreement.
**Results of Operations —****2004 Compared with 2003** (Dollar amounts in millions) 2003 2004 % Increase/  (Decrease)  Net revenues $20.8 $36.7  76.4% Cost of sales  11.3  20.1  77.9% R&D  49.0  43.9  (10.4%)SG&A expenses  11.7  14.7  25.6%  Operating loss $(51.2)$(42.0) (18.0%) **Supplemental information**          Equalization revenue, net $10.5 $23.3    End-user alliance sales for all products sold primarily through Abbott Laboratories  20.5  45.9     
The majority of reported net revenues for fiscal 2004 and 2003 consisted of equalization payments from Abbott under the profit-sharing arrangement between Abbott and Celera Diagnostics. Reported net revenues for fiscal 2004 also included technology-related revenues from the patent license agreement with Cepheid. The increase inequalization and technology-related payments primarily accounted for the increase in net revenues. Fluctuation in these equalization payments can lead to fluctuation in both reported revenues and gross margins from period to period due to differences in end-user sales of alliance products and operating expenses between the alliancepartners.

End-user alliance sales for all products sold primarily through Abbott increased mostly due to higher demand for cystic fibrosis ASRs. Also impacting the results for fiscal 2004 was growth in products sourced from third parties, including products for HLA typing, and infectious disease testing products. The results for fiscal 2003 included$3.9 million of end-user sales of products manufactured by Celera Diagnostics and sold by the Applied Biosystems group during the first quarter of fiscal 2003.

Cost of sales increased in fiscal 2004 due to the increase in end-user alliance sales.

R&D expenses decreased in fiscal 2004 as a result of the completion of the Applera Genomics Initiative, partially offset by increased spending for discovery programs and product development.

SG&A expenses for fiscal 2004 increased in comparison to fiscal 2003 due to a $1.6 million charge in fiscal 2004 related to a facility lease agreement, as well as due to higher employee-related costs and depreciation expense.

Net revenues included $3.3 million of diagnostic products sold to the Applied Biosystems group during fiscal 2003 under a distribution arrangement. R&D expenses included $4.9 million of lease payments on instruments and purchases of consumables from the Applied Biosystems group for fiscal 2004 and 2003.
43
Back to Contents
44Management’s        Discussion and Analysis — (Continued) Applera        Corporation   **Market Risks**
We are exposed to potential loss from exposure to market risks represented principally by changes in currency rates, interest rates, and equity prices.

We operate internationally, with manufacturing and distribution facilities in various countries throughout the world. For fiscal 2005, 2004, and 2003, we derived approximately 50% to 55% of our revenues from countries outside of the U.S., while a significant portion of the related costs were based in U.S. dollars. We anticipate thatour future results will continue to be affected by market risk, including changes in political and economic conditions in foreign markets and fluctuations in currency rates, primarily the euro, Japanese yen, and British pound.

Our foreign currency risk management strategy uses derivative instruments to hedge various foreign currency forecasted revenues and intercompany transactions and to offset the impact of changes in currency rates on various foreign currency-denominated assets and liabilities. The principal objective of this strategy is to minimize therisks and/or costs associated with our global financing and operating activities. We use forward, option, and range forward contracts to manage our foreign currency exposures. Forward contracts commit us to buy or sell a currency at a contracted rate on a specific future date. Option contracts grant us the right, but not the obligation,to buy or sell a currency at a certain rate by or on a specific future date in exchange for a fee. Option contracts provide us with an effective hedge against a negative movement in currency rates at a fixed cost. Range forward contracts consist of the simultaneous purchase and sale of options to create a range within which we canbenefit from changes in currency rates. We generally use forward contracts to offset the impact of changes in currency rates on various foreign currency-denominated assets and liabilities. In hedging various foreign currency forecasted revenues and intercompany transactions where we have functional currency exposure, we use acombination of forward, option and range forward contracts in a cost beneficial manner. We do not use derivative financial instruments for trading or speculative purposes, nor are we a party to leveraged derivatives.

We performed a sensitivity analysis as of June 30, 2005. Assuming a hypothetical 10% adverse change in currency rates relative to the U.S. dollar, we calculated a hypothetical after-tax loss of $13.8 million, as compared to a hypothetical after-tax loss of $22.2 million at June 30, 2004. Our analysis included the change in value of thederivative financial instruments, along with the impact of translation on foreign currency-denominated assets and liabilities. Our analysis excluded the impact of translation of foreign currency-denominated forecasted revenues and intercompany transactions. If currency rates actually change in a manner similar to the assumed change inthe foregoing calculation, the hypothetical loss calculated would be more than offset by the recognition of higher U.S. dollar equivalent foreign revenues. Actual gains and losses in the future could, however, differ materially from this analysis, based on changes in the timing and amount of currency rate movements and actual exposuresand hedges.

In connection with the Axys acquisition in fiscal 2002, we assumed $26.0 million of 8% senior secured convertible notes, of which $10.0 million was repurchased in January 2002. During fiscal 2004, we repurchased an additional $10.0 million in principal amount of the outstanding notes. The remaining notes were repaid on theirmaturity date in fiscal 2005.

We do not hedge our equity positions in other companies or our short-term investments. Our exposure on these instruments is limited to changes in quoted market prices. The fair value of our minority equity positions in other companies was approximately $11 million at June 30, 2005, as compared to $16 million at June 30, 2004.
**Impact of Inflation and Changing Prices**
Inflation and changing prices are continually monitored. We attempt to minimize the impact of inflation by improving productivity and efficiency through continual review of both manufacturing capacity and operating expense levels. When operating costs and manufacturing costs increase, we attempt to recover such costs by increasing,over time, the selling price of our products and services. We believe the effects of inflation have been appropriately managed and therefore have not had a material impact on our historic consolidated operations and resulting financial position.
**Recently Issued Accounting Standards**
See Note 1 to our consolidated financial statements for a description of the effect of recently issued accounting pronouncements.
**Outlook** *Applied Biosystems Group*
The Applied Biosystems group believes that its fiscal 2006 outlook and financial performance will be affected by, among other things: the introduction and adoption of new products; the level of commercial investments in life science R&D; the level of government funding for life science research; the outcome of pending litigationmatters; competitive product introductions and pricing; purchase patterns from large genome centers for DNA sequencing instruments and consumables; and the success of the Applied Biosystems group’s expanded licensing program for PCR technology.

Subject to the inherent uncertainty associated with these factors, the Applied Biosystems group has the following expectations regarding its financial performance for fiscal 2006:
 •Annual revenue growth for fiscal 2006 is anticipated to be in the low single digits. This outlook includes the impact of currency, which at current exchange rates is expected to reduce reported revenue growth by approximately 1%. Revenues are expected to increase for both instruments and consumables. The Applied Biosystemsgroup anticipates revenue growth in the Real-Time PCR/Applied Genomics and Mass Spectrometry product categories and revenue declines in the DNA Sequencing and Core PCR & DNA Synthesis categories. Revenues in the Other Product Lines category are 
Back to Contents
Management’s    Discussion and Analysis — (Continued) Applera        Corporation     expected to approximately equal those in fiscal 2005. Quarterly year-over-year revenue changes may be different from our annual expectations due to a variety of factors, including the timing of customer orders anddisbursements of government funding.     •The Applied Biosystems group anticipates fiscal 2006 gross margin to equal, or slightly exceed, the fiscal 2005 gross margin of 53.2%. Consistent with the decision taken during the fourth quarter of fiscal 2005 to rebalance resources, total operating expenses are expected to be slightly higher in fiscal 2006 compared to the prioryear, as higher SG&A expense as a percent of total revenues is expected to be approximately offset by lower R&D expense as a percent of total revenues. The Applied Biosystems group expects operating margin to increase modestly from the fiscal 2005 level, excluding events impacting comparability in both fiscal years.    •The Applied Biosystems group expects the effective tax rate for fiscal 2006 to be approximately 30%, compared to 28% in fiscal 2005. Factors contributing to the anticipated increase in the effective tax rate include the phase out of export tax benefits and a change in the mix of U.S. versus foreign income. We continue to analyzecertain product manufacturing alternatives that could impact the tax rate. Independent of the expected effective tax rate, we anticipate that several outstanding tax matters in multiple taxing jurisdictions may be resolved in our favor during fiscal 2006.     •Excluding the fiscal 2005 events impacting comparability previously mentioned, the Applied Biosystems group expects earnings per share for fiscal 2006 to increase at or slightly above the annual revenue growth rate. In addition, the Applied Biosystems group believes that earnings per share would increase at a low double digitrate over the fiscal 2005 level, excluding the anticipated effects of currency, the expensing of stock options now required under SFAS No. 123, “Share-Based Payment (revised 2004),” and the increase in the effective tax rate.    •Capital spending for fiscal 2006 is expected to be in the range of $50-60 million.
The Applied Biosystems group continues to develop a plan to repatriate cash balances held outside the U.S. during fiscal 2006 consistent with the repatriation provision of the Jobs Act.

The Applied Biosystems group derives some rights to PCR technology under a series of agreements with Roche, which own some of the patents covering the PCR process. The Applied Biosystems group receives royalties from third-party sales of products incorporating this technology through a series of licensing programs that it hasestablished for industry access to some of its intellectual property. The first of these patents expired in March 2005 in the U.S., and will expire in March 2006 in Europe and some other jurisdictions. As further discussed in the following paragraph, the Applied Biosystems group believes that reduced PCR royalties resulting from theexpiration of these patents should be offset to a substantial degree by income from real-time PCR and other PCR-related technologies that it owns or licenses.

The agreements with Roche, and    the Applied Biosystems group’s and Roche’s rights to and commercialization    of PCR technology, were previously the subject of litigation and arbitration    proceedings. In May 2005, the Applied Biosystems group reached definitive    agreement with Roche to settle all of these outstanding legal proceedings,as described under Item 3. “Legal Proceedings” in Part I of our Form10-K Annual Report for fiscal 2005. The parties subsequently sought and receiveddismissal of the litigation and arbitration proceedings. In connection with thesettlement, the parties amended some licenses granted by each party to the otherin the research, applied,  and diagnostic fields, worldwide. In addition, Applerahas become the exclusive licensor of some Roche patents covering reagents, kits,and methods for practicing PCR and real-time PCR in the research and appliedfields. This will allow the Applied Biosystems group to expand the existing PCRlicensing program to include PCR and real-time PCR patents not previously partof its licensing program. The Applied Biosystems group believes that, if successful,the expanded licensing program should generate significant income that shouldsubstantially offset income lost from the patent expirations. The settlementalso releases the Applied Biosystems group, beginning in May2007, from its obligations to purchase some enzymes and other PCR-related reagentproducts from Roche under pre-existing supply agreements.

Other risks and uncertainties that may affect the Applied Biosystems group’s financial performance are detailed in Item 5. “Forward-Looking Statements and Risk Factors” in Part II of our Form 10-K Annual Report for fiscal 2005.
*Celera Genomics Group*
The Celera Genomics group believes that its fiscal 2006 financial performance will be influenced by, among other things, the success of its internal and external R&D programs, and the financial performance of Celera Diagnostics. Additionally, the Celera Genomics group anticipates continuing to advance its small molecule pipeline and isseeking partners to maximize the value of this asset in the most cost effective manner. The Celera Genomics group also expects to continue its proteomics program and seek additional partners to maximize the therapeutic and pharmacogenomic value associated with these programs. Subject to the inherent uncertainty associated withthese factors, the Celera Genomics group has the following expectations regarding its financial performance for fiscal 2006:
 •Excluding the potential effects of the Celera Genomics group’s partnering initiatives in fiscal 2006, the proceeds from the sale of the Rockville facility, and the Axys notes repayment in fiscal 2005, net cash use for fiscal 2006 is expected to be approximately the same as fiscal 2005. This includes an anticipated $10 to $15 million infiscal 2006 for the Celera Genomics group’s portion of the funding for the Celera Diagnostics joint venture. Revenues are expected to be in the range of $5 to $10 million, which reflects the discontinuation of the Online/Information Business.     •Excluding the potential effects of the Celera Genomics group’s partnering initiatives in fiscal 2006, the Celera Genomics group anticipates R&D expenses to be in the 45
Back to Contents
46Management’s    Discussion and Analysis — (Continued) Applera        Corporation     range of $95 to $105 million, and SG&A expenses to be in the range of $25 to $30 million. Pre-tax losses related to the Celera Diagnostics joint venture are expected to be in the range of $19 to $23 million.    •Capital spending in fiscal 2006 is anticipated to be in the range of $4 to $8 million. 
Other risks and uncertainties that may affect the Celera Genomics group’s financial performance are detailed in Item 5. “Forward-Looking Statements and Risk Factors” in Part II of our Form 10-K Annual Report for fiscal 2005.
*Celera Diagnostics*
Celera Diagnostics anticipates that its fiscal 2006 financial performance will be affected by, among other things: continued growth in demand for current products, such as ASRs for cystic fibrosis and HCV; sales of new products for infectious disease testing on the Abbott m2000TM system sold through the alliance with Abbott andothers in development at Celera Diagnostics; and new alliance product sales for ASRs for Fragile X and other genetic diseases. Celera Diagnostics intends to continue advancing its genomic research and its medical utility studies to create value from diagnostic testing and, together with the Celera Genomics group, to seek partnerships toleverage proteomic capabilities to identify novel targets, pharmacogenomic markers and biomarkers. Subject to the inherent uncertainty associated with these factors, Celera Diagnostics has the following expectations regarding its financial performance for fiscal 2006:

For fiscal 2006, Celera Diagnostics anticipates pre-tax losses to be in the range of $19 to $23 million, and fiscal 2006 net cash use to be in the range of $25 to $30 million, including capital spending of approximately $3 to $5 million. Total end user sales for the alliance between Celera Diagnostics and Abbott are anticipated to be inthe range of $80 to $90 million.

Other risks and uncertainties that may affect Celera Diagnostics’ financial performance are detailed in Item 5. “Forward-Looking Statements and Risk Factors” in Part II of our Form 10-K Annual Report for fiscal 2005.
**Forward-Looking Statements**
Some statements contained in this report, including the Outlooksection, are forward-looking and are subject to a 

variety of risks and uncertainties.    Similarly, the press releases we issue and other public statements we make    from time to time may contain language that is forward-looking. These forward-looking    statements may be identified by the use of forward-looking words or phrases    such as “forecast,” “believe,” “expect,” “intend,” “anticipate,” “should,” “plan,” “estimate,” and “potential,” among others. The forward-looking statements contained in this report are based on our current expectations and those made at other times will be based on our  expectations when the statements are made. We cannot guarantee that any forward-looking statements will be realized.

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. In order to comply with the terms of the safe harbor, we note that a variety of factors could cause actual results and experience to differ materially from anticipated results or other expectations expressed in forward-lookingstatements. We also note that achievement of anticipated results or expectations in forward-looking statements is subject to the possibility that assumptions underlying forward-looking statements will prove to be inaccurate. Investors should bear this in mind as they consider forward-looking statements. The risks and uncertainties thatmay affect the operations, performance, development, and results of our business include, but are not limited to, those described under the headings “Factors Relating to Applied Biosystems,” “Factors Relating to Celera Genomics,” and “Factors Relating to Celera Diagnostics, a 50/50 Joint Venture between Applied Biosystems and CeleraGenomics” contained in our Form 10-K Annual Report for fiscal 2005.

Also, we note that owners of    Applera-Applied Biosystems stock and Applera-Celera Genomics stock are subject    to risks arising from their ownership of common stock of a corporation with    two separate classes of common stock. The risks and uncertainties that arise    from our capital structure, particularly our two separate classes of common    stock, include, but are not limited to, those described under the heading “Risks Relating to a Capital Structure with Two Separate Classes of Common Stock” contained in our Form 10-K Annual Report for fiscal 2005.

 

Back to Contents
Consolidated    Statements of Operations Applera        Corporation   (Dollar amounts in thousands except per share amounts)For the years ended June 30, 2003 2004 **2005**  Products $1,405,063 $1,455,959 **$****1,490,361** Services  166,646  182,440  **205,514** Other  205,523  186,794  **149,265**  **Total Net Revenues**  1,777,232  1,825,193  **1,845,140**  Products  720,388  727,635  **735,127** Services  93,542  91,916  **95,911** Other  35,726  32,365  **18,747**  **Total Cost of Sales**  849,656  851,916  **849,785**  **Gross Margin**  927,576  973,277  **995,355**  Selling, general and administrative  455,232  512,375  **525,457** Research, development and engineering  381,325  354,165  **330,734** Amortization of intangible assets  5,873  2,900  **2,900** Employee-related charges, asset impairments and other  20,041  41,824  **34,376** Asset dispositions and litigation settlements  (25,776) (6,660) **(38,172****)** **Operating Income**  90,881  68,673  **140,060** Gain (loss) on investments, net  (2,615) 35,529  **(50****)**Interest expense  (1,048) (300) **(280****)**Interest income  30,665  23,137  **29,140** Other income (expense), net  (12,306) 2,448  **4,473**  **Income before Income Taxes**  105,577  129,487  **173,343** Provision (benefit) for income taxes  (12,903) 14,534  **13,548**  **Income from Continuing Operations**  118,480  114,953  **159,795** Income (loss) from discontinued operations, net of income taxes  (16,400) 10,628     **Net Income** $102,080 $125,581 **$****159,795**  **Applied Biosystems Group (see Note** **1)**          **Income from Continuing Operations per Share**          Basic $0.96 $0.84 **$****1.21** Diluted $0.95 $0.83 **$****1.19**            **Income (Loss) from Discontinued Operations per Share**          Basic and diluted $(0.08)$0.05 **$****—**            **Net Income per Share**          Basic $0.88 $0.89 **$****1.21** Diluted $0.87 $0.88 **$****1.19**  **Celera Genomics Group (see Note** **1)**          **Net Loss per Share**          Basic and diluted $(1.15)$(0.79)**$****(1.05****)** See accompanying notes to Applera Corporation’s consolidated financial statements.47
Back to Contents
48Consolidated Statements of Financial Position Applera      Corporation   (Dollar amounts in thousands except share data)At June 30, 2004 **2005**  **Assets**       Current assets       Cash and cash equivalents $507,870 **$****779,401** Short-term investments  742,871  **645,084** Accounts receivable (net of allowances for doubtful accounts of $8,948 and $7,025, respectively)  392,170  **383,938** Inventories, net  140,796  **126,541** Prepaid expenses and other current assets  139,701  **152,645**  Total current assets  1,923,408  **2,087,609** Property, plant and equipment, net  446,027  **438,398** Other long-term assets  603,416  **638,178**  **Total Assets** $2,972,851 **$****3,164,185**  **Liabilities and Stockholders’ Equity**       Current liabilities       Current portion of long-term debt $6,081 **$****—** Accounts payable  147,995  **174,022** Accrued salaries and wages  89,704  **91,188** Accrued taxes on income  80,599  **77,327** Other accrued expenses  272,389  **250,134**  Total current liabilities  596,768  **592,671** Other long-term liabilities  195,034  **227,431**  **Total Liabilities**  791,802  **820,102**  Commitments and contingencies (see Note 9)       **Stockholders’ Equity**       Capital stock       Preferred stock       Applera Corporation: $.01 par value; 10,000,000 shares authorized at June 30, 2004 and 2005; no shares issued and outstanding at June 30, 2004 and 2005       Common stock       Applera Corporation — Applied Biosystems stock: $.01 par value; 212,988,000 shares issued at June 30, 2004, and 213,008,000 shares issued at June 30, 2005  2,130  **2,130** Applera Corporation — Celera Genomics stock: $.01 par value; 73,086,000 shares issued at June 30, 2004, and 74,255,000 shares issued at June 30, 2005  731  **743** Capital in excess of par value  2,111,805  **2,132,364** Retained earnings  441,069  **558,065** Accumulated other comprehensive loss  (15,683) **(41,787****)**Treasury stock, at cost  (359,003) **(307,432****)** **Total Stockholders’ Equity**  2,181,049  **2,344,083**  **Total Liabilities and Stockholders’ Equity** $2,972,851 **$****3,164,185**  See accompanying notes to Applera Corporation’s consolidated financial statements.
 

Back to Contents
Consolidated Statements of Cash Flows Applera      Corporation   (Dollar amounts in thousands)For the years ended June 30, 2003 2004 **2005**  **Operating Activities of Continuing Operations**          Income from continuing operations $118,480 $114,953 **$****159,795** Adjustments to reconcile income from continuing operations          to net cash provided by operating activities:          Depreciation and amortization  146,655  125,267  **101,955** Asset impairments  9,991  37,288  **4,647** Provisions for excess lease space, office closures and severance costs  19,498  5,456  **25,682** Share-based compensation programs  5,114  3,309  **6,031** Deferred income taxes  (58,014) (49,236) **(34,871****)**(Gains) losses from investments and sales of assets  1,500  (35,463) **(29,646****)**Loss from equity method investees  18,894  488    Changes in operating assets and liabilities:          Accounts receivable  2,949  49,338  **9,471** Inventories  (6,847) 11,787  **13,912** Prepaid expenses and other assets  (22,881) (13,223) **(14,135****)**Accounts payable and other liabilities  (39,481) (55,529) **(26,418****)** **Net Cash Provided by Operating Activities****of Continuing Operations**  195,858  194,435  **216,423**  **Investing Activities of Continuing Operations**          Additions to property, plant and equipment  (144,395) (68,391) **(93,881****)**Proceeds from maturities of available-for-sale investments  3,891,204  2,230,846  **2,022,558** Proceeds from sales of available-for-sale investments  667,024  1,020,316  **670,062** Purchases of available-for-sale investments  (4,425,333) (3,196,559) **(2,595,919****)**Purchases of long-term investments  (16,834)      Other investments  (324) (288) **(371****)**Proceeds from the sale of assets, net  6,608  35,221  **49,751**  **Net Cash Provided (Used) by Investing Activities****of Continuing Operations**  (22,050) 21,145  **52,200**  **Net Cash Provided (Used) by Operating Activities****of Discontinued Operations**  (3,677) (17,738) **338**  **Financing Activities**          Net change in loans payable  (290)      Principal payments on debt     (10,000) **(6,000****)**Dividends  (35,567) (43,528) **(33,446****)**Purchases of common stock for treasury  (19,779) (324,999) **(6,100****)**Proceeds from stock issued for stock plans  33,047  28,801  **56,982**  **Net Cash Provided (Used) by Financing Activities**  (22,589) (349,726) **11,436**  **Effect of Exchange Rate Changes on Cash**  29,123  12,871  **(8,866****)** **Net Change in Cash and Cash Equivalents**  176,665  (139,013) **271,531** **Cash and Cash Equivalents Beginning of Year**  470,218  646,883  **507,870**  **Cash and Cash Equivalents End of Year** $646,883 $507,870 **$****779,401**  See accompanying notes to Applera Corporation’s consolidated financial statements.49
 

Back to Contents
50Consolidated Statements of Stockholders’ Equity  Applera      Corporation   (Dollar amounts in thousands) Applera–  Applied  Biosystems  Stock Applera–  Celera  Genomics  Stock Capital in  Excess of  Par Value Retained  Earnings Accumulated  Other  Comprehensive  Income (Loss) Applera–  Applied  Biosystems  Treasury  Stock Total          Stockholders’  Equity  **Balance at June** **30, 2002**  $2,128  $710 $2,086,929 $292,690  $(91,574)  $(65,940)  $2,224,943 Comprehensive income                      Net income           102,080        102,080 Other comprehensive income:                      Foreign currency translation adjustments              45,712       Unrealized gain on hedge contracts, net of reclassification adjustments              13,850       Minimum pension liability adjustment              (27,918)      Unrealized gain on investments, net ofreclassification adjustments              5,445                            Other comprehensive income              37,089     37,089                      Comprehensive income                    139,169                      Cash dividends declared on Applera-Applied Biosystems stock           (35,519)       (35,519)Purchase of shares for treasury stock                 (19,779) (19,779)Issuances under stock plans     13  9,510  (4,028)    19,304  24,799 Tax benefit related to employee stock options        1,558           1,558 Share-based compensation        4,939  29     146  5,114  **Balance at June** **30, 2003**  2,128  723  2,102,936  355,252  (54,485) (66,269) 2,340,285 Comprehensive income                      Net income           125,581        125,581 Other comprehensive income:                      Foreign currency translation adjustments              34,044       Unrealized gain on hedge contracts, net of reclassification adjustments              6,168       Minimum pension liability adjustment              8,780       Unrealized loss on investments, net ofreclassification adjustments              (10,190)                           Other comprehensive income              38,802     38,802                      Comprehensive income                    164,383                      Cash dividends declared on Applera-Applied Biosystems stock           (34,645)       (34,645)Purchase of shares for treasury stock                 (324,999) (324,999)Issuances under stock plans  2  8  2,348  (5,148)    32,135  29,345 Tax benefit related to employee stock options        3,372           3,372 Share-based compensation        3,149  29     130  3,308  **Balance at June** **30, 2004**  2,130  731  2,111,805  441,069  (15,683) (359,003) 2,181,049 Comprehensive income                      Net income           **159,795**        **159,795** Other comprehensive income:                      Foreign currency translation adjustments              **(8,598****)**      Unrealized gain on hedge contracts, net of reclassification adjustments              **10,975**       Minimum pension liability adjustment              **(24,610****)**      Unrealized loss on investments, net ofreclassification adjustments              **(3,871****)**                           Other comprehensive loss              **(26,104****)**    **(26,104****)**                     Comprehensive income                    **133,691**                      Cash dividends declared on Applera-Applied Biosystems stock           **(33,446****)**       **(33,446****)**Purchase of shares for treasury stock                 **(6,100****)** **(6,100****)**Issuances under stock plans     **12**  **9,283**  **(9,379****)**    **57,433**  **57,349** Tax benefit related to employee stock options        **5,509**           **5,509** Share-based compensation        **5,767**  **26**     **238**  **6,031**  **Balance at June** **30, 2005**  $**2,130**  $**743** **$****2,132,364** **$****558,065**  $**(41,787****)** $**(307,432****)** $**2,344,083**  See accompanying notes to Applera Corporation’s consolidated financial statements.
 

Back to Contents
Notes to Consolidated Financial Statements  Applera      Corporation   **Note** **1—Accounting Policies and Practices** **Organization**
Applera Corporation is a life sciences company with a mission to improve human health and society by understanding and applying the power of biology to develop breakthrough research technologies, diagnostic products, and drugs. When used in these notes, the terms “Applera,” “Company,” “we,” “us,” or “our” mean AppleraCorporation and its subsidiaries. We are comprised of three business segments: the Applied Biosystems group, the Celera Genomics group, and Celera Diagnostics. Please see Note 14 for more information on our segments.
**Principles of Consolidation**
We include the accounts of Applera and all of our majority-owned subsidiaries that we control in our consolidated financial statements. In addition, as required under Financial Accounting Standards Board (“FASB”) Interpretation No. (“FIN”) 46R, “Consolidation of Variable Interest Entities, an interpretation of ARB No. 51,” ourconsolidation policy requires the consolidation of variable interest entities, or VIEs, in which we are determined to be the primary beneficiary from the date the determination is made. We have eliminated all significant intracompany transactions and balances in consolidation.

We have reclassified certain prior year amounts in the consolidated financial statements and notes for comparative purposes.

During fiscal 2005, we reclassified $20.2 million relating to fiscal 2003 and $22.7 million relating to fiscal 2004 of costs supporting our patent related activities from R&D expenses to SG&A expenses. This reclassification had no impact on net income or earnings per share.

During fiscal 2005, we began classifying all of our investments in auction rate securities as short-term investments. Prior to 2005, some of these securities were included in cash and cash equivalents. Short-term investments included $54.1 million of auction rate securities at June 30, 2004. There were no investments in auction ratesecurities as of June 30, 2005. This reclassification had no impact on results of operations or previously reported cash flows from operations or financing activities.
**Use of Estimates**
We prepare our consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America, or GAAP. In preparing these statements, we are required to use estimates and assumptions. While we believe we have considered all available information, actual resultscould affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods.
**Capital Structure**
In fiscal 1999, as part of a recapitalization of our Company, we created two classes of common stock called Applera Corporation-Applied Biosystems Group Common Stock (“Applera-Applied Biosystems stock”) and Applera Corporation-Celera Genomics Group Common Stock (“Applera-Celera Genomics stock”). Applera-AppliedBiosystems stock is intended to reflect the relative performance of the Applied Biosystems group, and Applera-Celera Genomics stock is intended to reflect the relative performance of the Celera Genomics group.

Holders of Applera-Applied Biosystems stock and holders of Applera-Celera Genomics stock are stockholders of Applera. The Applied Biosystems group and the Celera Genomics group are not separate legal entities and holders of these stocks are stockholders of a single company, Applera. As a result, holders of these stocks are subjectto all of the risks associated with an investment in Applera and all of its businesses, assets, and liabilities.

Financial effects arising from one group that affect our consolidated results of operations or consolidated financial position could, if significant, affect the results of operations or financial position of the other group and the per share market price of the class of common stock relating to the other group. Any net losses of the AppliedBiosystems group or the Celera Genomics group and dividends or distributions on, or repurchases of, Applera-Applied Biosystems stock or Applera-Celera Genomics stock or repurchases of preferred stock of the Company will reduce the assets of Applera legally available for payment of dividends.
**Recently Issued Accounting Standards**
In December 2004, the FASB issued Statement of Financial Accounting Standards (“SFAS”) No. 123, “Share-Based Payment (revised 2004)”. Additional guidance to assist in the initial interpretation of this revised Statement was subsequently issued by the Securities Exchange Commission in Staff Accounting Bulletin (“SAB”) No. 107.SFAS No. 123R requires entities to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost will be recognized over the period during which an employee is required to provide service in exchange for the award (often the vesting period).The provisions of SFAS No. 123R were effective for us beginning July 1, 2005. We continued to apply the accounting provisions of Accounting Principles Board Opinion No. (“APB Opinion No.”) 25, “Accounting for Stock Issued to Employees,” in accounting for our share-based compensation plans through June 30, 2005.

We intend to adopt SFAS No. 123R using the modified prospective method of transition. This method will require us to apply the provisions of SFAS No. 123R to new awards and to any awards that are unvested on the effective date and will not require us to restate prior periods. Compensation cost for the unvested awards will berecognized over the remaining service period using the compensation cost calculated for our pro forma disclosures that had been required by SFAS No. 123,
51
 

Back to Contents
52Notes to Consolidated Financial Statements — (Continued)  Applera      Corporation   
Accounting for Stock-Based Compensation. Some of our share-based compensation plans have a retirement eligible provision, whereby awards granted to employees who have reached the age of 55 and who haveprovided five years of service, automatically vest when they retire from the Company. For these awards, we have previously followed the nominal vesting period (over a four-year service period) approach in our proforma disclosures. On adoption of SFAS No. 123R, new awards will be subject to the non-substantive vesting period approach. Under this approach, we will recognize the compensation costs for the awards when theemployee is no longer required to provide any additional service to retain the award. Additionally, SFAS No. 123R requires that estimated forfeitures be considered in determining compensation cost. As previouslypermitted, we recorded forfeitures when they occurred. Accordingly, we expect the adoption of SFAS No. 123R will result in us recognizing an immaterial cumulative benefit of a change in accounting principle, whichwill represent the difference between the pro forma expense we have disclosed to date and the compensation expense as calculated considering estimated forfeitures.

During fiscal 2005, our board of directors approved the accelerated vesting of substantially all unvested stock options. As a result, the pro forma impact to net income and earnings per share under SFAS No. 123’s fair value method of accounting as reflected in this Note is not indicative of future annual expense to be recognizedunder the SFAS No. 123R. To the extent the Company grants more share-based compensation awards, the adoption of SFAS No. 123R may have a material impact on our consolidated financial statements.

FASB Staff Position (“FSP”)    No. 109-2, “Accounting and Disclosure Guidance for the Foreign    Earnings Repatriation Provision within the American Jobs Creation Act of    2004,” provides guidance under SFAS No. 109, “Accounting for    Income Taxes,” with respect to recording the potential impact of the    repatriation provisions of theAmerican Jobs Creation Act of 2004 (the “Jobs Act”) on enterprises’ incometax expense and deferred tax liability. The Jobs Act was enacted on October 22,2004. FSP No. 109-2 states that an enterprise is allowed time beyond thefinancial reporting period of enactment to evaluate the effect of the Jobs Acton its plan for  reinvestment or repatriation of foreign earnings for purposesof applying SFAS No. 109. We have not yet completed evaluating the impactof the repatriation provisions. 

Accordingly, as provided for    in FSP No. 109-2,  we have not adjusted our tax expense or deferred tax liability to reflect the  repatriation provisions of the Jobs Act.

The Jobs Act provides for a one-time 85% dividends received deduction on certain foreign earnings repatriated during a one-year period. The maximum amount of our foreign earnings that qualify for this one-time deduction is $500 million. The deduction would result in an approximate 5.25% federal tax rate on the repatriatedearnings. The tax on repatriated earnings will be impacted by foreign tax credits on the taxable portion of the repatriation and additional tax expense resulting from the required base period dividend needed before receiving the 85% deduction on the incremental $500 million repatriation. To qualify for the deduction, the earnings mustbe reinvested in the U.S. pursuant to a domestic reinvestment plan established by a company’s chief executive officer and approved by its board of directors. Certain other criteria in the Jobs Act must be satisfied as well. For us, the period during which the qualifying distributions can be made is all of fiscal 2006.
**Earnings (Loss) per Share**
We compute basic earnings (loss) per share for each class of common stock using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared and participation rights in undistributed earnings. To calculate basic earnings(loss) per share for each class of common stock, we divide the earnings (losses) allocated to each class of common stock by the weighted average number of outstanding shares of that class of common stock. Diluted earnings (loss) per share is calculated using the weighted average number of outstanding shares of that class of commonstock adjusted to include the dilutive effect of common stock equivalents. Dilutive common stock equivalents primarily consist of employee stock options.

Our board of directors approves the method of allocating earnings to each class of common stock for purposes of calculating earnings (loss) per share. This determination is generally based on the net income or loss amounts of the corresponding group calculated in accordance with GAAP, consistently applied. We believe this method ofallocation is systematic and reasonable. Our board of directors can, in its discretion, change the method of allocating earnings (losses) to each class of common stock at any time.

 

Back to Contents
Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   
The following table presents a reconciliation of basic and diluted earnings (loss) per share for the fiscal years ended June 30:
  Applied Biosystems Group Celera Genomics Group (Amounts in millions except per share amounts) 2003 2004 **2005** 2003 2004 **2005**  Income (loss) from continuing operations $199.6 $172.3 **$****236.9** $(81.9)$(57.5)**$****(77.1****)**Less dividends declared on common stock  35.5  34.6  **33.4**           Undistributed earnings (loss) $164.1 $137.7 **$****203.5** $(81.9)$(57.5)**$****(77.1****)** Allocation of basic earnings (loss) per share                   Basic distributed earnings per share* $0.17 $0.17 **$****0.17** $— $— **$****—** Basic undistributed earnings (loss) per share  0.79  0.67  **1.04**  (1.15) (0.79) **(1.05****)** Total basic earnings (loss) per share from continuing operations $0.96 $0.84 **$****1.21** $(1.15)$(0.79)**$****(1.05****)** Allocation of diluted earnings (loss) per share                   Diluted distributed earnings per share* $0.17 $0.17 **$****0.17** $— $— **$****—** Diluted undistributed earnings (loss) per share  0.78  0.66  **1.02**  (1.15) (0.79) **(1.05****)** Total diluted earnings (loss) per share fromcontinuing operations $0.95 $0.83 **$****1.19** $(1.15)$(0.79)**$****(1.05****)** Weighted average number of common shares                   Basic  209.0  204.6  **196.4**  71.5  72.5  **73.4** Common stock equivalents  1.4  3.7  **2.6**           Diluted  210.4  208.3  **199.0**  71.5  72.5  **73.4**  * Amounts represent actual dividends per share distributed.
Options to purchase stock at exercise prices greater than the average market prices of our common stocks were excluded from the computation of diluted earnings per share because the effect would have been antidilutive. Additionally, options and warrants to purchase shares of Applera-Celera Genomics stock were excluded from thecomputation of diluted loss per share because the effect was antidilutive. The following table presents the number of shares excluded from the diluted earnings and loss per share computations at June 30:
(Shares in millions) 2003 2004 **2005**  Applera-Applied Biosystems stock  25.7  27.2  **16.5** Applera-Celera Genomics stock  12.3  12.8  **11.9**   **Share-Based Compensation**
We currently sponsor stock option    plans, employee stock purchase plans, and a restricted stock plan. See Note 6    for further information. We have applied the provisions of APB Opinion No. 25    and FIN 44, “Accounting for Certain Transactions Involving Stock Compensation–An    Interpretation of Accounting Principles Board OpinionNo. 25” in accounting for share-based compensation plans. In accordancewith APB Opinion No. 25, compensation cost for stock options was recognizedin income based on the excess, if any, of the quoted market price of the stockover the exercise price of the stock options at the grant date of the award.Generally, the exercise  price of stock options granted to employees equaledthe fair market value of our stock prices at the date of grant. Therefore, nocompensation expense was recorded. Effective July 1, 2005, we are requiredto adopt the provisions of SFAS No. 123R for all of our share-based compensationplans.

During fiscal 2005, our board of directors approved theaccelerated vesting of substantially all unvested stock options 

previously awarded to employees,    officers, directors, and consultants in light of the new accounting requirements    of SFAS No. 123R. In order to prevent unintended personal benefits to directors, officers, and other  senior management, the board imposed restrictions on any shares received through the exercise of accelerated options held by those individuals. These restrictions prevent the sale, or any other transfer, of any stock obtained through exercise of an accelerated option prior to the earlier of the original vesting date or the individual’s  termination of employment.

Our board of directors approved the accelerated vesting based on the belief that it was in the best interest of stockholders as it will reduce our reported compensation expense in future periods. As a result of the acceleration, during fiscal 2005, the Applied Biosystems group recorded a pre-tax charge of $1.6 million and the CeleraGenomics group recorded a pre-tax charge of $1.0 million of compensation cost that represents the intrinsic value measured at the relevant acceleration dates for the estimated number of awards that, absent the accelerated vesting would have expired unexercisable. Our pro forma tables below include the acceleration of theunamortized portion of unvested stock options, which resulted in an additional pre-tax amount of approximately $98 million for the Applied Biosystems group and approximately $19 million for the Celera Genomics group for fiscal 2005.
53
Back to Contents
54Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation
For purposes of pro forma disclosure, the estimated fair value of the options is amortized to expense over the options’ vesting period. The following tables illustrate the effect on reported income (loss) from continuing operations and earnings (loss) per share as if we had applied the fair value method of accounting for employee stockplans as required by SFAS No. 123 for the fiscal years ended June 30:
  Applera Corporation (Dollar amounts in millions) 2003 2004 **2005**  Income from continuing operations, as reported $118.5 $115.0 **$****159.8** Add:     Share-based employee compensation expense included in reported income from           continuing operations, net of tax  1.1  1.9  **4.3** Deduct: Share-based employee compensation expense determined under fair value based           method, net of tax  148.7  120.9  **170.5**  Pro forma loss from continuing operations $(29.1)$(4.0)**$****(6.4****)**         Applied Biosystems Group Celera Genomics Group (Dollar amounts in millions except per share amounts) 2003 2004 **2005** 2003 2004 **2005**  Income (loss) from continuing operations, as reported $199.6 $172.3 **$****236.9** $(81.9)$(57.5)**$****(77.1****)**Add:      Share-based employee compensation expense            included in reported income (loss) from            continuing operations, net of tax  0.7  1.2  **2.7**  0.4  0.7  **1.6** Deduct: Share-based          employee compensation expense           determined under fair value based method,           net of tax  118.8  97.6  **141.9**  29.9  23.3  **28.6**  Pro forma income (loss) from continuing operations $81.5 $75.9 **$****97.7** $(111.4)$(80.1)**$****(104.1****)** Earnings (loss) per share from continuing operations                   Basic — as reported $0.96 $0.84 **$****1.21** $(1.15)$(0.79)**$****(1.05****)**Basic — pro forma $0.39 $0.37 **$****0.50** $(1.56)$(1.10)**$****(1.42****)**Diluted — as reported $0.95 $0.83 **$****1.19** $(1.15)$(0.79)**$****(1.05****)**Diluted — pro forma $0.39 $0.36 **$****0.49** $(1.56)$(1.10)**$****(1.42****)**   
The weighted average fair value of our stock options granted for the fiscal years ended June 30 was:
  2003 2004 **2005**  Applera-Applied Biosystemsstock options $9.15 $12.32 **$****11.15** Applera-Celera Genomicsstock options  6.49  6.05  **3.90**  
We estimate the fair value of our options using the Black-Scholes option pricing model, which was developed for use in estimating the value of freely-traded options that have no vesting restrictions and are fully transferable. Similar to other option pricing models, this model requires the input of highly-subjective assumptions, includingthe stock price volatility. Our options have characteristics significantly different from traded options, and changes in the input assumptions can materially affect the fair value estimates. The fair value of the options was estimated at the grant date with the following weighted average assumptions for the fiscal years ended June 30:
  2003 2004 **2005**  **Applied Biosystems Group**          Dividend yield  1.1%  0.8%  **0.9%** Volatility  72%  71%  **62%** Risk-free interest rate  3.0%  3.8%  **3.6%** Expected option life in years  5  5  **5**  **Celera Genomics Group**          Volatility  97%  66%  **43%** Risk-free interest rate  3.0%  3.8%  **3.6%** Expected option life in years  4  4  **4**  
Upon adoption of the new accounting guidance under SFAS No. 123R, we will evaluate our option valuation methodologies. Prior to fiscal 2006, we determined expected volatility based on historical volatilities of our two classes of common stock. As required by SFAS No. 123R, we will review other factors in determining our expectedvolatility assumption. Such consideration will include using implied volatilities of current traded options or using a combination of historical and implied volatilities. The use of implied volatilities, either on a stand alone basis or as a combination with historical volatilities, will generally lead to lower expected volatility. As shown on the tableabove, our historical volatility has significantly decreased for both classes of common stock over the last several years.

Back to Contents
Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   **Foreign Currency**
We translate assets and liabilities of foreign operations, where the functional currency is the local currency, into U.S. dollars at the fiscal year-end currency rates. We record the related translation adjustments as a separate component of accumulated other comprehensive income (loss) in the Consolidated Statements of Financial Position.We translate foreign currency revenues and expenses using average currency rates prevailing during the fiscal year. Foreign currency transaction gains and losses are included in net income. Transaction gains and losses occur from fluctuations in exchange rates when assets and liabilities are denominated in currencies other than thefunctional currency of an entity. Net transaction gains were $3.0 million for fiscal 2003, net transaction losses were $0.6 million for fiscal 2004, and net transaction gains were $3.4 million for fiscal 2005. Net transaction gains and losses include the gains and losses on the revaluation of non-functional currency-denominated netassets offset by the losses and gains, respectively, on non-qualified hedges on these positions. See Note 10 for further information on our hedging program.
**Derivative Financial Instruments**
We use derivative financial instruments to minimize exposure to market risks arising from changes in currency rates. We used forward, option, and range forward contracts as our derivative financial instruments during fiscal 2004 and 2005 (see Note 10).
**Cash and Cash Equivalents and Short-Term Investments**
Our cash equivalents consist of highly liquid debt instruments, time deposits, and certificates of deposit with original maturities of three months or less at the date of purchase. These instruments are readily convertible into cash.

All short-term investments are classified as available-for-sale and are carried at fair value with unrealized gains and losses included as a separate component of stockholders’ equity, net of any related tax effect. Investments with maturities beyond one year may be classified as short-term based on their highly liquid nature and becausesuch marketable securities represent the investment of cash that is readily available for current operations should it be needed. We use the specific identification method to determine the cost of securities disposed of, with realized gains and losses recorded in other income (expense), net in the Consolidated Statements of Operations.

The fair value of short-term investments and unrealized gains (losses) at June 30, 2004 and 2005, was as follows:
(Dollar amounts in millions) 2004 **2005**  Certificates of deposit and time deposits $13.0 **$****18.8** Commercial paper  69.5  **54.8** U.S. government and agency obligations  367.6  **326.1** Corporate bonds  188.9  **180.4** Asset backed securities  49.8  **65.0** Auction rate securities  54.1     Total short-term investments $742.9 **$****645.1**  Unrealized gains on investments $0.2 **$****0.1** Unrealized losses on investments  (1.5) **(2.5****)** 
The realized gains and losses associated with our short-term investments for the fiscal years ended June 30 were as follows:
(Dollar amounts in millions) 2003 2004 **2005**  Realized gains on investments $0.5 $    0.3 **$**    **0.1** Realized losses on investments  (0.2) (0.3) **(0.2****)** 
The following table summarizes the contractual maturities of available-for-sale securities at June 30:
(Dollar amounts in millions) **2005**  Less than one year **$****378.7** Due in one to two years  **176.5** Due in two to five years  **88.9** Over five years  **1.0**  Total **$****645.1**  
We also held securities that are classified as trading at June 30, 2004 and 2005, which were recorded at fair value with realized and unrealized gains and losses included in income. These securities are recorded in other current assets. Included in income were unrealized net gains of $2.2 million during fiscal 2004 and unrealized lossesof $1.9 million during fiscal 2005.
**Investments**
We account for investments in business entities in which we have the ability to exercise significant influence over operating and financial policies (generally 20% to 50% ownership) using the equity method of accounting. Under the equity method of accounting, we record investments at cost and we adjust for dividends andundistributed earnings and losses. As of June 30, 2004 and 2005, we did not have any investments in VIEs.

We classify investments for which we do not have the ability to exercise significant influence as minority equity investments. We account for non-marketable minority equity investments using the cost method of accounting. We generally classify minority equity investments in public companies as available-for-sale and carry them atmarket value in accordance with SFAS No. 115, “Accounting for Certain Investments in Debt and Equity Securities.” We use the specific identification method to determine the cost of securities disposed of. Under the cost method of accounting, we carry investments in equity securities at cost and adjust only for other-than-temporary
55
Back to Contents
56Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   
declines in fair value, distributions of earnings and additional investments.

In connection with the acquisition of Axys Pharmaceuticals, Inc. in fiscal 2002, we received an approximate 30% ownership interest in Discovery Partners International, Inc. (“DPI”). The investment was accounted for under the equity method of accounting. During fiscal 2004, we sold our ownership interest in DPI common stock for apre-tax gain of $24.8 million.

The following table provides unaudited summarized financial information on a 100% basis for DPI. Prior to the disposition of our investment in DPI, we reported the impact of DPI’s financial results in our financial statements on a three-month delay. As a result, the unaudited summarized statement of operations information of DPIpresented below reflects balances for the year ended March 31:
(Dollar amounts in millions) 2003  Net revenue $44.0 Gross profit  5.3 Net loss  (61.0) 
We recorded a $17.7 million loss for our share of DPI’s losses in fiscal 2003 in other income (expense), net. Based on the decline in its market capitalization, DPI re-assessed the value of its goodwill and other long-lived assets and recorded an impairment charge as a result of this re-assessment. Included in the $17.7 million loss was anon-cash charge of $15.1 million, which represented our share of the impairment charge.
**Inventories**
Inventories are stated at the lower of cost (on a first-in, first-out basis) or market. Cost is determined principally on the standard cost method for manufactured goods which approximates cost on the first-in, first-out method. Reserves for obsolescence and excess inventory are provided based on historical experience and estimates offuture product demand. Inventories at June 30, 2004 and 2005, included the following components:
(Dollar amounts in millions) 2004 **2005**  Raw materials and supplies $52.6 **$****45.9** Work-in-process  7.4  **5.3** Finished products  80.8  **75.3**  Total inventories, net $140.8 **$****126.5**   **Property, Plant and Equipment, and Depreciation**
Property, plant and equipment are recorded at cost and consisted of the following at June 30, 2004 and 2005:
(Dollar amounts in millions) 2004 **2005**  Land and improvements $101.3 **$****117.6** Buildings and leasehold improvements  284.1  **288.4** Machinery and equipment  350.3  **306.5** Computer software and licenses  133.6  **133.9**  Property, plant and equipment, at cost  869.3  **846.4** Accumulated depreciation and amortization  423.3  **408.0**  Property, plant and equipment, net $446.0 **$****438.4**  
We capitalize major renewals and improvements that significantly add to productive capacity or extend the life of an asset. We expense repairs, maintenance, and minor renewals and improvements as incurred. We remove the cost of assets and related depreciation from the related accounts on the balance sheet when such assets aredisposed of, and any related gains or losses are reflected in current earnings.

We compute depreciation expense    of owned property, plant and equipment based on the expected useful lives    of the assets primarily using the straight-line method. We amortize leasehold    improvements over their estimated useful lives or the term of the applicable    lease, whichever is less. Useful lives are generally five to ten years for     land improvements, 30 to 40 years for buildings, and three to seven years    for machinery and equipment. We amortize capitalized internal-use software    costs primarily over the expected useful lives, not to exceed seven years.    Depreciation expense for property, plant and equipment was $112.6 million    for fiscal 2003, $94.9 million forfiscal 2004, and $82.5 million for fiscal 2005. In addition, the CeleraGenomics group recorded a pre-tax impairment charge of $18.1 million infiscal 2004 related to the anticipated sale of its Rockville, Maryland facility.Upon completion of the sale in fiscal 2005, the Celera Genomics group recordeda $3.6 million pre-tax favorableadjustment to the charge previously recorded in fiscal 2004. During fiscal 2005,the Applied Biosystems group recorded $2.6 million of impairment chargesrelated to its San Jose, California, and Houston, Texas facilities. Includedin this charge was $1.9 million of property, plant and equipment. These chargesare included in employee-related charges, asset impairments and other in theConsolidated Statements of Operations. See Note 2 for more information.
**Capitalized Software**
We capitalize and include in other long-term assets software development costs for software used in our products which are incurred from the time technological feasibility of the software is established until the software is ready for its intended use. We amortize these costs using the straight-line method over a maximum of three yearsor the expected life of the product, whichever is less. Capitalized software costs, net of accumulated amortization, were $8.2 million at June 30, 2004, and $2.8 million at June 30, 2005. Amortization expense was $15.1 million in fiscal 2003, $13.6 million in fiscal 2004, and $6.9 million in fiscal 2005. We expense R&D costs andother computer software maintenance costs related to software development as incurred.

 

Back to Contents
Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   **Intangible Assets**
We amortize intangible assets using the straight-line method over their expected useful lives. Intangible assets at June 30, 2004 and 2005, included the following:
     2004 **2005** (Dollar amounts in millions)  WeightedAverage Life  GrossCarryingAmount  AccumulatedAmortization  GrossCarryingAmount  AccumulatedAmortization  Patents  **8**  $25.5  $18.8  **$25.5**  **$20.7** Acquired technology  **6**  60.1  35.5  **60.5**  **42.7** Favorable operating leases  **4**  11.6  7.6  **11.6**  **10.5**  Total     $97.2  $61.9  **$97.6**  **$73.9**    
In fiscal 2004, the Applied Biosystems group recorded $14.9 million for the impairment of patents and acquired technology related to Boston Probes, Inc., a business we acquired in fiscal 2002. This charge is included in employee-related charges, asset impairments and other in the Consolidated Statements of Operations (see Note 2).

Aggregate amortization expense for the fiscal years ended June 30, 2004 and 2005, was as follows:
(Dollar amounts in millions) 2004 **2005**  Applied Biosystems group $10.1 **$****7.0** Celera Genomics group  2.9  **2.9** Celera Diagnostics  2.1  **2.1**  Consolidated $15.1 **$****12.0**  
With the exception of the charge discussed above, the Applied Biosystems group records a substantial portion of amortization expense in cost of sales. The Celera Genomics group records amortization expense in amortization of intangible assets and Celera Diagnostics records amortization expense in cost of sales. At June 30, 2005, weestimated annual amortization expense of our intangible assets for each of the next five fiscal years to be as shown in the following table. Future acquisitions or impairment events could cause these amounts to change.
(Dollar amounts in millions) Applied  Biosystems  Group Celera  Genomics  Group Celera  Diagnostics Consolidated  2006        **$6.8**        **$1.1**        **$2.2**        **$10.1** 2007  **5.3**     **2.0**  **7.3** 2008  **2.6**     **0.4**  **3.0** 2009  **1.6**        **1.6** 2010  **1.2**        **1.2**   **Goodwill**
Goodwill represents the excess purchase price over the net asset value of companies acquired. We test goodwill for impairment using a fair value approach at the reporting unit level annually, or earlier if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carryingamount. A reporting unit can be an operating segment or a business if discrete financial information is prepared and reviewed by management. Under the impairment test, if a reporting unit’s carrying amount exceeds its estimated fair value, goodwill impairment is

recognized to the extent that the reporting unit’s carrying amount of goodwill exceeds the implied fair value of the goodwill.

The carrying amount of goodwill at June 30, 2004 and 2005, was $39.4 million, of which $36.7 million was allocated to the Applied Biosystems group and $2.7 million was allocated to the Celera Genomics group.
**Impairment of Long-Lived Assets**
We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Events which could trigger an impairment review include, among others, a decrease in the market value of an asset, an asset’s inability to generate income from operations andpositive cash flow in future periods, a decision to change the manner in which an asset is used, a physical change to an asset or a change in business climate. We calculate estimated future undiscounted cash flows, before interest and taxes, resulting from the use of the asset and its estimated value at disposal and compare it to itscarrying value in determining whether impairment potentially exists. If a potential impairment exists, a calculation is performed to determine the fair value of the long-lived asset. This calculation is based on a valuation model and discount rate commensurate with the risks involved. Third party appraised values may also be used indetermining whether impairment potentially exists.
**Product Warranties**
We accrue warranty costs for product sales at the time of shipment based on historical experience as well as anticipated product performance. Our product warranties extend over a specified period of time ranging up to two years from the date of sale depending on the product subject to warranty. The warranties cover equipmentinstallation, customer training, and application support. We periodically review the adequacy of our warranty reserve, and adjust, if necessary, the warranty percentage and accrual based on actual experience and estimated costs to be incurred.
57
 

Back to Contents
58Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   
The following table provides the analysis of the warranty reserve for the fiscal years ended June 30, 2004 and 2005:
(Dollar amount in millions) 2004 **2005**  Beginning of year $15.1 **$****15.9** Accruals for warranties  30.4  **20.9** Usage of reserve  (29.6) **(22.8****)** End of year $15.9 **$****14.0**   **Revenues**
We record revenue upon entering into a final agreement with the customer that includes the specific nature and terms of the revenue-generating activity and for which collectibility is reasonably assured, which is generally at the time of shipment of products or performance of services. Concurrently, we record provisions for warranty,returns, and installation based on historical experience and anticipated product performance. Discounts are recorded as sales reductions concurrently with the applicable sale. Cash discounts are recorded as sales reductions upon our receipt of the sales proceeds. Deferred revenues consist of prepayments for service contracts andsubscription agreements. Revenue is not recognized at the time of shipment of products in situations where risks and rewards of ownership are transferred to the customer at a point other than shipment due to the shipping terms, the existence of an acceptance clause, the achievement of milestones, or some return or cancellationprivileges. Revenue is recognized once customer acceptance occurs or the acceptance provisions lapse. Service revenue is recognized over the period services are performed. Amounts billed to customers related to shipping and handling are included in net revenues, whereas shipping and handling costs are included in cost of sales.

In revenue arrangements with multiple deliverables, we record revenue as the separate elements are delivered to the customer if the delivered item is determined to represent a separate earnings process, there is objective and reliable evidence of the fair value of the undeliverable item, and delivery or performance of the undelivered itemis probable and substantially in our control. For certain instruments where installation is determined to be a separate earnings process, the portion of the sales price allocable to the fair value of the installation is deferred and recognized when installation is complete. We determine the fair value of the installation process based ontechnician labor billing rates, the expected number of hours to install the instrument based on historical experience, and amounts charged by third parties.

Under sales-type or direct financing lease agreements, revenue is recognized at the time of shipment, and the difference between the gross investment in the lease and the sales price of the property is deferred and amortized over the lease term using the interest method. These transactions represent an insignificant portion of ourconsolidated revenues.

We recognized revenue on subscription fees for access to our on-line information databases as part of the Celera Discovery SystemTM (“CDS”) ratably over the contracted period.

We recognize royalty revenues when earned over the term of the agreement in exchange for the grant of licenses to use our products or certain technologies for which we hold patents. We recognize revenue for estimates of royalties earned during the applicable period, based on historical activity, and make revisions for actual royaltiesreceived in the following quarter. For those arrangements where royalties cannot be reasonably estimated, we recognize revenue upon the receipt of cash or royalty statements from our licensees. In addition, we recognize up-front nonrefundable license fees when due under contractual agreement, unless we have specific continuingperformance obligations requiring deferral of all or a portion of such fees.

A significant portion of Celera Diagnostics’ reported net revenues consists of equalization payments from Abbott Laboratories resulting from a profit and loss sharing arrangement between Abbott and Celera Diagnostics. All revenues, costs and expenses of the alliance are shared equally by both parties through a quarterly equalizationpayment. The timing and nature of equalization payments can lead to fluctuations in both reported revenues and gross margins from period to period due to changes in end-user sales of alliance products and differences in relative operating expenses between the alliance partners.
**Research, Development and Engineering**
We expense research, development and engineering costs as incurred. Research, development and engineering expenses include salaries and benefits, supplies and materials, facilities costs, equipment depreciation, contract services, allocations of various corporate costs and other outside costs.
**Supplemental Cash Flow Information**
Cash paid for interest and income taxes and significant non-cash investing and financing activities for the following fiscal years ended June 30 were as follows:
(Dollar amounts in millions) 2003 2004 **2005**  Interest $1.5 $1.3 **$****0.2** Income taxes  66.6  52.8  **58.0** Significant non-cash investing and financing activities:          Tax benefit related to employee stock options  1.6  3.4  **5.5** Dividends declared not paid  8.9       Issuances of restricted stock  0.2  6.6  **0.8** Stock issued for which proceeds were in-transit     0.5  **0.9**  
Back to Contents
Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   **Note** **2—Events Impacting Comparability**
The following table summarizes significant charges and income for the fiscal years ended June 30:
(Dollar amounts in millions) 2003 2004 **2005**  Severance and benefit costs $(22.9)$(6.3)**$****(24.7****)**Excess lease space        **(10.0****)**Asset impairments     (36.1) **(0.8****)**Office closures  (1.4)      Reduction of expected costs  4.3  0.6  **1.1**  Total employee-related charges, asset impairments, and other $(20.0)$(41.8)**$****(34.4****)** Other events impacting comparability:          Impairment of inventory recorded in costs of sales $(9.5)$(1.2)**$****(1.7****)**Asset dispositions and litigation settlements  25.8  6.7  **38.2** Investment gains     36.0    Tax items  27.8     **25.7**   **Employee-Related Charges, Asset Impairments, and Other**
The following charges have been recorded in the Consolidated Statements of Operations in employee-related charges, asset impairments and other, except as noted.
*Fiscal 2003*
During fiscal 2003, the Applied Biosystems group recorded pre-tax charges totaling $33.8 million for organization-wide cost reductions in response to uncertain economic conditions as well as its overall strategy to return research and development investment to more traditional levels. The $33.8 million charge consisted of$24.3 million in employee-related charges, asset impairments and other, of which $22.9 million was for severance and benefits costs and $1.4 million was for office closures. The Applied Biosystems group also recorded $9.5 million for the impairment of assets in cost of sales. As the actions for this program were implemented, weincurred lower than anticipated employee-related costs. Accordingly, the Applied Biosystems group recorded pre-tax benefits of $4.3 million in the fourth quarter of fiscal 2003, $0.6 million in the second quarter of fiscal 2004, and $0.1 million in the third quarter of fiscal 2005 for reductions in expected employee-related costs.

The severance and benefits charge    related to the termination of approximately 400 employees worldwide. Positions    impacted, mainly in the U.S. and Europe, were primarily within the areas    of research, manufacturing, sales, marketing, and administration. The workforce    reduction commenced in January 2003 and substantially all of the  affected    employees were terminated by the end of fiscal 2004. The asset impairment    charges resulted primarily from uncertainties surrounding the commercial    introduction of products based on a collaboration with Illumina, Inc. and    from a revised focus on products designed to offer the most efficient and    newest technology with long-term earnings growth potential. The charge for    office closures was primarily for one-time payments to terminate the leases    of excess facilities and to write-off the 

fixed assets and leasehold improvements    related to these facilities.

The following table details the major components of the fiscal 2003 charges:
(Dollar amounts in millions) Employee-  Related Charges Asset  Impairments Office  Closures Total  Total charges  $22.9  $9.5  $1.4 $33.8 Cash payments  14.2     0.2  14.4 Non-cash charges     9.5  0.5  10.0 Reduction of expected costs  4.3        4.3  Balance at June 30, 2003  4.4  —  0.7  5.1  Cash payments  3.0     0.5  3.5 Reduction of expected costs  0.6        0.6  Balance at June 30, 2004  0.8     0.2  1.0  Cash payments  **0.2**     **0.2**  **0.4** Reduction of expected costs  **0.1**        **0.1**  Balance at June 30, 2005  **$**** 0.5**  **$**** —**  **$** **—** **$****0.5**  
Substantially all cash payments were made by June 30, 2004. These payments were funded primarily from cash provided by operating activities. The majority of the remaining cash payments are expected to be disbursed by fiscal 2007.
*Fiscal 2004*
During fiscal 2004, the Applied Biosystems group recorded pre-tax charges of $6.3 million for employee terminations. All cash payments were made by March 31, 2005. The cash payments were funded primarily from cash provided by operating activities.

In the fourth quarter of fiscal 2004, the Applied Biosystems group recorded pre-tax charges of $14.9 million for the impairment of patents and acquired technology related to Boston Probes, Inc., a business we acquired in fiscal 2002. As a result of a strategic and operational review, we determined, during the fourth quarter of fiscal2004, that the intellectual property was not expected to lead to feasible commercialization of the products that we had originally envisioned when we purchased Boston Probes. In accordance with SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” the impairment charge represented the amount by whichthe carrying amount of the assets exceeded their fair value. The fair value was based on estimated undiscounted future cash flows relating to the existing service potential of those assets.

Additionally in the fourth quarter of fiscal 2004, the Applied Biosystems group recorded pre-tax charges of $4.4 million for asset write-downs and other expenses related to the decision to transfer the 8500 Affinity Chip Analyzer product line to HTS Biosystems, Inc., its development partner for this product line. The $4.4 million chargeconsisted of $3.2 million for write-downs of fixed assets and other charges and $1.2 million for the impairment of inventory recorded in cost of sales. The Applied Biosystems group had entered into a collaboration and commercialization agreement for this product line with HTS Biosystems in fiscal 2002. As a result of a change instrategic direction and focus at the Applied Biosystems group, as determined during the previously mentioned review, we
59
 

Back to Contents
60Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   
determined that the inventory and fixed assets related to this product line had no net realizable value. Additionally, we wrote off a loan and accrued the final payments based on our decision to terminate theagreement with HTS Biosystems. In fiscal 2005, the Applied Biosystems group recorded a pre-tax benefit of $0.7 million as a result of the repayment of this loan by HTS Biosystems.

During the fourth quarter of fiscal 2004, the Celera Genomics group decided to pursue the sale of its Rockville, Maryland facility. As a result of this decision, we classified the related assets as assets held for sale within prepaid expenses and other current assets. In connection with the decision to sell the Rockville facility, the CeleraGenomics group recorded a pre-tax impairment charge of $18.1 million during the fourth quarter of fiscal 2004. This charge represented the write-down of the carrying amount of the facility to its estimated market value less estimated costs to sell. The estimated market value was based on a third-party appraisal. During the fourthquarter of fiscal 2005, the Celera Genomics group completed the sale of this facility and recorded a $3.6 million pre-tax favorable adjustment to the charge recorded in fiscal 2004.
*Fiscal 2005*
During fiscal 2005, the Applied Biosystems group recorded pre-tax charges consisting of the following components:
(Dollar amounts in millions) Employee-  Related  Charges Excess  Lease  Space Asset  Impairments Total  First quarter  **$ 7.3**  **$ —**  **$ —** **$****7.3** Second quarter  **2.9**  **2.3**     **5.2** Fourth quarter  **11.6**  **6.2**  **2.6**  **20.4**  Total charges  **21.8**  **8.5**  **2.6**  **32.9**  Cash payments  **10.5**  **0.2**     **10.7** Non-cash charges     **5.2**  **1.9**  **7.1** Reduction of expected costs  **0.3**        **0.3**  Balance at June 30, 2005  **$11.0**  **$3.1**  **$0.7** **$****14.8**  
The fiscal 2005 severance charges reflect the Applied Biosystems group’s decision to reduce and rebalance its workforce and were implemented as a result of a strategic and operational analysis conducted by management. The positions eliminated are primarily in the areas of R&D, manufacturing, marketing, and operations. Theseactions are intended to allow us to expand personnel in other functional areas including field sales and support, manufacturing quality, and advanced research, as well as better align our resources with the needs of our customers. Additionally, the severance charges recorded in the first and second quarters related, in part, to staffreductions intended to integrate the Applied Biosystems MALDI Time-of-Flight (“TOF”) product line into the Applied Biosystems/MDS Sciex Instruments joint venture with MDS Inc. We believe these actions will improve operational efficiency and quality, while assuring that our R&D spending remains aligned with our strategic initiatives.

As of June 30, 2005, all of the employees affected by the first and second quarter staff reductions had been terminated. In addition, as of June 30, 2005, substantially all of the affected employees related to the fourth quarter staff reduction had 

been notified and the majority    will be terminated or will no longer be actively employed by the end of the    first quarter of fiscal 2006. Through June 30, 2005, we made cash payments    of $7.2 million related to the first quarter termination charge, $2.3 million    related to the second quarter termination charge, and $1.0 million related    to the fourth quarter termination charge. In regards to the excess lease    space charges,  through June 30, 2005, we made cash payments of $0.2 million    related to the second quarter charge. These cash expenditures were funded    by cash provided by operating activities. In the third quarter of fiscal    2005, the Applied Biosystems group recorded a pre-tax benefit of $0.1 million    for a reduction in anticipated employee-related costs associated with the    severance and benefit charge recorded in the first quarter of fiscal 2005.    In the fourth quarter of fiscal 2005, the Applied Biosystems group recorded    a pre-tax benefit of $0.2 million for a reduction in anticipated employee-related    costs associated with the severance and benefit charge recorded in the  second    quarter of fiscal 2005. The remaining cash expenditures associated with the    employee terminations of approximately $11 million are expected to be    disbursed by the end of the third quarter of fiscal 2006.

The excess lease space charges represented the estimated cost of excess lease space less estimated future sublease income for certain leased facilities in Massachusetts and California whose leases extend through fiscal years 2007 to 2011. The asset impairment charges taken in the fourth quarter related to the write-down in value of theApplied Biosystems group’s facilities in San Jose, California and Houston, Texas. See Note 7 for more information on our California facility.

During fiscal 2005, the Celera Genomics group recorded pre-tax charges totaling $4.5 million related to our decision to discontinue promotion of products and most operations of Paracel, Inc., a business we acquired in fiscal 2000. Paracel developed high-performance genomic data and text analysis systems for the pharmaceutical,biotechnology, information services, and government markets. Since the focus of the Celera Genomics group had shifted to therapeutic discovery and development, Paracel was no longer deemed strategic to the overall business. The charge consisted of $1.1 million for severance and benefit costs, $1.7 million for excess facility leaseexpenses and asset impairments, and $1.7 million in cost of sales for the impairment of Paracel inventory. The charge for excess facility lease expenses and asset impairments was primarily for a revision to an accrual initially recorded in fiscal 2002 for the estimated cost of excess facility space for a lease that extends through fiscal 2011and to write off related fixed assets.

As of March 31, 2005, the majority of the affected Paracel employees had been terminated. Substantially all cash payments related to these terminations were made as of June 30, 2005. During fiscal 2005, we made cash payments of $2.1 million related to the excess lease space charge. The cash expenditures were funded byavailable cash.

In the fourth quarter of fiscal 2005, the Celera Genomics group recorded a pre-tax charge of $3.4 million related to the Online/Information Business, an information products and service business. As previously announced, the Celera

 

Back to Contents
Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   
Genomics group realigned its organization to focus on therapeutic discovery and development and as part of this realignment, the Online/Information Business was determined to be a non-strategic business. In fiscal2002, the Celera Genomics group entered into an agreement pursuant to which the Applied Biosystems group became the exclusive distributor of the Online/Information Business (see Note 14 for more information).

The pre-tax charge of $3.4 million consisted of $1.8 million for severance and benefit costs and $1.6 million for asset impairments, primarily related to information-technology leases. As of June 30, 2005, all affected employees had been notified and all are expected to be terminated by the end of the first quarter of fiscal 2006. Themajority of the cash expenditures related to this action are expected to be disbursed by the end of December 2005. No significant cash payments associated with this action were made through June 30, 2005.
**Other Events Impacting Comparability** *Asset dispositions and litigation settlements*
The following net gains have been recorded in the Consolidated Statements of Operations in asset dispositions and litigation settlements.

In March 2003, we received a ruling in favor of the Applied Biosystems group and MDS Inc. in a patent infringement lawsuit against Micromass U.K. Ltd. and its U.S. subsidiary, Micromass, Inc., both divisions of Waters Corporation. In April 2003, the Applied Biosystems group received a payment that represented its share of thejudgment proceeds on the successful completion of the lawsuit. We recorded a gain of $25.8 million, which represented the amount received, net of related fees and costs, in the fourth quarter of fiscal 2003.

In March 2004, the Applied Biosystems group and MDS Inc., through the Applied Biosystems/MDS Sciex Instruments joint venture, received a payment of $18.1 million from Waters Technologies Corporation in connection with the resolution of patent infringement claims between the parties. The Applied Biosystems group recorded anet gain of $6.7 million from legal settlements, including its share of the settlement between the Applied Biosystems/MDS Sciex Instruments joint venture and Waters Technologies Corporation.

During fiscal 2005, the Applied Biosystems group received a payment of $8.5 million from Illumina, Inc. in connection with the termination of a joint development agreement and settlement of a patent infringement claim and a breach of contract claim.

Also in fiscal 2005, the Applied    Biosystems group recorded a net pre-tax gain of $29.7 million for the    sale of intellectual property, manufacturing inventory, and research and    development assets related to the expansion of the scope of its existing joint    venture in life science mass spectrometry with MDS Inc. Under the terms of    thetransaction, we received $8 million in cash and a $30 million notereceivable for a 50% interest in intellectual property assets related to currentApplied Biosystems MALDI TOF mass spectrometry systems and 

next-generation product-related  manufacturing and research and development assets. The note receivable is due  in 5 years, of  which $6 million is payable in October 2006 and $8 million in each  of October 2007, 2008, and 2009.
*Investments*
The following gains have been recorded in the Consolidated Statements of Operations in gain (loss) on investments, net, except as noted.

The Applied Biosystems group recorded pre-tax gains of $11.2 million in fiscal 2004, related primarily to the sales of minority equity investments. These investment sales resulted from management’s decision to liquidate non-strategic investments.

The Celera Genomics group recorded a pre-tax gain of $24.8 million in the fourth quarter of fiscal 2004 from the sale of its investment in Discovery Partners International, Inc. (“DPI”) common stock. Our investment in DPI common stock, which resulted from our acquisition of Axys, had been accounted for under the equity method ofaccounting. In fiscal 2003, based on the decline in its market capitalization, DPI re-assessed the value of its goodwill and other long-lived assets and recorded an impairment charge as a result of this re-assessment. Accordingly, the Celera Genomics group recognized a non-cash charge of $15.1 million in other income (expense), net infiscal 2003, representing its share of the impairment charge.
*Tax items*
The effective tax rate for fiscal 2003 included a reduction of the valuation allowance on deferred tax assets resulting from the expected utilization of foreign tax credits and a reduction of the income tax liability due to the settlement of overseas tax audits for $27.8 million recorded in the fourth quarter of fiscal 2003. Our worldwidevaluation allowance was $86.5 million at June 30, 2003, which consisted of state deferred tax assets and foreign tax loss and foreign tax credit carryforwards. Our state deferred tax assets were subject to a full valuation allowance at June 30, 2003. The valuation allowance decrease in fiscal 2003 was due to our ability to utilize aportion of our foreign tax credits as well as our expectation that we will be able to utilize the remaining portion of those credits in the future. The fiscal 2003 reduction of the valuation allowance resulted from the implementation of a tax planning strategy to capitalize and amortize R&D expenses incurred in fiscal 2003 over a ten-yearperiod. The deferral of these tax deductions created additional U.S. tax eligible to be offset by the available foreign tax credit carryforwards that otherwise would have expired. We have determined that implementation of this tax planning strategy was both prudent and feasible in order to utilize foreign tax credits that were due toexpire. A valuation allowance has been maintained on the remaining carryforwards since we may not generate sufficient income, of the appropriate character, and in the particular jurisdictions, to realize the benefits before carryforward periods expire.

During the fourth quarter of fiscal 2005, the Applied Biosystems group recorded tax benefits of $23.5 million primarily related to additional U.S. R&D tax credit
61
 

Back to Contents
62Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   
carryforwards, expected results of Canadian examinations, and settlement of some U.K. tax matters. Also during the fourth quarter of fiscal 2005, the Celera Genomics group recorded a tax benefit of $2.2 millionrelated to additional U.S. R&D tax credits.
**Note** **3—Income Taxes**
Income before income taxes from continuing operations for fiscal 2003, 2004, and 2005 is summarized below:
(Dollar amounts in millions) 2003 2004 **2005**  Domestic* $69.7 $19.6 **$****14.9** Foreign  35.9  109.9  **158.4**  Total $105.6 $129.5 **$****173.3**  * U.S. and foreign entities includable in U.S. returns
Our provision (benefit) for income taxes from continuing operations for fiscal 2003, 2004, and 2005 consisted of the following:
(Dollar amounts in millions) 2003 2004 **2005**  **Currently Payable**          Domestic $15.0 $20.8 **$****0.8** Foreign  30.1  43.0  **47.6**  Total currently payable  45.1  63.8  **48.4**  **Deferred**          Domestic  (70.7) (39.9) **(28.3****)**Foreign  12.7  (9.4) **(6.6****)** Total deferred  (58.0) (49.3) **(34.9****)** Total provision (benefit) for income taxes $(12.9)$14.5 **$****13.5**  
 

 

 

 

 

 

 
 A reconciliation of the federal                          statutory tax rate to Applera’s, the Applied Biosystems group’s and the Celera Genomics group’s                          tax rate on continuing operations for fiscal 2003,  2004, and 2005 is set forth in the following table:          Applied Biosystems Group Celera Genomics Group Consolidated (Dollar amounts in millions) 2003 2004 **2005** 2003 2004 **2005** 2003 2004 **2005**  Federal statutory rate  35%  35%  **35%**  35%  35%  **35%**  35%  35%  **35%**     Tax at federal statutory rate $83.6 $83.9 **$****104.0** $(47.0)$(38.7)**$****(43.4****)**$37.0 $45.3 **$****60.6** State income taxes (net of federal benefit)  1.5  0.5  **0.2**  0.8  0.3  **0.8**  2.3  0.8  **1.0** Effect on income taxes from Singapore operations  (10.6) (10.8) **(10.7****)**          (10.6) (10.8) **(10.7****)**Effect on income taxes from other foreign operations  (5.6) (2.5) **(12.8****)**          (5.6) (2.5) **(12.8****)**Effect on income taxes from export operations  (5.4) 1.3  **(7.7****)**          (5.4) 1.3  **(7.7****)**Goodwill and intangibles  0.4  0.4  **(4.0****)** (0.9) (0.9) **(0.9****)** (0.5) (0.5) **(4.9****)**R&D tax credit  0.6  (7.5) **(10.0****)** (3.9) (10.1) **(3.1****)** (3.3) (17.6) **(13.1****)**Valuation allowance  (26.0) 0.7        (4.0)    (26.0) (3.3)   Other  0.6  1.5  **1.3**  (1.4) 0.3  **(0.2****)** (0.8) 1.8  **1.1**        Total provision (benefit) for income taxes $39.1 $67.5 **$****60.3** $(52.4)$(53.1)**$****(46.8****)**$(12.9)$14.5 **$****13.5**    
We have a zero percent tax grant expiring at the end of fiscal 2014 relating to our manufacturing operations in Singapore. In fiscal 2005, there were favorable tax adjustments of $25.7 million primarily related to additional U.S. R&D tax credit carryforwards, expected results of Canadian examinations, and settlement of some U.K. taxmatters.

U.S. income and foreign withholding    taxes were not provided on approximately $632.9 million of net accumulated    unremitted earnings from foreign subsidiaries at June 30, 2005. Substantially    all of this amount represents earnings indefinitely reinvested as part of  our ongoing business. It is not

practicable to estimate the    amount of taxes that might be payable on the eventual remittance of such    earnings. We are      currently evaluating the impact of the repatriation provision of the Jobs      Act. Accordingly, we have not adjusted the tax expense or deferred tax    liability to reflect the repatriation provisions of the Jobs Act. It is expected    that      a repatriation plan will be  presented to our board of directors during fiscal 2006. If approved, we will      record a one-time tax charge associated with the repatriation not to exceed      $500 million, estimated to be between $15 and $25 million. See      Note 1 for more information on the Jobs Act.

 

Back to Contents
Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   
Significant components of deferred    tax assets and liabilities at June 30, 2004 and 2005, are summarized    below:
(Dollar amounts in millions) 2004 **2005**  **Deferred Tax Assets**       Depreciation $6.3 **$****21.7** Inventories  10.3  **18.0** Postretirement and postemployment benefits  71.5  **62.7** Unrealized losses on investments  9.7  **2.9** Other accruals  17.7  **37.9** Tax credit and loss carryforwards  133.1  **137.6** Capitalized R&D expense  240.7  **247.6** State taxes  72.5  **79.6**  Subtotal  561.8  **608.0** Valuation allowance  (93.4) **(101.6****)** Total deferred tax assets  468.4  **506.4**  **Deferred Tax Liabilities**       Other accruals  14.0  **12.3** Intangible assets  6.5  **2.9**  Total deferred tax liabilities  20.5  **15.2**  Total deferred tax assets, net $447.9 **$****491.2**  
We have U.S. federal loss carryforwards as a result of various acquisitions ofapproximately $78.4 million that will expire between fiscal 2012 and 2022.The Internal

  Revenue Code has limited the amount of these net operating losscarryforwards that can be utilized annually to offset future taxable income as aresult of these acquisitions. We also have U.S. federal credit carryforwards of$90.0 million that expire between fiscal 2008 and 2025, and losscarryforwards of approximately $52.5 million in various foreign countrieswith varying expiration dates.

Our worldwide valuation allowance of $101.6 million at June 30, 2005, is detailed in the following table. The valuation allowance increased by $8.2 million in fiscal 2005, as a result of our assessment of the realization of certain state deferred tax assets and foreign losses. At June 30, 2004, our valuation allowance was$93.4 million, which consisted of $72.5 million related to state deferred tax assets and $20.9 million related to foreign tax losses and passive foreign tax credit carryforwards. In fiscal 2004, the valuation allowance increased by $6.9 million. The change in the valuation allowance in fiscal 2004 reflected an increase of $12.0 millionas a result of changes in our assessment of the realization of certain net operating loss carryforwards in various countries, primarily Germany, $3.3 million for deferred tax assets, and a decrease of $8.4 million to reflect the implementation of various tax planning strategies to utilize tax loss carryforwards in various countries, primarilyJapan. Our state deferred tax asset has always been subject to a full valuation allowance and was not separately presented in prior years. A valuation allowance has been maintained on these carryforwards, since we believe it is more likely than not that we may not generate sufficient income, of the appropriate character, and in theparticular jurisdictions, to realize the benefits before the carryforward periods expire.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Our deferred tax assets include benefits expected from the utilization of netoperating losses and credit carryforwards in the future. The following tableidentifies the various deferred tax asset components and the related allowancesthat existed at June 30, 2005. Due to time limitations on the ability torealize the benefit of the carryforwards, additional portions of these deferredtax assets may become unrealizable in the future.
(Dollar amounts in millions) Deferred Tax Asset Valuation Allowance Carryforward      period Earliest Fiscal      Year of Expiration  **Federal**             Net operating losses  **$**  **27.4**  **$**    **—**  15 – 20 years  2012 Foreign tax credits  **16.5**  **4.3**  10 years     2010 R&D tax credits  **51.5**     15 – 20 years  2008 Other tax credits  **22.0**     Unlimited       Temporary differences  **380.3**           Total federal  **497.7**  **4.3**        **State**             Net operating losses  **8.1**  **8.1**  Various      2006 Tax credits  **32.7**  **32.7**  Unlimited       Temporary differences  **38.8**  **38.8**        Total state  **79.6**  **79.6**        **Foreign**             Net operating losses  **18.5**  **17.7**  Various      2006 Other non-U.S. temporary 	differences  **(3.0****)**    	Various         Total foreign  **15.5**  **17.7**        Total  **$592.8**  **$101.6**          63
Back to Contents
64Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   **Note** **4—Retirement and Other Benefits** **Pension Plans, Retiree Healthcare, and Life Insurance Benefits**
We maintain or sponsor pension plans that cover a portion of our worldwide employees. Pension benefits earned are generally based on years of service and compensation during active employment. However, the level of benefits and terms of vesting may vary among plans. We determine the funding of the pension plans in accordancewith statutory funding requirements.

Our domestic pension plan covers U.S. employees hired prior to July 1, 1999. The accrual of future service benefits for all participants was frozen as of June 30, 2004. The effect of this freeze decreased our pension expense by approximately $7 million in fiscal 2005. Benefits earned under the plan will be paid out under existing planprovisions.

Our postretirement benefit plan    is unfunded and provides healthcare and life insurance benefits to domestic    employees hired prior to January 1, 1993, who retire and satisfy certain    service and age requirements. Generally, medical coverage pays a stated percentage    of most medical expenses, and in some cases, participants pay a co-payment.    Benefits are reduced for any deductible and for payments made by Medicare    or other group coverage. We share the cost of providing these benefits with    retirees.

During fiscal 2004, we adopted the provisions of FSP No. 106, “Accounting and Disclosure Requirements Related to the Medicare Prescription Drug, Improvement and Modernization Act of 2003.” We have determined that our prescription plan is “actuarially equivalent” to the Medicare Part D Coverage due to the fact that the planprovides a greater reimbursement than the Medicare benefit, at all levels of annual claim amounts. We remeasured our postretirement benefit obligation as of July 1, 2003, which resulted in a reduction of 

approximately $9 million in our accumulated postretirement benefit obligation (“APBO”). The postretirement benefit obligation  reflects that we will recognize the federal subsidy as an offset to plan costs and this amount was included as an unrecognized gain to the plan at June 30, 2004. The impact of this remeasurement is being amortized over the average working life of our employees eligible for postretirement benefits beginning July 1, 2004. The  remeasurement resulted in a reduction of net postretirement benefit cost of approximately $2 million in fiscal 2005.

We use a June 30 measurement date for the majority of our pension and postretirement benefit plans.

The components of net pension and postretirement benefit expenses for fiscal 2003, 2004, and 2005 are set forth in the following table:
(Dollar amounts in millions) 2003 2004 **2005**  **Pension**          Service cost $9.3 $10.1 **$****2.5** Interest cost  39.4  36.3  **39.9** Expected return on plan assets  (40.1) (37.3) **(41.8****)**Amortization of transition asset     0.2  **0.1** Amortization of prior service cost  (0.6) (0.1) **(0.1****)**Amortization of losses  1.1  4.6  **4.0** Special termination benefits and other     1.2  **1.0**  Net periodic expense $9.1 $15.0 **$****5.6**  **Postretirement Benefit**          Service cost $0.3 $0.3 **$****0.2** Interest cost  5.1  4.7  **3.9** Amortization of gains        **(0.9****)** Net periodic expense $5.4 $5.0 **$****3.2**  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following weighted-average    actuarial assumptions were used for the pension and postretirement plans    for the years ended June 30:
  Domestic Plans Foreign Plans   2003 2004 **2005** 2003 2004 **2005**  Discount rate used to determine benefit obligation:                   Pension  6.25%  6.50%  **5.25%**  1.50-5.25%  2.00-5.25%  **1.75–4.75%** Postretirement  6.25%  6.50%  **5.00%**          Discount rate used to determine net benefit cost  7.25%  6.25%  **6.50%**  2.50-5.75%  1.50-5.25%  **2.00-5.25%** Compensation increase  4.00%  4%  **—%**  1.25-3.50%  1.00-3.50%  **1.15-3.50%** Expected rate of return*  7.25-9.00%  6.25-8.50%  **6.50-8.50%**  2.00-5.20%  1.00-4.00%  **1.00-3.50%**  * 5.25 – 8.50% for domestic pension plan for fiscal 2006.
Back to Contents
Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   
The following tables set forth the changes in the benefit obligations and the plan assets, the funded status of the plans, and the amounts recorded in our Consolidated Statements of Financial Position at June 30, 2004 and 2005:
  Pension Postretirement (Dollar amounts in millions) 2004 **2005** 2004 **2005**  **Change in Benefit Obligation**             Benefit obligation, beginning of year  $604.8  **$637.7**  $ 80.2  **$ 65.0** Service cost  10.1  **2.5**  0.3  **0.2** Interest cost  36.3  **39.9**  4.7  **3.9** Participants’ contributions  0.3  **0.3**       Benefits paid  (34.2) **(38.3****)** (7.2) **(7.6****)**Actuarial (gain) loss  (6.5) **48.8**  (13.0) **6.9** Variable annuity unit value change  25.5  **17.4**       Foreign currency translation and other  1.4  **(1.4****)**       Benefit obligation  $637.7  **$706.9**  $ 65.0  **$ 68.4**  **Change in Plan Assets**             Fair value of plan assets, beginning of year  $491.4  **$586.7**  $    —  **$    —** Actual return on plan assets  75.0  **64.7**       Participants’ contributions  0.3  **0.3**       Company contributions  52.2  **1.2**  7.2  **7.6** Benefits paid  (32.4) **(36.0****)** (7.2) **(7.6****)**Foreign currency translation and other  0.2  **(0.1****)**       Fair value of plan assets  $586.7  **$616.8**  $    —  **$    —**  **Funded Status Reconciliation**             Funded status  $ (51.0) **$ (90.1****)** $(65.0) **$(68.4****)**Unrecognized prior service gain     **0.1**       Unrecognized transition asset  0.7  **0.7**       Unrecognized (gains) losses  114.8  **154.0**  (9.3) **(1.5****)** Net amount recognized  $  64.5  **$  64.7**  $(74.3) **$(69.9****)** **Amounts Recognized in the Consolidated Statements****of Financial Position**             Prepaid benefit cost  $    1.0  **$    1.8**  $    —  **$    —** Accrued benefit liability  (50.8) **(89.1****)** (74.3) **(69.9****)**Intangible asset  1.2  **1.0**       Minimum pension liability adjustment  113.1  **151.0**        Net amount recognized  $  64.5  **$  64.7**  $(74.3) **$(69.9****)** **Supplemental Information**             Accumulated benefit obligation  $632.0  **$702.1**  $ 65.0  **$ 68.4**  **Selected Information for Plans with Accumulated Benefit Obligations in Excess of Plan Assets**             Accumulated benefit obligation  $623.3  **$690.0**  $ 65.0  **$ 68.4** Projected benefit obligation  625.9  **692.6**  65.0  **68.4** Fair value of plan assets  574.2  **602.5**        
A minimum pension liability adjustment is required when the actuarial present value of accumulated plan benefits exceeds plan assets and accrued pension liabilities.
65
 

Back to Contents
66Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation
Our domestic pension plan weighted-average target range for fiscal 2005 and actual domestic and foreign pension plan asset allocation at June 30, 2004 and 2005, are as follows:
  Domestic Plan Foreign Plans   Percentage of Plan Assets Target Range Percentage of Plan Assets   2004 **2005** **2005** 2004 **2005**  Equity securities  60%  **58%**  **45 – 65%**  14%  **14%** Fixed income securities  33%  **30%**  **25 – 45%**  82%  **83%** Hedge funds  5%  **10%**  **0 – 14%**       Other  2%  **2%**  **0 – 12%**  4%  **3%**  Total  100%  **100%**     100%  **100%**    
Our    asset investment goal for the domestic pension plan is to achieve a long-term    targeted rate of return consistent with the ongoing nature of the plan’s liabilities. The plan’s assets are invested so that the total portfolio risk exposure and risk-adjusted returns meet the plan’s long-term total return goal. A trustee administers our pensionplan assets and investment responsibility for the assets is assigned to outside investment managers. The plan’sinvestment policy prohibits the use of derivatives for speculative purposes.The assets of the plan are periodically rebalanced to remain within the desiredtarget allocations.

The expected rate of return on assets is determined based on the historical results of the portfolio, the expected investment mix of the plans’ assets, and estimates of future long-term investment returns, and takes into consideration external actuarial advice.

For postretirement benefits measurement purposes, a 10% annual rate of increase in the per capita cost of covered healthcare benefits was assumed for plan year 2006, gradually reducing to 6.0% in 2014 and thereafter. A one-percentage-point change in assumed healthcare cost trend rates would have the following effects:
(Dollar amounts in millions) One-Percentage-Point Increase One-Percentage-Point Decrease  Effect on the total of service and interest cost components  **$0.3**  **$(0.3****)**Effect on postretirement benefit obligation  **$5.1**  **$(4.5****)** 
Our estimated future employer contributions, gross expected benefit payments, and gross amount of annual Medicare Part D federal subsidy expected to be received at June 30, 2005, are as follows:
(Dollar amounts in millions) Pension Postretirement  **Employer Contributions**    2006  **$    0.9**  **$  5.9**  **Expected Benefit Payments** 2006  **$  37.2**  **$  5.9** 2007  **37.6**  **6.0** 2008  **38.6**  **5.9** 2009  **39.2**  **5.8** 2010  **40.2**  **5.7** 2011 and thereafter  **250.2**  **26.2**  **Expected Federal Subsidy Receipts** 2006     **$  1.5** 2007     **1.5** 2008     **1.4** 2009     **1.4** 2010     **1.3** 2011 and thereafter     **5.6**  
Based on the level of our contributions to the U.S. pension plan during previous years, we do not expect to have to fund our U.S. pension plan in fiscal 2006 in order to meet minimum statutory funding requirements.
**Savings Plans**
We provide a 401(k) savings plan for domestic employees with a dollar-for-dollar matching of up to 6% for savings plan participants. Prior to fiscal 2005, automatic Company contributions were 2% of eligible compensation and a dollar-for-dollar matching contribution was up to 4% of eligible compensation. Employees not eligible forthe employee pension plan received an extra 2% Company contribution in addition to the automatic 2% Company contribution through June 30, 2004. Our contributions to this plan, net of plan forfeitures, were $20.8 million for fiscal 2003, $21.0 million for fiscal 2004, and $16.3 million for fiscal 2005. We recorded expenses forforeign defined contribution plans of $2.3 million in fiscal 2003, $2.2 million in fiscal 2004, and $2.5 million in fiscal 2005.
**Postemployment Benefits**
We provide some postemployment benefits to eligible employees, which generally include severance and outplacement costs, disability, and medical-related costs paid after employment but before retirement.

 

 

Back to Contents
Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   **Note 5—Stockholders’ Equity** **Capital Stock**
We have two classes of common stock: Applera-Applied Biosystems stock and Applera-Celera Genomics stock. Applera-Applied Biosystems stock is intended to reflect the relative performance of the Applied Biosystems group, and Applera-Celera Genomics stock is intended to reflect the relative performance of the Celera Genomicsgroup. Holders of Applera-Applied Biosystems stock and holders of Applera-Celera Genomics stock are stockholders of Applera. The groups are not separate legal entities and holders of these stocks are stockholders of a single company, Applera. As a result, our stockholders are subject to all of the risks associated with an investment inApplera and all of its businesses, assets, and liabilities.

At June 30, 2004 and 2005, we had one billion authorized shares of a class of common stock designated as Applera Corporation-Applied Biosystems Group Common Stock, 225 million authorized shares of a class of common stock designated as Applera Corporation-Celera Genomics Group Common Stock, and 10 millionauthorized shares of Applera Corporation preferred stock. Of the 10 million authorized 

shares of preferred stock, we    previously designated 80,000 shares of two series of participating junior    preferred stock in connection with our Stockholder Protection Rights Agreement    described below.
**Treasury Stock**
We have in the past, and may    in the future, repurchase shares of our Applera-Applied Biosystems stock    or Applera-Celera Genomics stock. During the first quarter of fiscal 2004,    our board of directors authorized the repurchase of up to $200 million    of Applera-Applied Biosystems stock. Additionally, during the fourth quarter    of fiscal  2004, our board of directors authorized the repurchase of up to    an additional $100 million of Applera-Applied Biosystems stock. In July    2005, we announced that our board of directors authorized the repurchase    of up to 10% of the outstanding shares of Applera-Applied Biosystems stock.    Repurchases may also be made under  standing resolutions of our board of    directors to replenish shares issued under our various stock plans. These    resolutions, which have no time restrictions, delegate authority to management    to purchase shares from time to time at price levels it deems appropriate    through open market or negotiated purchases.

 

 

 

 

 

 

 

 

 

 

 

The following table provides    transactions relating to our common stocks:
  Applera-Applied Biosystems Stock Applera-Celera Genomics Stock (Shares in millions)  Issued Shares  Treasury StockShares  Issued Shares  Balance at June 30, 2003  212.8  3.6  72.3 Purchases of shares for treasury stock     15.4    Issuances of shares under stock plans  0.2  (1.7) 0.8  Balance at June 30, 2004  213.0  17.3  73.1 Purchases of shares for treasury stock     **0.3**    Issuances of shares under stock plans     **(3.0****)** **1.2**  Balance at June 30, 2005  **213.0**  **14.6**  **74.3**    **Stock Purchase Warrants**
At June 30, 2004, we had approximately 262,000 warrants outstanding with exercise prices ranging from $29.96 to $93.63. We assumed these warrants in connection with our acquisition of Axys in fiscal 2002 and each warrant was convertible into one share of Applera-Celera Genomics stock. These warrants had a weighted averageexercise price of $72.27 per share and expired at various dates during fiscal 2005.
**Stockholder Protection Rights Agreement**
In connection with our recapitalization, we adopted a Stockholder Protection Rights Agreement (the “Rights Agreement”) to protect stockholders against abusive takeover tactics. Under the Rights Agreement, we will issue one right for every four shares of Applera-Applied Biosystems stock (an “Applera-Applied Biosystems Right”), whichwill allow holders to purchase one-thousandth of a share of our Series A participating junior preferred stock at a purchase price of $425, subject to adjustment (the “Series A Purchase Price”), and one right for every two shares of Applera-Celera Genomics stock (an “Applera-Celera Genomics Right”), which 

will allow holders to purchase    one-thousandth of a share of our Series B participating junior preferred    stock at a purchase price of $125, subject to adjustment (the “Series B Purchase Price”).

An Applera-Applied Biosystems Right or an Applera-Celera Genomics Right will be exercisable only if a person or group (“Acquiring Person”): (a) acquires 15% or more of the shares of Applera-Applied Biosystems stock then outstanding or 15% or more of the shares of Applera-Celera Genomics stock then outstanding or (b) commencesa tender offer that would result in such person or group owning such number of shares.

If any person or group becomes    an Acquiring Person, each Applera-Applied Biosystems Right and each Applera-Celera    Genomics Right will entitle its holder to purchase, for the Series A Purchase    Price or the Series B Purchase Price, as applicable, a number of shares of    the related class of our common stock having a market value equal  to twice    such purchase price.

If following the time a person    or group becomes an Acquiring Person, we are acquired in a merger or other    business combination transaction and we are not the surviving
67
 

Back to Contents
68Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   
corporation; any person consolidates or merges with us and all or part of the common stock is converted or exchanged for securities, cash, or property of any other person; or 50% or more of our assets or earningspower is sold or transferred, each Applera-Applied Biosystems Right and each Applera-Celera Genomics Right will entitle its holder to purchase, for the Series A Purchase Price or Series B Purchase Price, as applicable, anumber of shares of common stock of the surviving entity in any such merger, consolidation, or business combination or the purchaser in any such sale or transfer having a market value equal to twice the Series APurchase Price or Series B Purchase Price.

The rights are redeemable at our option at one cent per right prior to a person or group becoming an Acquiring Person.
**Note** **6—Stock Plans** **Stock Option Plans**
Under our stock option plans, we grant stock options to employees that allow them to purchase shares of our two classes of common stock. In addition, members of our board of directors receive stock options for their service on our board. Generally, we issue stock options at their fair market value at the date of grant. With theexception of options granted in the fourth quarter of fiscal 2005, as discussed below, most options vest equally over a four-year service period and expire ten years from the grant date. At June 30, 2005, 45.6 million shares of Applera-Applied Biosystems stock and 20.2 million shares of Applera-Celera Genomics stock wereauthorized for grant of options. In addition, in connection with the acquisition of Axys in fiscal 2002, approximately 600,000 shares of Applera-Celera Genomics stock were available at June 30, 2005, for potential future issuance under the Axys Pharmaceuticals, Inc. 1997 Equity Incentive Plan. The summary below describes our stockoption plans. See Note 1 for a discussion of the acceleration of vesting related to our stock plans.
**1999 Stock Incentive Plans**
Our stockholders first approved the Applera Corporation/Applied Biosystems Group 1999 Stock Incentive Plan (the “Applera-Applied Biosystems Group Plan”) and the Applera Corporation/Celera Genomics Group 1999 Stock Incentive Plan (the “Applera-Celera Genomics Group Plan”) in April 1999. The Applera-Applied Biosystems GroupPlan authorizes grants of Applera-Applied Biosystems stock options, restricted stock units, and other equity awards. The Applera-Celera Genomics Group Plan authorizes grants of Applera-Celera Genomics stock options, restricted stock units, and other equity awards. Directors, officers, key employees, and consultants with responsibilitiesinvolving both the Applied Biosystems group and the Celera Genomics group may be granted awards under both incentive plans in a manner which reflects their 

responsibilities. Our board    of directors believes that granting awards tied to the performance of the    group in which the participants work and, in certain cases the other group,    is in the best interests of both the Company and its stockholders.

During the fourth quarter of    fiscal 2005, our board of directors approved options to purchase 2.8 million    shares of Applera-Applied Biosystems stock and 1.3 million shares of    Applera-Celera Genomics stock to some employees, including executive officers.    These options have a term of ten years from the grant date, and were fully     vested and exercisable as of the grant date. However, shares acquired upon    the exercise of these options are subject to a restriction on transfer (covering    sales, gifts, pledges, and any other method of disposition). The transfer    restriction will lapse, for each grant of options to purchase Applera-Applied    Biosystems stock and Applera-Celera Genomics stock, on 25% of the shares    covered by these grants on each of the first four anniversaries of the grant    date. Also, the transfer restriction will lapse in full upon termination    of employment for any reason.
**Employee Stock Purchase Plans**
Our employee stock purchase plans offer U.S. and some non-U.S. employees the right to purchase shares of Applera-Applied Biosystems stock and/or Applera-Celera Genomics stock. Employees are eligible to participate through payroll deductions of up to 10% of their compensation. In the U.S., shares are purchased at 85% of thelower of the average market price at the beginning or the end of each three-month offering period. Provisions of the plan for employees in countries outside the U.S. vary according to local practice and regulations. The following table presents shares issued under the employee stock purchase plans for the fiscal years ended June 30:
  2003 2004 **2005**  Applera-Applied Biosystems stock  504,000  432,000  **359,000** Applera-Celera Genomics stock  525,000  372,000  **378,000**   **Director Stock Purchase and       Deferred Compensation Plan**
We have a Director Stock Purchase and Deferred Compensation Plan that requires our non-employee directors to apply at least 50% of their annual retainer and other board fees to the purchase of common stock. Purchases of Applera-Applied Biosystems stock and Applera-Celera Genomics stock are made in a ratio approximately equalto the number of shares of Applera-Applied Biosystems stock and Applera-Celera Genomics stock outstanding. The purchase price is the fair market value on the date of purchase. At June 30, 2005, we had approximately 195,000 shares of Applera-Applied Biosystems stock and approximately 43,000 shares of Applera-Celera Genomicsstock available for issuance under this plan.

 

Back to Contents
Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   **Restricted Stock**
As part of our stock incentive plans, employees and non-employee directors have been granted shares of restricted stock that vest when certain continuous employment/service restrictions and/or specified performance goals are achieved. The fair value of shares granted is generally expensed over the restricted periods. The periods mayvary depending on the estimated achievement of performance goals. The following table presents information regarding our restricted stock for the fiscal years ended June 30:
(Dollar amounts in millionsexcept per share amounts) 2003 2004 **2005**  Shares granted:          Applera-Applied Biosystems stock  4,000  272,000  **44,000** Applera-Celera Genomics stock  21,000  82,000  **2,000** Compensation expense $4.8 $3.2 **$****3.3** Unearned compensation $1.8 $5.4 **$****3.0** Weighted-average grant date fair value:          Applera-Applied Biosystems stock $20.00 $21.41 **$****19.80** Applera-Celera Genomics stock $9.62 $10.48 **$****12.01**    
We record unearned compensation in capital in excess of par value within stockholders’ equity.
**Performance Unit Bonus Plan**
We adopted a Performance Unit Bonus Plan in fiscal 1997. This plan authorizes a performance unit bonus pool that is tied to the grant of corresponding options under our Applera-Applied Biosystems Group Plan and our Applera-Celera Genomics Group Plan. Performance units granted under the plan represent the right to receive a cashpayment from us at a specified date in the future. The plan was amended during fiscal 2004 to eliminate the issuance of stock as a form of payment. The amount of the payment for each grant is determined on the date of grant. Performance units can be granted in relation to either or both classes of our common stock. Theperformance units vest when the applicable class or classes of common stock reach and maintain specified price levels, based on their moving average price, for a specified period.

We granted four series of performance units in fiscal 2003. We did not grant any performance units in fiscal 2004 and 2005. Accordingly, we recognized compensation expense of $1.6 million in fiscal 2003, $1.8 million in fiscal 2004, and $0.9 million in fiscal 2005.
**Stock Option Activity**
Transactions relating to our stock option plans are summarized below:
  Applera-Applied Biosystems Stock    Number ofOptions  WeightedAverageExercise Price  **Fiscal 2003**       Outstanding at June 30, 2002  34,040,464  $37.40 Granted  9,043,630  16.02 Exercised  815,865  11.51 Cancelled  3,225,690  40.67  Outstanding at June 30, 2003  39,042,539  32.69 Exercisable at June 30, 2003  19,497,929  39.80  **Fiscal 2004**       Granted  5,223,048  $19.37 Exercised  1,268,475  12.83 Cancelled  3,561,123  37.46  Outstanding at June 30, 2004  39,435,989  31.14 Exercisable at June 30, 2004  22,777,266  39.25  **Fiscal 2005**       Granted  **3,569,099**  **$20.85** Exercised  **2,787,480**  **15.29** Cancelled  **4,671,192**  **35.00**  Outstanding at June 30, 2005  **35,546,416**  **30.86** Exercisable at June 30, 2005  **34,953,415**  **31.17**  
 
69
Back to Contents
70Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation     Applera-Celera Genomics Stock    Number ofOptions  WeightedAverageExercise Price  **Fiscal 2003**       Outstanding at June 30, 2002  11,295,843  $25.40 Granted  2,163,459    9.27 Exercised  820,772    7.44 Cancelled  2,106,994  33.54  Outstanding at June 30, 2003  10,531,536  21.88 Exercisable at June 30, 2003  5,861,305  23.04  **Fiscal 2004**       Granted  1,681,327  $10.66 Exercised  392,355    5.95 Cancelled  734,793  31.67  Outstanding at June 30, 2004  11,085,715  19.90 Exercisable at June 30, 2004  6,674,768  23.90  **Fiscal 2005**       Granted  **1,401,850**  **$10.28** Exercised  **884,247**    **7.34** Cancelled  **1,134,184**  **26.35**  Outstanding at June 30, 2005  **10,469,134**  **18.96** Exercisable at June 30, 2005  **10,393,774**  **19.07**  
As a result of the accelerated vesting, options to purchase 13.6 million shares of Applera-Applied Biosystems stock and 3.6 million shares of Applera-Celera Genomics stock became exercisable immediately on January 20, 2005, and options to purchase 405,000 shares of Applera-Applied Biosystems stock and 42,500 shares ofApplera-Celera Genomics stock became exercisable immediately on June 2, 2005.

The following tables summarize information regarding options outstanding and exercisable at June 30, 2005:
     Weighted Average (Option prices per share)  Number ofOptions  ExercisePrice  ContractualLifeRemainingin Years  **Applera-Applied Biosystems Stock**    **Options Outstanding**          At $  1.82 – $  16.00  **6,771,402**  **$14.81**  **6.6** At $16.01 – $  20.50  **7,304,819**  **19.11**  **6.8** At $20.51 – $  25.00  **8,683,664**  **21.31**  **7.6** At $25.51 – $110.00  **12,786,531**  **52.56**  **4.6**  **Options Exercisable**          At $  1.82 – $  16.00  **6,465,491**  **$15.25**    At $16.01 – $  20.50  **7,074,553**  **19.11**    At $20.51 – $  25.00  **8,628,840**  **21.30**    At $25.51 – $110.00  **12,784,531**  **52.56**     **Applera-Celera Genomics Stock**    **Options Outstanding**          At $  0.74 – $    9.00  **2,472,135**  **$**  **7.79**  **3.3** At $  9.01 – $  15.00  **4,875,614**  **10.23**  **8.1** At $15.01 – $  27.00  **1,503,872**  **19.48**  **6.3** At $27.01 – $133.00  **1,617,513**  **61.89**  **5.1**  **Options Exercisable**          At $  0.74 – $    9.00  **2,415,801**  **$**  **7.97**    At $  9.01 – $  15.00  **4,864,827**  **10.23**    At $15.01 – $  27.00  **1,495,633**  **19.47**    At $27.01 – $133.00  **1,617,513**  **61.89**     **Pro Forma Disclosure**
See Note 1 for the pro forma disclosures of income from continuing operations and earnings per share required under SFAS No. 123.
**Note** **7—Additional Information** **Selected Accounts**
The following table provides the major components of selected accounts of the Consolidated Statements of Financial Position at June 30:
(Dollar amounts in millions) 2004 **2005**  **Other Long-Term Assets**       Equity investments $38.3 **$****31.2** Goodwill  39.4  **39.4** Noncurrent deferred tax asset, net  444.1  **482.8** Other  81.6  **84.8**  Total other long-term assets $603.4 **$****638.2**  **Other Accrued Expenses**       Deferred revenues $101.0 **$****94.6** Other  171.4  **155.5**  Total other accrued expenses $272.4 **$****250.1**  **Other Long-Term Liabilities**       Accrued postretirement benefits $69.1 **$****64.4** Accrued pension benefits  50.9  **89.0** Other  75.0  **74.0**  Total other long-term liabilities $195.0 **$****227.4**  
Equity investments consist of common stock in publicly-traded companies and common stock and preferred stock in privately-held companies. Included in equity investments are minority equity interests of $16.2 million in fiscal 2004 and $11.3 million in fiscal 2005. We recorded unrealized gains of $11.7 million at June 30, 2004,and $6.8 million at June 30, 2005, on investments in publicly-traded companies. During fiscal 2004, the Applied Biosystems group recorded gains of $11.2 million related primarily to the sales of minority equity investments and the Celera Genomics group recorded gains of $24.3 million related primarily to the sale of its DPIinvestment. These investment sales resulted from management’s decision to liquidate non-strategic investments.
**Assets Held for Sale**
In fiscal 2004, the Celera Genomics group decided to pursue the sale of its Rockville, Maryland facility. As a result of this decision, in the fourth quarter of fiscal 2004, we reclassified $40.3 million of property, plant and equipment into assets held for sale within prepaid expenses and other current assets. In connection with the decisionto sell this facility, the Celera Genomics group recorded a pre-tax impairment charge of $18.1 million during the fourth quarter of fiscal 2004. This charge represented the write-down of the carrying amount of the facility to its estimated market value less estimated costs to sell. The Celera Genomics group completed the sale of thisfacility in the fourth quarter of fiscal 2005 and received net proceeds of $42.4 million. In connection with this sale, the

Back to Contents
Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   
Celera Genomics group recognized a $3.6 million pre-tax favorable adjustment to the charge recorded in the fourth quarter of fiscal 2004.

In connection with the reduction and rebalancing of the Applied Biosystems group’s workforce during the fourth quarter of fiscal 2005, the Applied Biosystems group decided to pursue the sale of its San Jose, California facility. As a result of this decision, at June 30, 2005, we reclassified $7.0 million of assets into assets held for salewithin prepaid expenses and other current assets. The reclassified assets consist of property, plant and equipment. The sale of this facility is expected to occur during the next twelve months. Additionally, the Applied Biosystems group recorded a pre-tax impairment charge of $1.7 million during the fourth quarter of fiscal 2005. Thischarge represents the write-down of the carrying amount of the facility to its current estimated market value less estimated costs to sell.
**Other Income (Expense), Net**
The following table provides the major components of other income (expense), net in the Consolidated Statements of Operations for the fiscal years ended June 30:
(Dollar amounts in millions) 2003 2004 **2005**  DPI equity investment income (loss)  $(17.7) $0.6 **$****—** Other equity investment losses  (1.2) (1.0)   Foreign currency gains (losses)  3.0  (0.6) **3.5** Other  3.6  3.4  **1.0**  Total other income (expense), net  $(12.3) $2.4 **$****4.5**  
In fiscal 2003, as part of our DPI equity investment loss, we recorded an impairment charge of $15.1 million. See Note 2 for more information.
**Note** **8—Debt and Lines of Credit**
Short-term debt at June 30 is summarized as follow:
(Dollar amounts in millions) 2004 **2005**  Current portion of long-term debt       $6.1 **$**    **—**  Total short-term debt       $6.1 **$**     **—**  
In connection with the acquisition of Axys, we assumed $26.0 million of 8% senior secured convertible notes. Interest was payable quarterly and the principal was payable at maturity as a lump sum. Holders of notes having an aggregate principal amount of $10 million exercised their right following the acquisition to require us torepurchase such notes, which we did in January 2002. During fiscal 2003, we purchased $18.1 million of non-callable U.S. government obligations and substituted these government obligations for our shares of DPI common stock that originally collateralized the notes. The government obligations were required to be held in a trust andthe proceeds from the maturation of, and interest payments on, these obligations funded the interest and principal payments under the notes. During fiscal 2004, we repurchased $10.0 million in principal amount 

of the outstanding notes. We    repaid the remaining principal amount of the outstanding notes of approximately    $6 million  on their maturity date in fiscal 2005.

We maintain a $200 million unsecured revolving credit agreement with four banks that matures on April 15, 2010, under which there were no borrowings outstanding at June 30, 2005. This credit agreement replaced a $50 million unsecured revolving credit agreement that was scheduled to mature in April 2005, under which therewere no borrowings outstanding at June 30, 2004. Borrowings under this credit facility may be made in U.S. dollars and other currencies, and interest rates will vary depending on whether the borrowings are undertaken in the domestic or international markets. Commitment and facility fees are based on our long-term seniorunsecured non-credit enhanced debt ratings. We are required to maintain certain minimum net worth and leverage ratios under this credit agreement.
**Note** **9—Commitments, Contingencies, and Guarantees**
Future minimum payments at June 30, 2005, under non-cancelable operating leases for real estate and equipment were as follows:
(Dollar amounts in millions)     2006 **$****35.4** 2007  **23.7** 2008  **17.7** 2009  **16.0** 2010  **12.4** 2011 and thereafter  **34.7**  Total **$****139.9**  
We recorded rental expense of $64.9 million for fiscal 2003, $60.7 million for fiscal 2004, and $57.1 million for fiscal 2005.
**Guarantees**
There are three types of guarantees related to our business activities that are included in the scope of FIN. 45, “Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others, an interpretation of Statement of Financial Accounting Standards Nos. 5, 57, and 107 andrescission of FIN 34”: leases with recourse provisions; the guarantee of pension benefits for a divested business; and product warranties. See Note 1 for more information on product warranties.
**Leases**
We provide lease-financing options to our customers through third party financing companies. For some leases, the financing companies have recourse to us for any unpaid principal balance upon default by the customer. The leases typically have terms of two to three years and are secured by the underlying instrument. In the event ofdefault by a customer, we would repossess the underlying instrument. We record revenues from these transactions upon the completion of installation/acceptance of products and maintain a reserve forestimated losses on all lease transactions with recourse
71
 

Back to Contents
72Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   
provisions based on historical default rates and current economic conditions. At June 30, 2005, the financing companies’ outstanding balance of lease receivables with recourse to us was $9.4 million. We believe thatwe could recover the entire balance from the resale of the underlying instruments in the event of default by all customers.
**Pension Benefits**
As part of the divestiture of our Analytical Instruments business in fiscal 1999, the purchaser of the Analytical Instruments business is paying for the pension benefits for employees of a former German subsidiary. However, we guaranteed payment of these pension benefits should the purchaser fail to do so, as these benefits were nottransferable to the buyer under German law. The guaranteed payment obligation, which approximated $55 million at June 30, 2005, is not expected to have a material adverse effect on our Consolidated Statements of Financial Position.
**Indemnifications**
In the normal course of business, we enter into some agreements under which we indemnify third parties for intellectual property infringement claims or claims arising from breaches of representations or warranties. In addition, from time to time, we provide indemnity protection to third parties for claims relating to past performancearising from undisclosed liabilities, product liabilities, environmental obligations, representations and warranties, and other claims. In these agreements, the scope and amount of remedy, or the period in which claims can be made, may be limited. It is not possible to determine the maximum potential amount of future payments, if any,due under these indemnities due to the conditional nature of the obligations and the unique facts and circumstances involved in each agreement. Historically, payments made related to these indemnifications have not been material to our consolidated financial position.
**Legal Proceedings**
We are involved in various lawsuits, arbitrations, investigations, and other legal actions from time to time with both private parties and governmental entities. These legal actions currently involve, for example, commercial, intellectual property, antitrust, environmental, securities, and employment matters. We believe that we havemeritorious defenses against the claims currently asserted against us and intend to defend them vigorously. The following is a description of some claims we are currently defending, including some counterclaims brought against us in response to claims filed by us against third parties.

Applera and some of its officers are defendants in a lawsuit brought on behalf of purchasers of Applera-Celera Genomics stock in our follow-on public offering of Applera-Celera Genomics stock completed on March 6, 2000. In the offering, we sold an aggregate of approximately 4.4 million shares of Applera-Celera Genomics stockat a public offering price of $225 per share. The lawsuit, which was commenced with the filing of several complaints in April and May 2000, is pending in the U.S. District Court for the District of Connecticut, and 

an amended consolidated complaint    was filed on August 21, 2001. The consolidated complaint generally alleges that the  prospectus used in connection with the offering was inaccurate or misleading because it failed to adequately disclose the alleged opposition of the Human Genome Project and two of its supporters, the governments of the U.S. and the U.K., to providing patent protection to our genomic-based products. Although the Celera Genomics  group has never sought, or intended to seek, a patent on the basic human genome sequence data, the complaint also alleges that we did not adequately disclose the risk that the Celera Genomics group would not be able to patent this data. The consolidated complaint seeks monetary damages, rescission, costs and expenses, and other  relief as the court deems proper. On March 31, 2005, the Court certified the case as a class action.

We are involved in several litigation    matters with MJ Research, Inc. (acquired by Bio-Rad Laboratories, Inc. since    the commencement of litigation), which commenced with our filing claims against    MJ Research on June 24, 1998, in the U.S. District Court for the District    of Connecticut based on its alleged infringement of some polymerase  chain    reaction, or PCR, patents. In response to our claims, MJ Research filed counterclaims    including, among others, allegations that we have licensed and enforced these    patents through anticompetitive conduct in violation of federal and state    antitrust laws, that some of our patents are unenforceable because of patent    misuse, and thatsome of our patents are invalid and unenforceable because of inequitable conduct.    MJ Research is seeking injunctive relief, monetary damages, costs and expenses,    and other relief. These matters were adjudicated in part through a jury trial,    which resulted in a verdict in our favor rendered in April 2004, and the    remaining issues were  resolved through a series of summary judgments granted    by the District Court in several rulings issued in our favor between December    2004 and April 2005. As a result, MJ Research’s counterclaims were rejected    and MJ Research has been held liable to us and Roche Molecular Systems, also    a party to the litigation, for infringement of  U.S. Patent Nos. 4,683,195,    4,683,202 and 4,965,188 (each relates to PCR process technology) and U.S.    Patent Nos. 5,656,493, 5,333,675 and 5,475,610 (each relates to thermal cycler    instrument technology). Further, the infringement of the ’195, ’202, ’188    and ’493 patents was held to be willful. As a result of these decisions    in our  favor, in April 2005, the District Court awarded us and Roche Molecular    Systems damages of $35.4 million plus reasonable attorneys’ fees,    an enhancement of the original damages award granted by the jury in the amount    of $19.8 million.MJ Research has filed a noticeof appeal. Additionally, on August 30, 2005, the Court issued an order enjoining    MJ Research from infringing U.S. Patent Nos. 5,333,675, 5,656,493 and 5,475,610.

Subsequent to the filing of    our claims against MJ Research which are described in the preceding paragraph,    on September 21, 2000, MJ Research filed an action against us in the    U.S. District Court for the District of Columbia. This complaint is based    on the allegation that the patents underlying our DNA sequencing instruments    were  improperly obtained because one of the alleged inventors, whose work    was funded in part by the U.S. government, was knowingly 

 

Back to Contents
Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   
omitted from the    patent applications. Our patents at issue are  U.S. Patent Nos. 5,171,534, entitled “Automated DNA Sequencing Technique,” 5,821,058, entitled “Automated DNA Sequencing Technique,” 6,200,748, entitled “Tagged Extendable Primers and Extension Products,”and 4,811,218, entitled “Real Time Scanning Electrophoresis Apparatus for DNA Sequencing.” The complaint asserts violations of the federal False Claims Act and the federal Bayh Dole Act, invalidity andunenforceability of the patents at issue, patent infringement, and various other civil claims against us. MJ Research is seeking monetary damages, costs and expenses, injunctive relief, transfer of ownership of thepatents in dispute, and other relief as the court deems proper. MJ Research claims to be suing in the name of the U.S. government although the government has to date declined to participate in the suit. OnOctober 9, 2003, the case against us was dismissed but MJ Research has filed an appeal.

Promega Corporation filed a patent infringement action against Lifecodes Corporation, Cellmark Diagnostics, Genomics International Corporation, and us in the U.S. District Court for the Western District of Wisconsin on April 24, 2001. The complaint alleges that the defendants are infringing Promega’s U.S. Patent Nos. 6,221,598 and5,843,660, both entitled “Multiplex Amplification of Short Tandem Repeat Loci,” due to the defendants’ sale of forensic identification and paternity testing kits. Promega is seeking monetary damages, costs and expenses, injunctive relief, and other relief as the court deems proper. The defendants answered the complaint on July 9,2001, and we asserted counterclaims alleging that Promega is infringing our U.S. Patent No. 6,200,748, entitled “Tagged Extendable Primers and Extension Products,” due to Promega’s sale of forensic identification and paternity testing kits. As a result of settlement negotiations, the case was dismissed without prejudice onOctober 29, 2002, but could be re-filed against us if settlement negotiations are not successful.

Beckman Coulter, Inc. filed a patent infringement action against us in the U.S. District Court for the Central District of California on July 3, 2002. The complaint alleges that we are infringing Beckman Coulter’s U.S. Patent Nos. RE 37,606 and 5,421,980, both entitled “Capillary Electrophoresis Using Replaceable Gels,” and U.S. PatentNo. 5,552,580, entitled “Heated Cover Device.” The allegedly infringing products are the Applied Biosystems group’s capillary electrophoresis sequencing and genetic analysis instruments, and PCR and real-time PCR systems. Since Beckman Coulter filed this claim, U.S. Patent No. 5,421,980 has been reissued as U.S. Patent No. RE37,941, entitled “Capillary Electrophoresis Using Replaceable Gels.” On January 13, 2003, the court permitted Beckman Coulter to make a corresponding amendment to its complaint. Beckman Coulter is seeking monetary damages, costs and expenses, injunctive relief, and other relief as the court deems proper. On February 10, 2003,we filed our answer to Beckman Coulter’s allegations, and counterclaimed for declaratory relief that the Beckman Coulter patents underlying Beckman Coulter’s claim are invalid, unenforceable, and not infringed. We are seeking dismissal of Beckman Coulter’s complaint, costs and expenses, declaratory and injunctive relief, and otherrelief as the court deems proper.

Genetic Technologies Limited filed a patent infringementaction against us in the U.S. District Court for the NorthernDistrict of California on March 26, 2003. They filed an amended complaint against us on August 12, 2003. The amended complaint alleges that we are infringing U.S. Patent No. 5,612,179, entitled “Intron Sequence  Analysis Method for Detection of Adjacent and Remote Locus Alleles as Haplotypes,” and U.S. Patent No. 5,851,762, entitled “Genomic Mapping Method by Direct Haplotyping Using Intron Sequence Analysis.” The allegedly infringing products are cystic fibrosis reagent kits, TaqMan® genotyping and gene expression assay products for  non-coding regions, TaqMan genotyping and gene expression assay services for non-coding regions, AmpFLSTR® kits, the SNPlexTM Genotyping System, the SNPbroswerTM tool, and the Celera Discovery SystemTM (“CDS”). The complaint also alleges that haplotyping analysis performed by our businesses infringes the patents identified  above. Genetic Technologies Limited is seeking monetary damages, costs, expenses, injunctive relief, and other relief as the court deems proper.

On-Line Technologies, Inc. (since acquired by MKS Instruments, Inc.) filed claims for patent infringement, trade secret misappropriation, fraud, breach of contract and unfair trade practices against PerkinElmer, Inc., Sick UPA, GmbH, and us in the U.S. District Court for the District of Connecticut on or about November 3, 1999. Thecomplaint alleged that products called the Spectrum One and the MCS100E manufactured by former divisions of the Applied Biosystems group, which divisions were sold to the co-defendants in this case, were based on allegedly proprietary information belonging to On-Line Technologies and that the MCS100E infringed U.S. PatentNo. 5,440,143. On-Line Technologies sought monetary damages, costs, expenses, injunctive relief, and other relief. On April 2, 2003, the U.S. District Court for the District of Connecticut granted our summary judgment motion and dismissed all claims brought by On-Line Technologies. On-Line Technologies filed an appeal with theU.S. Court of Appeals for the Federal Circuit seeking reinstatement of its claims, and on October 13, 2004, the Court of Appeals upheld dismissal of all claims except for the patent infringement claim, which will be decided by the District Court in subsequent proceedings.

Promega Corporation filed an    action against us and some of our affiliates and Roche Molecular Systems,    Inc. and Hoffmann-La Roche, Inc. in the U.S. District Court for the Eastern    District of Virginia on April 10, 2000. The complaint asserts violations    of the federal False Claims Act. On November 12, 2003, the court issued    an order to  have the complaint, which had previously been sealed, served    on us and the other defendants. On February 9, 2004, we waived service    of the complaint, which initiated our direct involvement in the case. The    complaint alleges that we and Hoffmann-La Roche overcharged the U.S. government    for thermal cyclers and PCR reagents. The  overcharges are alleged to be    the result of a licensing program based in part on U.S. Patent No. 4,889,818.    Promega is asserting that U.S. Patent No. 4,889,818 was obtained fraudulently    and that the licensing program run by us and Hoffmann-La Roche is the cause    of the alleged overcharging. Promega is seeking monetary damages.  Promega    claims to be suing in the name of the U.S. government 
73
 

Back to Contents
74Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   
although the government    has to date declined to participate in the suit. On June 29, 2004, the    court granted our motion to  dismiss for failure to state a claim upon which relief could be granted, but gave Promega the right to file an amended complaint. Promega filed an amended complaint on July 13, 2004, and we filed another motion todismiss on August 6, 2004. The court granted our second motion and dismissed the case with prejudice on August 20, 2004. Promega has filed an appeal with the U.S. Court of Appeals for the Fourth Circuit.

Bio-Rad Laboratories, Inc. filed a patent infringement, trademark infringement, and unfair competition action against us in the U.S. District Court for the Northern District of California on December 26, 2002. The complaint alleges that we are infringing Bio-Rad’s U.S. Pat. No. 5,089,011, entitled “Electrophoretic Sieving in Gel-FreeMedia with Dissolved Polymers,” and infringing Bio-Rad’s “Bio-Rad” trademark. They filed a third amended complaint against us on May 30, 2003. The allegedly infringing products according to the third amended complaint are instruments using, and reagents used for, capillary electrophoresis, and products using the BioCAD name.Bio-Rad submitted its final infringement contentions under the local court rules on April 22, 2004, and the parties held a court-ordered mediation conference on July 19, 2004. Bio-Rad is seeking monetary damages, costs, expenses, injunctive relief, and other relief as the court deems proper.

Enzo Biochem, Inc., Enzo Life Sciences, Inc., and Yale University filed a patent infringement action against us in the U.S. District Court for the District of Connecticut on June 8, 2004. The complaint alleges that we are infringing six patents. Four of these patents are assigned to Yale University and licensed exclusively to Enzo Biochem,i.e., U.S. Patent No. 4,476,928, entitled “Modified Nucleotides and Polynucleotides and Complexes Formed Therefrom,” U.S. Patent No. 5,449,767, entitled “Modified Nucleotides and Polynucleotides and Methods of Preparing Same,” U.S. Patent No. 5,328,824 entitled “Methods of Using Labeled Nucleotides,” and U.S. PatentNo. 4,711,955, entitled “Modified Nucleotides and Polynucleotides and Methods of Preparing and Using Same.” The other two patents are assigned to Enzo Life Sciences, i.e., U.S. Patent No. 5,082,830 entitled “End Labeled Nucleotide Probe” and U.S. Patent No. 4,994,373 entitled “Methods and Structures Employing Compoundly –Labeled Polynucleotide Probes.” The allegedly infringing products include the Applied Biosystems group’s sequencing reagent kits, its TaqMan® genotyping and gene expression assays, and the gene expression microarrays used with its Expression Array System. Enzo Biochem, Enzo Life Sciences, and Yale University are seeking monetarydamages, costs, expenses, injunctive relief, and other relief as the court deems proper.

Molecular Diagnostics Laboratories    filed a class action complaint against us and Hoffmann-La Roche, Inc. in    the U.S. District Court for the District of Columbia on September 23,    2004. The complaint alleges anticompetitive conduct in connection with the    sale of Taq DNA polymerase and PCR-related products. The anticompetitive     conduct is alleged to arise from the prosecution and enforcement of U.S.    Patent No. 4,889,818. This patent is assigned to Hoffmann-La Roche, with    whom we have a commercial relationship covering, among 

other things, this    patent and the sale of Taq DNA polymerase. The complaint seeks monetary damages,    costs, expenses,  injunctive relief, and other    relief as the court deems proper. This case is largely based on the same    set of contentions underlying a claim filed against us by Promega Corporation    in the U.S. District Court for the Eastern District of Virginia, which is    described above. The Promega claim was dismissed in August 2004 for, among    other reasons, failure to state a claim upon which relief could be granted.

We filed a patent infringement action against Bio-Rad Laboratories, Inc., MJ Research, Inc., and Stratagene Corporation in the U.S. District Court for the District of Connecticut on November 9, 2004. The complaint alleges that the defendants infringe U.S. Patent No. 6,814,934. The complaint specifically alleges that the defendants’activities involving instruments for real-time PCR detection result in infringement. We are seeking monetary damages, costs, expenses, injunctive relief, and other relief as the court deems proper. Bio-Rad, MJ Research, and Stratagene have each answered the complaint and counterclaimed for declaratory relief that the ‘934 patent isinvalid and not infringed. Bio-Rad, MJ Research, and Stratagene are seeking dismissal of our complaint, a judgment that the ‘934 patent is invalid and not infringed, costs and expenses, and other relief as the court deems proper.

Thermo Finnigan LLC filed a patent infringement action against us in the U.S. District Court for the District of Delaware on December 8, 2004. The complaint alleges that we have infringed U.S. Patent No. 5,385,654 as a result of, for example, our Applied Biosystems group’s commercialization of the ABI PRISM 3700 Genetic Analyzer.Thermo Finnigan is seeking monetary damages, costs, expenses, and other relief as the court deems proper.

The licensor of certain intellectual property to the Company has filed a notice of arbitration alleging, among other things, that the Company underpaid royalties owed under a license agreement. The licensor seeks monetary damages, an injunction against further alleged underpayment of royalties, and other appropriate relief. Thearbitrator is expected to render a decision by the end of October 2005.

Other than for items deemed not material, we have not accrued for any potential losses in the legal proceedings described above because we believe that an adverse determination is not probable, and potential losses cannot be reasonably estimated, in any of these proceedings. However, the outcome of legal actions is inherentlyuncertain, and we cannot be sure that we will prevail in any of the proceedings described above or in our other legal actions. An adverse determination in some of our current legal actions, particularly the proceedings described above, could have a material adverse effect on us and our consolidated financial statements.
**Note** **10—Financial Instruments**
Our foreign currency risk management    strategy uses derivative instruments to hedge various foreign currency forecasted    revenues and intercompany transactions, and to offset the impact of changes    in currency rates on various foreign 

 

Back to Contents
Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   
currency-denominated assets and liabilities.    The principal objective of this strategy is to minimize the  risks and/or    costs associated with our global financing and operating activities. We use forward,	option, and range forward contracts to manage our foreign currency exposures. Our	foreign currency exposures vary, but are primarilyconcentrated in euro, Japanese yen, and British pound. We do not use derivative financialinstruments for trading or speculative purposes or for activities other than risk management,nor are we a party to leveraged derivatives.

We record the fair value of foreign currency derivative contracts in either prepaid expenses and other current assets, other long-term assets, or other accrued expenses in the Consolidated Statements of Financial Position.
**Cash Flow Hedges**
Our international sales are typically denominated in the local currency of the customer, whether third party or intercompany. We use forward, option, and range forward contracts to hedge a portion of forecasted international sales not denominated in U.S. dollars. We use hedge accounting on the derivative contracts to offset thechanges in fair value of various forecasted sales transactions caused by the movements in currency rates. We designate these contracts as cash flow hedges and we record the effective portion of the change in the fair value of these contracts in other comprehensive income (loss) in the Consolidated Statements of Financial Position untilthe underlying forecasted transaction affects earnings. At that time, we reclassify to net revenues in the Consolidated Statements of Operations the gain or loss on the derivative instrument which had been deferred in accumulated other comprehensive income (loss). We recognized net losses of $39.8 million in fiscal 2003,$40.7 million in fiscal 2004, and $18.8 million in fiscal 2005 in net revenues from derivative instruments designated as cash flow hedges of anticipated sales. At June 30, 2005, we recorded $6.5 million of net derivative gains in accumulated other comprehensive income (loss). This amount, which is net of tax, is expected to bereclassified to revenues within the next twelve months.

Because the critical terms of the derivative contracts designated as cash flow hedges and the underlying forecasted sales transactions are the same, we expect that the changes in the fair value of the underlying exposure will be offset completely by the changes in the fair value of the derivative contracts, both at inception and on anongoing basis. Our ongoing assessment of hedge effectiveness includes verifying and documenting that the critical terms of the hedge and forecasted transaction have not changed. No amounts related to hedge ineffectiveness were recorded for the fiscal years ended June 30, 2003, 2004, and 2005.
**Other Foreign Currency Derivatives**
We also use derivative financial instruments to hedge the impact resulting from changes in currency rates on various foreign currency-denominated net asset positions. The gains and losses on these derivatives are expected to largely offset transaction losses and gains, respectively, on the underlying foreign currency-denominated assetsand liabilities, both of 

which are recorded in    other income (expense), net in the Consolidated Statements of Operations.
**Concentration of Credit Risk**
The forward and option contracts used in managing our foreign currency exposures have an element of risk in that the counterparties may be unable to meet the terms of the agreements. We attempt to minimize this risk by limiting the counterparties to a diverse group of highly-rated major domestic and international financialinstitutions. In the event of non-performance by these counterparties, the carrying values of our financial instruments (see table below) represent the maximum amount of loss we would have incurred as of our fiscal year-end. However, we do not expect to record any losses as a result of counterparty default. We do not require and arenot required to pledge collateral for these financial instruments. Other financial instruments that potentially subject us to concentrations of credit risk are cash and cash equivalents, short-term investments, and accounts receivable. We attempt to minimize the risks related to cash and cash equivalents and short-term investments by usinghighly-rated financial institutions that invest in a broad and diverse range of financial instruments. We have established guidelines relative to credit ratings and maturities intended to maintain safety and liquidity.

Concentration of credit risk with respect to accounts receivable is limited due to our large and diverse customer base, which is dispersed over different geographic areas. Allowances are maintained for potential credit losses and such losses have historically been within our expectations.
**Fair Value**
We use various methods to estimate the fair value of financial instruments we hold or own. The carrying amount of cash and cash equivalents approximates fair value. We use quoted market prices, if available, or quoted market prices of financial instruments with similar characteristics in valuing our short-term investments and minorityequity investments. We base the fair value of our debt on the current rates of debt with similar maturities offered to us. The following table presents the carrying amounts and fair values of our significant financial instruments at June 30:
  2004 **2005** (Dollar amounts in millions) CarryingAmount FairValue CarryingAmount FairValue  Cash and cash equivalents $507.9 $507.9 **$****779.4** **$****779.4** Short-term investments  741.6  742.9  **642.7**  **645.1** Currency forwards and options  8.8  5.1  **3.7**  **14.0** Other investments  24.7  24.7  **27.3**  **27.3** Minority equity investments  4.5  16.2  **4.5**  **11.3** Short-term debt  (6.1) (6.1)       
We report net unrealized gains and losses on short-term investments and minority equity investments as a separate component of accumulated other comprehensive income (loss) in the Consolidated Statements of Financial Position.
75
Back to Contents
76Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   **Note** **11—Quarterly Financial Information (Unaudited)**
The following is a summary of quarterly financial results:
  First Quarter Second Quarter Third Quarter Fourth Quarter (Dollar amounts in millions except per share amounts) 2004 **2005(a)** 2004(b) **2005(c)** 2004(d) **2005(e)** 2004(f) **2005(g)**  **Consolidated**                         Net revenues $405.0 **$****407.2** $485.3  **$****477.5** $455.2  **$****469.4** $479.7 ** $****491.0** Gross margin  216.3 ** ****219.9**  256.6  **253.2**  240.6  **258.5**  259.8  **263.8** Income from continuing operations  16.0 ** ****16.1**  42.6  **54.9**  22.1  **34.7**  34.3  **54.1** Net income  16.0 ** ****16.1**  42.6  **54.9**  22.1  **34.7**  44.9  **54.1**  **Applied Biosystems Group**    ** **     ** **              Net revenues $382.7 **$****390.3** $458.4 **$****463.4** $439.6 **$****454.8** $460.4 **$****478.6** Gross margin  198.1 ** ****207.6**  237.9 ** ****243.1**  230.5  **247.1**  245.8  **253.8** Income from continuing operations  33.4 ** ****37.1**  52.4 ** ****72.7**  46.0  **55.5**  40.5  **71.6** Net income  33.4 ** ****37.1**  52.4 ** ****72.7**  46.0  **55.5**  51.1  **71.6** Dividends declared per share $.0425 **$****.0425** $.0425 **$****.0425** $.0425 **$****.0425** $.0425 **$****.0425** Income per share from continuing operations    ** **     ** **              Basic $0.16 **$****0.19** $0.25 **$****0.38** $0.23 **$****0.28** $0.20 **$****0.36** Diluted $0.16 **$****0.18** $0.25 **$****0.37** $0.22 **$****0.28** $0.20 **$****0.35** Net income per share    ** **     ** **              Basic $0.16 **$****0.19** $0.25 **$****0.38** $0.23 **$****0.28** $0.26 **$****0.36** Diluted $0.16 **$****0.18** $0.25 **$****0.37** $0.22 **$****0.28** $0.25 **$****0.35**  **Celera Genomics Group**                         Net revenues $17.3 **$****9.6** $19.2 **$****8.2** $11.2 **$****8.2** $12.4 **$****5.0** Net loss  (16.3)** ****(20.3****)** (13.6) **(19.4****)** (21.9) **(21.0****)** (5.7) **(16.4****)**Net loss per share    ** **                    Basic and diluted $(0.23)**$********(0.28****)**$(0.19)**$****(0.27****)**$(0.30)**$****(0.29****)**$(0.08)**$****(0.22****)** **Celera Diagnostics**    ** **                    Net revenues $ 8.5 **$****9.2** $11.0 **$****7.9** $7.5 **$****9.0** $9.7 ** $****9.4** Net loss  (12.0)** ****(9.3****)** (9.3) **(8.2****)** (11.9) **(7.8****)** (8.8) **(4.6****)** Price range of common stock    ** **                    **Applied Biosystems Group**    ** **                    High $22.55 **$****21.50** $24.00 **$****21.40** $24.44 **$****21.27** $21.96  **$****22.94** Low  18.47 ** ****17.76**  19.95  **18.37**  19.10  **19.42**  18.04  **19.20** **Celera Genomics Group**                         High  12.65  **12.55**  15.49  **14.73**  17.99  **14.10**  15.36  **11.70** Low  8.84  **10.32**  10.08  **11.00**  13.35  **10.12**  10.63  **9.09**  
There were no dividends paid on Applera-Celera Genomics stock during the periods presented.

The following transactions impacted the comparability between fiscal 2004 and 2005 and are discussed in detail in Note 2, with the exception of discontinued operations, which is discussed in Note 13.
(a)The Applied Biosystems group recorded a pre-tax charge of $7.3 million for severance and benefit costs. The Celera Genomics group recorded pre-tax charges of $4.5 million related to the discontinuation of most of the operations of Paracel.(b)The Applied Biosystems group recorded pre-tax gains of $6.4 million related to the sales of minority equity investments. The Applied Biosystems also recorded a pre-tax benefit of $0.6 million for a reduction in anticipated employee-related costs recorded during fiscal 2003.(c)The Applied Biosystems group recorded a net pre-tax gain of $29.7 million for the sale of intellectual property, manufacturing inventory, and research and development assets related to the expansion of the scope of its existing joint venture in life science mass spectrometry with MDS. Additionally, the Applied Biosystems group recorded a pre-tax charge of $2.9 millionfor severance and benefit costs and $2.3 million related to the cost of excess lease space.(d)The Applied Biosystems group recorded pre-tax charges of $6.3 million for severance and benefit costs. The Applied Biosystems group also recorded a pre-tax net gain of $6.7 million from legal settlements and $3.6 million relating primarily to the sales of minority equity investments.(e)The Applied Biosystems group recorded a pre-tax benefit of $0.7 million as a result of the repayment of a loan previously written off in fiscal 2004, and $0.2 million for reductions in anticipated employee-related costs associated with severance and benefit charges recorded in fiscal 2003 through fiscal 2005.(f)The Applied Biosystems group recorded a pre-tax charge of $14.9 million for the impairment of patents and acquired technology and $4.4 million for write-downs of fixed assets and other costs. The Applied Biosystems group also recorded an after-tax benefit of $10.6 million as part of discontinued operations that included a reversal of a portion of a patent liabilitylawsuit accrued in fiscal 2003 and an expected German tax benefit. The Celera Genomics group recorded a pre-tax gain of $24.8 million from the sale of its equity investment in DPI and a pre-tax impairment charge of $18.1 million related to the anticipated sale of its Rockville, Maryland facility.(g)The Applied Biosystems group recorded a net pre-tax charge of $11.4 million for severance and benefit costs, $6.2 million for charges related to facility lease agreements, and $2.6 million for asset impairments. The Celera Genomics group recorded a $3.6 million pre-tax favorable adjustment to a charge recorded in fiscal 2004 associated with the sale of its Rockville,Maryland facility and a pre-tax charge of $3.4 million for severance and asset impairments related to the Online/Information Business. Additionally, the Applied Biosystems group recorded tax benefits of $23.5 million primarily related to additional U.S. R&D tax credit carryforwards, expected results of Canadian examinations and settlement of some U.K. tax matters, andthe Celera Genomics group recorded a tax benefit of $2.2 million related to additional U.S. R&D tax credit carryforwards.  
Back to Contents
Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   **Note** **12—Accumulated Other Comprehensive Income (Loss)**
Accumulated other comprehensive income (loss), net of tax, for fiscal 2003, 2004, and 2005 was as follows:
(Dollar amounts in millions) Unrealized  Gain  (Loss) on  Investments Unrealized  Gain (Loss) on  Hedge  Contracts Foreign  Currency  Translation  Adjustments Minimum  Pension  Liability Accumulated  Other  Comprehensive  Income (Loss)  Balance at June 30, 2002  $11.5  $(24.5) $(24.2) $(54.4) $(91.6)Change          in net unrealized gains on investments,net of tax expense of $2.4  4.6           4.6 Net unrealized losses reclassified into earnings, net of tax benefit of $0.5  0.9           0.9 Change in net unrealized losses on hedge contracts,net of tax benefit of $9.6     (12.6)       (12.6)Net unrealized losses reclassified into  earnings, net of tax benefit of $13.4     26.4        26.4 Foreign currency translation adjustments        45.7     45.7 Minimum pension liability adjustment,net of tax benefit of $15.1           (27.9) (27.9) Balance at June 30, 2003  17.0  (10.7) 21.5  (82.3) (54.5) Change in net unrealized losses on investments, net of tax benefit of $1.1  (2.1)          (2.1)Net unrealized gains reclassified into earnings, net of tax expense of $4.4  (8.1)          (8.1)Change in net unrealized losses on  hedge contracts, net of tax benefit of $9.9     (20.9)                   (20.9)Net unrealized losses reclassified into earnings, net of tax benefit of $13.6     27.1        27.1 Foreign currency translation adjustments        34.0     34.0 Minimum pension liability adjustment,net of tax expense of $4.7           8.8  8.8  Balance at June 30, 2004  6.8  (4.5) 55.5  (73.5) (15.7) Change in net unrealized losses on investments, net of tax benefit of $2.1  **(3.9****)**          **(3.9****)**Change in net unrealized losses on hedge contracts, net of tax benefit of $7.5     **(1.5****)**       **(1.5****)**Net unrealized losses reclassified into earnings, net of tax benefit of $6.3     **12.5**        **12.5** Foreign currency translation adjustments        **(8.6****)**    **(8.6****)**Minimum pension liability adjustment,net of tax benefit of $13.3           **(24.6****)** **(24.6****)** Balance at June 30, 2005  **$  2.9**  **$   6.5**  **$ 46.9**  **$(98.1**) **$(41.8****)**   
The unrealized gains and losses on investments consist of investments in debt securities and minority equity investments in public companies that are classified as available-for-sale. The gains and losses recorded above resulted from temporary declines in the market value of the investments based on the

most recent public information available. Please see Note 1 for the accounting policies related to our investments. The currency translation adjustments are not currently adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries.
77
Back to Contents
78Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   **Note** **13—Discontinued Operations**
In October 2002, we received an adverse jury verdict in Federal District Court for the District of Delaware in connection with a patent lawsuit between TA Instruments, Inc., a subsidiary of Waters Corporation, and The Perkin-Elmer Corporation relating to thermal analysis products. The Applied Biosystems group is involved as thesuccessor to The Perkin-Elmer Corporation, having sold the thermal instruments product line as part of the sale of its Analytical Instruments business to EG&G, Inc. (now named PerkinElmer, Inc.) in 1999. In fiscal 2003, the jury awarded TA Instruments $13.3 million based on lost sales, price erosion, and reasonable royalties, and alsorejected claims we had made against TA Instruments alleging that their conduct infringed one of our patents. Subsequently, the District Court entered final judgment on a modified award of $17.3 million, after ruling on motions filed by us and TA Instruments which resulted in the Court’s striking the price erosion element of the jury’sdamage award, but granting TA Instruments enhanced damages and attorneys’ fees on certain aspects of the verdict, and prejudgment interest. We recorded a charge of $16.4 million, net of income taxes, as part of discontinued operations in fiscal 2003. In June 2003, we appealed the judgment rejecting our infringement claims tothe U.S. Court of Appeals for the Federal Circuit. On May 2004, the U.S. Court of Appeals for the Federal Circuit affirmed the District Court’s judgment denying our infringement claim, and we have elected not to pursue further appeals. As a result, we paid TA Instruments $17.4 million during the fourth quarter of fiscal 2004. Also,during the fourth quarter of fiscal 2004, as a result of the final judgment and subsequent payment to TA Instruments, we recorded an after-tax benefit of $3.0 million related to the reversal of a portion of the patent lawsuit liability accrued in fiscal 2003.

During the fourth quarter of fiscal 2004, we also recorded a $7.6 million German tax benefit from tax refunds and other tax attributes (benefits) resulting from the tax write-off of our investment in one of our former German affiliates. Based on our discussions with the German tax authorities, we concluded that the write-off of ourinvestment was appropriate and that refunds would be due to the Applied Biosystems group. The write-off also created loss carryforwards; however, since it is possible that the tax benefit attributable to the loss carryforwards may not be realized, a full valuation allowance of $6.2 million has been established against the asset.
**Note** **14—Segment, Geographic, Customer and Consolidating Information** **Business Segments**
We are organized based on the products and services that we offer. We operate in the life science industry through three reportable segments: the Applied Biosystems group, the Celera Genomics group, and Celera Diagnostics. We collectively refer to the Applied Biosystems group and the Celera Genomics group as the groups. TheApplied Biosystems group serves the life science industry and research community by developing and marketing instrument-based systems, consumables, software, and services. Customers use these products and services to analyze nucleic acids (DNA and RNA), small

 molecules, and proteins to make    scientific discoveries, develop new pharmaceuticals, and conduct standardized    testing. The Applied Biosystems group’s products also serve the needs    of some markets outside of life science research, which we refer to as “applied    markets,” such as the fields of: forensic testing and human identification;    biosecurity, which refers to products needed in response to the threat  of    biological terrorism and other malicious, accidental, and natural biological    dangers; and food and environmental testing. The Celera Genomics group is    engaged principally in the discovery and development of targeted therapeutics    for cancer, autoimmune, and inflammatory diseases. The Celera Genomics group    is leveraging its  proteomic, bioinformatic, and genomic capabilities to identify and validate    drug targets, and to discover and develop small molecule therapeutics. It    is also seeking to advance therapeutic antibody and selected small molecule    drug programs in collaboration with global technology and market leaders.    Celera Diagnostics is a 50/50 joint  venture between the Applied Biosystems    group and the Celera Genomics group. This venture is focused on the discovery,    development, and commercialization of diagnostic products.

Refer to the consolidating information section of this note for additional information regarding our segments.
**Geographic Areas**
Information concerning principal geographical areas for the fiscal years ended June 30 follows:
(Dollar amounts in millions)  2003  2004  **2005**  **Net Revenues From**          **External Customers**          United States  $   885.9  $   868.5  **$**   **824.7** Europe  487.5  546.8  **607.5** Japan  250.4  237.8  **225.2** Other Asia Pacific countries  102.0  110.8  **120.4** Latin America and other  51.4  61.3  **67.3**  Consolidated  $1,777.2  $1,825.2  **$1,845.1**  
Net revenues are attributable to geographic areas based on the region of destination.

Information concerning long-lived assets at June 30 follows:
(Dollar amounts in millions)  2003  2004  **2005**  **Long-Lived Assets**          United States  $   475.8  $   391.5  **$**   **387.8** Europe  37.0  41.0  **37.1** Japan  14.0  14.0  **14.0** Other Asia Pacific countries  3.0  2.7  **2.5** Latin America and other  0.4  0.4  **0.6**  Consolidated  $   530.2  $   449.6  **$**   **442.0**  
Long-lived assets exclude goodwill and other intangible assets.

 

Back to Contents
Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   **Customer Information**
We have a large and diverse customer base. No single customer accounted for more than 10% of total net revenues during fiscal 2003, 2004, and 2005.
**Consolidating Information**
Presented below is our consolidating financial information, including the allocation of expenses between our segments in accordance with our allocation policies, as well as other related party transactions, such as sales of products between segments and interest income and expense on intercompany borrowings. Our board of directorsapproves the method of allocating earnings to each class of common stock for purposes of calculating earnings per share. This determination is generally based on net income or loss amounts of the corresponding group calculated in accordance with GAAP, consistently applied.

The management and allocation policies applicable to the attribution of assets, liabilities, revenues and expenses to our segments may be modified or rescinded, or additional policies may be adopted, at the sole discretion of our board of directors at any time without stockholder approval. Our board of directors would make any decisionin accordance with its good faith business judgment that its decision is in the best interests of Applera and all of its stockholders as a whole.

We primarily base the attribution of the assets, liabilities, revenues and expenses to each segment on specific identification of the businesses included in each segment. Where specific identification is not practical, we use other methods and criteria that we believe are equitable and provide a reasonable estimate of the assets, liabilities,revenues and expenses attributable to each segment.
**Intersegment Revenues**
We record the sales of products and services between the segments as intersegment revenues, which are eliminated in determining our consolidated net revenues. These sales are generally made on terms that would be available from third parties in commercial transactions. If similar transactions with third parties are not available forpurposes of determining fair value, the purchasing business will pay fair value as determined by our board of directors for such products and services or at the cost (including overhead) of the selling business. The selling business records revenues on these transactions when the product is shipped, as the service is performed, or over theterm of the lease, as applicable.
**Access to Technology and Know-How**
Each segment has free access to all of our technology and know-how (excluding products and services of the other segment) that may be useful in that segment’s business, subject to obligations and limitations applicable to us and to such exceptions that our board of directors may determine. The segments consult with each other on aregular basis concerning technology issues that affect each segment. The 

costs of developing technology    remain in the segment responsible for its development.
**Allocation of Corporate Overhead and       Administrative Shared Services**
Our shared corporate services (such as executive management, human resources, legal, accounting, auditing, tax, treasury, strategic planning and environmental services) and related balance sheet amounts have been allocated to the segments based upon identification of such services specifically benefiting each segment. A portion ofour costs of administrative shared services (such as information technology services) has been allocated in a similar manner. Where determination based on specific usage alone is not practical, we use other methods and criteria that we believe are equitable and provide a reasonable estimate of the cost attributable to each segment. It isnot practical to specifically identify a portion of corporate overhead expenses attributable to each of the segments. As a result, we allocate these corporate overhead expenses primarily based on headcount, total expenses, and revenues attributable to each segment. We believe that the allocation methods developed are reasonable andhave been consistently applied.
**Joint Transactions between Segments**
The segments may from time to time engage in transactions jointly, including with third parties. Research and development and other services performed by one segment for a joint venture or other collaborative arrangement will be charged at fair value, as determined by our board of directors. The segments also may jointly undertake aproject where the total costs and benefits of the project are shared. Shipments of products or performance of services related to such joint projects are not recorded as revenues by any of the businesses, but instead are included, at cost, in the total project costs that are shared based on each business’ expected benefit.

Our businesses may perform services for one another, which are not directly attributable to either businesses’ revenue generating activities. In these cases the business performing the services charges the benefiting business the cost of performing the services, including overhead.
**Allocation of Federal and State Income Taxes**
The federal income taxes of    the Company and its subsidiaries that own assets allocated between the groups    are determined on a consolidated basis using the asset and liability approach    prescribed by SFAS No. 109, “Accounting for Income Taxes.” If    we had used the separate return basis of accounting for taxes, the tax provision    for  the Applied Biosystems group would not have changed, but more likely    than not, a significant valuation allowance would have been recorded by the    Celera Genomics group. We allocate the federal income tax provisions and    related tax payments or refunds between the groups based on a consolidated    return approach taking intoaccount each group’s relative contribution (positive or negative) to ourconsolidated federal taxable income, tax liability and tax credit position. Wetax intersegment transactions as if each segment 
79
 

Back to Contents
80Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   
were a stand-alone company. Wetransfer tax benefits that cannot be used by the group generating those benefits,but can be used on a  consolidated basis, to the group that can use such benefits.We have, and we will continue, to reimburse  existing tax benefits acquired by either group in a business combination that are used by the other group, to the group that acquired such benefits. Tax benefits generated by the Celera Genomics group commencingJuly 1, 1998, which could be used on a consolidated basis, were reimbursed by the Applied Biosystems group to the Celera Genomics group up to a limit of $75 million.

Pursuant to the terms of the Celera Diagnostics joint venture agreement, the Applied Biosystems group reimburses the Celera Genomics group for tax benefits generated by Celera Diagnostics to the extent such tax benefits are used by the Applied Biosystems group. These tax benefits are not subject to the $75 million limit describedabove. The amounts used by the Applied Biosystems group that were not reimbursed to the Celera Genomics group were recorded to allocated net worth of each group in the following Consolidating Statements of Financial Position.

We calculate, depending on the tax laws of the respective jurisdictions, state and local income taxes on either a separate, consolidated, or combined basis. We allocate state and local income tax provisions and related tax payments or refunds between the groups based on the respective contributions of the groups to our state or localtax liabilities.
**Financing Activities**
As a matter of policy, we manage most financing activities of the Applied Biosystems group and the Celera Genomics group on a centralized basis. These activities include the investment of surplus cash, the issuance and repayment of short-term and long-term debt, treasury stock repurchases, and the issuance and repayment of anypreferred stock.

Our board of directors has adopted the following financing policy that affects the financial results of the Applied Biosystems group and the Celera Genomics group.

We allocate our debt between the groups (“pooled debt”) or, if we so determine, in its entirety to a particular group. We will allocate preferred stock, if issued, in a similar manner.

Cash allocated to one group that is used to repay pooled debt or redeem pooled preferred stock decreases such group’s allocated portion of the pooled debt or preferred stock. Cash or other property allocated to one group that is transferred to the other group, if so determined by our board of directors, decreases the transferringgroup’s allocated portion of the pooled debt or preferred stock and, correspondingly, increases the recipient group’s allocated portion of the pooled debt or preferred stock.

Pooled debt bears interest for    the groups at a rate equal to the weighted average interest rate of the debt    calculated on a quarterly basis and applied to the average pooled debt balance    during the period. Preferred stock, if issued and if pooled in a manner similar    to the pooled debt, will bear dividends for the groups at a rate based on     the weighted average dividend rate  

of the preferred stock similarly calculated    and applied. Any expense related to increases in pooled debt or preferred    stock will be reflected in the weighted average interest or dividend rate    of such pooled debt or preferred stock as a whole. During fiscal 2004 and 2005, there    was no pooled debt or preferred stock outstanding.

If we allocate debt for a particular financing in its entirety to one group, that debt will bear interest for that group at a rate determined by our board of directors. If we allocate preferred stock in its entirety to one group, we will charge the dividend cost to that group in a similar manner. If the interest or dividend cost is higher than ouractual cost, the other group will receive a credit for an amount equal to the difference as compensation for the use of our credit capacity. Any expense related to our debt or preferred stock that is allocated in its entirety to a group will be allocated in whole to that group.

Cash or other property that we allocate to one group that is transferred to the other group could, if so determined by our board of directors, be accounted for either as a short-term loan or as a long-term loan. Short-term loans bear interest at a rate equal to the weighted average interest rate of our pooled debt. If we do not have anypooled debt, our board of directors will determine the rate of interest for such loan. Our board of directors establishes the terms on which long-term loans between the groups could be made, including interest rate, amortization schedule, maturity, and redemption terms.

In addition, cash allocated to the Applied Biosystems group may be reallocated to the Celera Genomics group in exchange for Celera Genomics Designated Shares as provided under our Certificate of Incorporation. The number of Celera Genomics Designated Shares issued would be determined by dividing the amount of cash reallocatedby the average market value of Applera-Celera Genomics stock over the 20-trading day period immediately prior to the date of the reallocation. As a result of such a reallocation, a relative percentage of future earnings or losses of the Celera Genomics group would be attributed to the Applied Biosystems group. There were no CeleraGenomics Designated Shares issued during fiscal 2004 or 2005.

Although we may allocate our debt and preferred stock between the groups, the debt and preferred stock remain obligations of the Company and all stockholders of the Company are subject to the risks associated with these obligations.
**Transfers of Assets between Segments**
Transfers of assets can be made between segments without stockholder approval. Such transfers will be made at fair value, as determined by our board of directors. The consideration for such transfers may be paid by one segment to the other in cash or other consideration, as determined by our board of directors.
**Celera Diagnostics**
The Applied Biosystems group    contributed, among other things, its existing molecular diagnostics business    to Celera Diagnostics as part of its initial contribution to the joint venture.    The Celera Genomics group contributed, among other 

 

Back to Contents
Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   
things, access to its genome    databases and agreed to fund all of the cash operating losses of Celera    Diagnostics up to a maximum of $300 million (“initial losses”),    after which, operating losses, if any, would be shared equally by the  groups. Celera Diagnostics has accumulated cash operating losses of approximately $148 million through June 30, 2005. Celera Diagnostics’ profits, if any, will be shared in the ratio of 65% to the Celera Genomicsgroup and 35% to the Applied Biosystems group until such time as the Celera Genomics group is reimbursed for any excess funding of initial losses after consideration of tax reimbursements received from the Applied Biosystems group. Once the excess funding is reimbursed, Celera Diagnostics' profits and cash flows will be shared equally between the groups. Capital expendituresand working capital requirements of the joint venture are funded equally by the groups. The Applied Biosystems group will reimburse the Celera Genomics group for all tax benefits generated by Celera Diagnostics tothe extent such tax benefits are used by the Applied Biosystems group.

The groups account for their investments in Celera Diagnostics under the equity method of accounting, with the Celera Genomics group recording 100% of the initial losses in its statement of operations as loss from joint venture. The Celera Genomics group recorded 100% of the losses of Celera Diagnostics from fiscal 2003 throughfiscal 2005. Additionally, the Celera Genomics group recorded the tax benefit associated with the loss generated by Celera Diagnostics.

In the event of liquidation    of the assets attributable to Celera Diagnostics, including sale of such    assets, the proceeds upon liquidation would be distributed to the groups    based on a proportion similar to their relative investment accounts. If the    proceeds upon liquidation are in excess of the groups’ combined investment    accounts, the  excess liquidation proceeds would be shared in the ratio of    65% to the Celera Genomics group and 35% to the Applied Biosystems group until    the Celera Genomics group has been reimbursed for its excess funding of initial    losses after consideration of tax reimbursements. Any additional liquidation    proceeds would be allocated equally to theCelera Genomics group and the Applied Biosystems group.
**Online Marketing and Distribution Agreement**
In April 2002, the Celera Genomics    group and the Applied Biosystems group entered into a ten-year marketing    and distribution agreement pursuant to which the Applied Biosystems group    became the exclusive distributor of the CDS online platform operated by the    Celera Genomics group and related human genomic and other  biological and    medical information. As a result of this arrangement, the Applied Biosystems    group integrated CDS and other genomic and biological information into its    product offerings. In exchange for the rights it acquired under the marketing    and distribution agreement, the Applied Biosystems group agreed to pay royalties    to theCelera Genomics group based on revenues generated by sales of some products of    the Applied Biosystems group from July 1, 2002, when exclusivity commenced    under the agreement, through the end of fiscal 2012. The royalty rate, as    originally approved by our board of directors, was progressive, up to a maximum    of 5%, with the  level of sales 

through fiscal 2008. The royalty rate became    a fixed percentage of sales starting in fiscal 2009, and the rate declined    each succeeding fiscal year through fiscal 2012. For fiscal 2005, the royalty    rate was 3%. The products subject to the royalties generally include some    reagents, referred to as “probes” and “primers,” and    arrays developed with referenceto the genomic and biological    information accessed by the Applied Biosystems group under the marketing    and distribution agreement. As a result, current products that generate royalties    include the Applied Biosystems group’s TaqMan® assays, SNPlexTM Genotyping System probes, VariantSEQrTM  Resequencing System, arrays used with the Expression Array System, and TaqMan Low Density Arrays.

Based upon review by our board of directors of past performance, current business conditions, and future expectations with respect to the marketing and distribution agreement, as compared to original expectations, the board approved the following amendments to the agreement, effective February 2005. The board took this actionconsistent with its authority under the agreement and its responsibility to monitor the performance of the groups thereunder.
 •The term of the agreement was extended from ten to 15 years, so that the term now runs through the end of our 2017 fiscal year.    •The royalty rate was modified such that (i) for prior fiscal years and our fiscal 2005 year, the rate applied was as described above, but (ii) beginning in our 2006 fiscal year, the royalty rate will be fixed at 4% through the remaining term of the agreement.
In April 2005, the Celera Genomics group announced its intention to substantially discontinue the operations of its Online/Information Business, including CDS, effective June 30, 2005, concurrent with the expiration of substantially all of its outstanding contractual obligations to Online/Information Business customers. Pursuant to themarketing and distribution agreement, the Celera Genomics group has been responsible for the performance of its obligations under all contracts relating to the Online/Information Business existing on June 30, 2002 (including some renewals of these contracts) and was entitled to receive all revenues and other benefits under, and wasresponsible for all costs and expenses associated with, those contracts. The Applied Biosystems group agreed, subject to some conditions specified in the marketing and distribution agreement, to reimburse the Celera Genomics group for any shortfall in earnings before interest, taxes, depreciation, and amortization from these contractsduring the four fiscal years ending with fiscal year 2006 below $62.5 million. As of the end of fiscal 2005, the obligations under this reimbursement provision had been fully satisfied. The Celera Genomics group will continue to receive royalties on sales of some products sold by the Applied Biosystems group under the marketing anddistribution agreement as described above, but otherwise does not expect to receive any further significant revenue from its discontinued products and services business. Under the marketing and distribution agreement, CDS database subscriptions were covered by the royalty provisions, but the Applied Biosystems group discontinuedthis product as of the end of fiscal 2005.
81
 

Back to Contents
82Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   
The following table summarizes the related party transactions between our segments for the fiscal years ended June 30:
(Dollar amounts in millions) 2003 2004 **2005**  **Applied Biosystems Group**          Sales to the Celera Genomics group (a) $4.4 $2.8 **$****3.1** Sales to Celera Diagnostics (a)  5.1  7.2  **2.4** Nonreimbursable utilization of tax benefits (b)  28.1  12.3  **51.1** Payments for reimbursable utilization of tax benefits (c)  20.5  16.4  **11.6** Funding of Celera Diagnostics (d)  7.1  4.6  **4.8**  **Celera Genomics Group**          Royalties from the Applied Biosystems group (e) $1.9 $2.7 **$****3.0** Funding of Celera Diagnostics (f)  52.3  38.7  **27.3**  **Celera Diagnostics**          Sales to the Applied Biosystems group (g) $3.3 $— **$****—**  (a)The Applied Biosystems group recorded net revenues from leased instruments and sales of consumables and project materials to the Celera Genomics group and Celera Diagnostics.(b)The Applied Biosystems group received, without reimbursement, some of the tax benefits generated by the Celera Genomics group in accordance with the tax allocation policy described above.(c)The Applied Biosystems group paid the Celera Genomics group for the use of existing tax benefits acquired by the Celera Genomics group in business combinations and other tax benefits, including those associated with Celera Diagnostics, in accordance with the tax allocation policy described above.(d)The Applied Biosystems group recorded its share of capital expenditures and working capital funding for Celera Diagnostics.(e)The Celera Genomics group recorded net revenues primarily for royalties generated from sales by the Applied Biosystems group of products integrating CDS and some other genomic and biological information under a marketing and distribution agreement.(f)The Celera Genomics group recorded the funding of cash operating losses and its share of capital expenditures and working capital funding for Celera Diagnostics.(g)Celera Diagnostics recorded net revenues from the sale of diagnostics products to the Applied Biosystems group under a distribution agreement. On October 1, 2002, sales responsibilities for products manufactured by Celera Diagnostics were largely transferred to the diagnostic division of Abbott Laboratories, pursuant to a profit-sharing alliance announced in June2002.
For the three years ended June 30, 2005, the Celera Genomics group recorded 100% of the losses of Celera Diagnostics in its net loss as well as the tax benefit associated with those losses. In the following tables, the “Eliminations” column represents the elimination of intersegment activity and the losses on Celera Diagnostics, whichare included both in the “Celera Diagnostics” column and net within the “Celera Genomics group” column as “Loss from joint venture.”

Back to Contents
Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   **Consolidating Statement of Operations for the Year Ended June** **30, 2005**            (Dollar amounts in thousands) Applied  Biosystems  Group Celera  Genomics  Group Celera  Diagnostics Eliminations Consolidated  Products $1,480,771 $2,178 $7,412 $— $1,490,361 Services  199,036  2,385  4,093     205,514 Other  101,750  23,541  23,974     149,265  Total net revenues from external customers  1,781,557  28,104  35,479  —  1,845,140 Intersegment revenues  5,526  2,944     (8,470)    **Total Net Revenues**  1,787,083  31,048  35,479  (8,470) 1,845,140  Products  727,674  2,406  8,482  (3,435) 735,127 Services  94,285  2,140     (514) 95,911 Other  13,544  1,449  5,441  (1,687) 18,747  **Total Cost of Sales**  835,503  5,995  13,923  (5,636) 849,785  **Gross Margin**  951,580  25,053  21,556  (2,834) 995,355  Selling, general and administrative  443,626  20,120  10,882  50,829  525,457 Corporate allocated expenses  42,042  6,097  2,690  (50,829)   Research, development and engineering  192,197  103,532  37,867  (2,862) 330,734 Amortization of intangible assets     2,900        2,900 Employee-related charges, asset impairments 	and other  31,762  2,614        34,376 Asset dispositions and litigation settlements  (38,172)          (38,172) **Operating Income (Loss)**  280,125  (110,210) (29,883) 28  140,060 Loss on investments, net  (50)          (50)Interest income, net  13,919  14,941        28,860 Other income (expense), net  3,202  1,271        4,473 Loss from joint venture     (29,883)    29,883     **Income (Loss) before Income Taxes**  297,196  (123,881) (29,883) 29,911  173,343 Provision (benefit) for income taxes  60,302  (46,764)    10  13,548  **Net Income (Loss)** $236,894 $(77,117)$(29,883)$29,901 $159,795  83
Back to Contents
84Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   **Consolidating Statement of Financial Position at June** **30, 2005** (Dollar amounts in thousands) Applied  Biosystems  Group Celera  Genomics  Group Celera  Diagnostics Eliminations Consolidated  **Assets**                Current assets                Cash and cash equivalents $756,236 $23,165 $— $— $779,401 Short-term investments     645,084        645,084 Accounts receivable, net  378,159  1,409  5,352  (982) 383,938 Inventories, net  117,168  335  9,038     126,541 Prepaid expenses and other current assets  139,246  7,150  11,630  (5,381) 152,645  Total current assets  1,390,809  677,143  26,020  (6,363) 2,087,609 Property, plant and equipment, net  400,422  32,131  6,436  (591) 438,398 Other long-term assets  498,832  159,957  4,679  (25,290) 638,178  **Total Assets** $2,290,063 $869,231 $37,135 $(32,244)$3,164,185  **Liabilities and Stockholders’ Equity**                Current liabilities                Accounts payable $167,060 $7,689 $5,302 $(6,029)$174,022 Accrued salaries and wages  74,598  11,925  4,665     91,188 Accrued taxes on income  66,792  10,535        77,327 Other accrued expenses  238,242  11,098  1,528  (734) 250,134  Total current liabilities  546,692  41,247  11,495  (6,763) 592,671 Other long-term liabilities  220,461  6,891  79     227,431  **Total Liabilities**  767,153  48,138  11,574  (6,763) 820,102  **Total Stockholders’ Equity**  1,522,910  821,093  25,561  (25,481) 2,344,083  **Total Liabilities and Stockholders’ Equity** $2,290,063 $869,231 $37,135 $(32,244)$3,164,185  
Back to Contents
Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   **Consolidating Statement of Cash Flows for the Year Ended June** **30, 2005** (Dollar amounts in thousands) Applied  Biosystems  Group Celera  Genomics  Group Celera  Diagnostics Eliminations Consolidated  **Operating Activities of Continuing Operations**                Income (loss) from continuing operations $236,894 $(77,117)$(29,883)$29,901 $159,795 Adjustments to reconcile income (loss) from continuing operations to net cash provided (used) by operating activities:                Depreciation and amortization  82,944  11,831  7,416  (236) 101,955 Asset impairments  4,853  (206)       4,647 Provisions for office closures and severance costs  20,975  4,707        25,682 Share-based compensation programs  3,966  2,065        6,031 Deferred income taxes  (53,141) 19,084     (814) (34,871)(Gains) losses from investments and sales of assets  (29,672) 33  (7)    (29,646)Loss from joint venture and equity method investees     29,883     (29,883)   Nonreimbursable utilization of intergroup tax benefits  51,110  (51,110)         Changes in operating assets and liabilities:                Accounts receivable  6,057  2,673  1,352  (611) 9,471 Inventories  13,398  22  492     13,912 Prepaid expenses and other assets  (9,357) 1,556  (7,040) 706  (14,135)Accounts payable and other liabilities  6,243  (30,981) (2,009) 329  (26,418) **Net Cash Provided (Used) by Operating Activities****of Continuing Operations**  334,270  (87,560) (29,679) (608) 216,423  **Investing Activities of Continuing Operations**                Additions to property, plant and equipment  (84,591) (7,429) (2,469) 608  (93,881)Proceeds from maturities of available-for-sale investments     2,022,558        2,022,558 Proceeds from sales of available-for-sale investments  158,150  511,912        670,062 Purchases of available-for-sale investments  (109,525) (2,486,394)       (2,595,919)Investments in joint venture and other  (5,196) (27,299)    32,124  (371)Proceeds from the sale of assets, net  7,329  42,398  24     49,751  **Net Cash Provided (Used) by Investing Activities****of Continuing Operations**  (33,833) 55,746  (2,445) 32,732  52,200  **Net Cash Provided by Operating Activities****of Discontinued Operations**  338           338  **Financing Activities**                Principal payments on debt     (6,000)       (6,000)Dividends  (33,446)          (33,446)Net cash funding from groups        32,124  (32,124)   Purchases of common stock for treasury  (6,100)          (6,100)Proceeds from stock issued for stock plans  47,551  9,431        56,982  **Net Cash Provided by Financing Activities**  8,005  3,431  32,124  (32,124) 11,436  **Effect of Exchange Rate Changes on Cash**  (8,866)          (8,866) **Net Change in Cash and Cash Equivalents**  299,914  (28,383)       271,531 **Cash and Cash Equivalents Beginning of Year**  456,322  51,548        507,870  **Cash and Cash Equivalents End of Year** $756,236 $23,165 $— $— $779,401    85
Back to Contents
86Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   **Consolidating Statement of Operations for the Year Ended June** **30, 2004** (Dollar amounts in thousands) Applied  Biosystems  Group Celera  Genomics  Group Celera  Diagnostics Eliminations Consolidated  Products $1,441,759 $5,011 $9,189 $— $1,455,959 Services  178,239  4,201        182,440 Other  111,105  48,204  27,485     186,794  Total net revenues from external customers  1,731,103  57,416  36,674  —  1,825,193 Intersegment revenues  9,995  2,710  28  (12,733)    **Total Net Revenues**  1,741,098  60,126  36,702  (12,733) 1,825,193  Products  721,201  3,228  7,079  (3,873) 727,635 Services  91,820  800     (704) 91,916 Other  15,753  6,804  13,041  (3,233) 32,365  **Total Cost of Sales**  828,774  10,832  20,120  (7,810) 851,916  **Gross Margin**  912,324  49,294  16,582  (4,923) 973,277  Selling, general and administrative  418,902  25,302  11,630  56,541  512,375 Corporate allocated expenses  46,339  7,100  3,102  (56,541)   Research, development and engineering  214,153  101,388  43,818  (5,194) 354,165 Amortization of intangible assets     2,900        2,900 Employee-related charges, asset impairments 	and other  23,741  18,083        41,824 Asset dispositions and litigation settlements  (6,660)          (6,660) **Operating Income (Loss)**  215,849  (105,479) (41,968) 271  68,673 Gain on investments, net  11,235  24,294        35,529 Interest income, net  12,068  10,769        22,837 Other income (expense), net  592  1,856        2,448 Loss from joint venture     (41,968)    41,968     **Income (Loss) before Income Taxes**  239,744  (110,528) (41,968) 42,239  129,487 Provision (benefit) for income taxes  67,491  (53,052)    95  14,534  **Income (Loss) from Continuing Operations**  172,253  (57,476) (41,968) 42,144  114,953 Income from discontinued operations, net of income taxes  10,628           10,628  **Net Income (Loss)** $182,881 $(57,476)$(41,968)$42,144 $125,581    
 

Back to Contents
Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   **Consolidating Statement of Financial Position at June** **30, 2004** (Dollar amounts in thousands) Applied  Biosystems  Group Celera  Genomics  Group Celera  Diagnostics Eliminations Consolidated  **Assets**                Current assets                Cash and cash equivalents $456,322 $51,548 $— $— $507,870 Short-term investments  48,625  694,246        742,871 Accounts receivable, net  382,977  4,082  6,704  (1,593) 392,170 Inventories, net  129,342  1,924  9,530     140,796 Prepaid expenses and other current assets  92,440  47,346  4,590  (4,675) 139,701  Total current assets  1,109,706  799,146  20,824  (6,268) 1,923,408 Property, plant and equipment, net  402,908  34,093  9,245  (219) 446,027 Other long-term assets  435,146  184,475  6,834  (23,039) 603,416  **Total Assets** $1,947,760 $1,017,714 $36,903 $(29,526)$2,972,851  **Liabilities and Stockholders’ Equity**                Current liabilities                Current portion of long-term debt $— $6,081 $— $— $6,081 Accounts payable  139,866  9,223  4,767  (5,861) 147,995 Accrued salaries and wages  72,513  12,733  4,458     89,704 Accrued taxes on income  66,967  13,632        80,599 Other accrued expenses  238,340  30,715  3,741  (407) 272,389  Total current liabilities  517,686  72,384  12,966  (6,268) 596,768 Other long-term liabilities  186,516  7,901  617     195,034  **Total Liabilities**  704,202  80,285  13,583  (6,268) 791,802  **Total Stockholders’ Equity**  1,243,558  937,429  23,320  (23,258) 2,181,049  **Total Liabilities and Stockholders’ Equity** $1,947,760 $1,017,714 $36,903 $(29,526)$2,972,851    87
Back to Contents
88Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   **Consolidating Statement of Cash Flows for the Year Ended June** **30, 2004** (Dollar amounts in thousands) Applied  Biosystems  Group Celera  Genomics  Group Celera  Diagnostics Eliminations Consolidated  **Operating Activities of Continuing Operations**                Income (loss) from continuing operations  $172,253  $(57,476) $(41,968) $42,144  $   114,953 Adjustments to reconcile income (loss) from continuing operations to net cash provided (used) by operating activities:                Depreciation and amortization  96,776  20,834  7,789  (132) 125,267 Asset impairments  19,205  18,083        37,288 Provisions for office closures and severance costs  5,456           5,456 Share-based compensation programs  2,410  899        3,309 Deferred income taxes  (21,395) (27,270)    (571) (49,236)Gains from investments and sales of assets  (11,411) (24,052)       (35,463)Loss from joint venture and equity method investees     42,456     (41,968) 488 Nonreimbursable utilization of intergroup tax benefits  12,334  (12,334)         Changes in operating assets and liabilities:                Accounts receivable  39,910  12,626  (1,601) (1,597) 49,338 Inventories  11,966  650  (690) (139) 11,787 Prepaid expenses and other assets  (12,329) 493  (4,179) 2,792  (13,223)Accounts payable and other liabilities  (25,917) (28,768) (315) (529) (55,529) **Net Cash Provided (Used) by Operating Activities****of Continuing Operations**  289,258  (53,859) (40,964) —  194,435  **Investing Activities of Continuing Operations**                Additions to property, plant and equipment  (60,410) (5,977) (2,320) 316  (68,391)Proceeds from maturities of available-for-sale investments     2,230,846        2,230,846 Proceeds from sales of available-for-sale investments  345,464  674,852        1,020,316 Purchases of available-for-sale investments  (360,325) (2,836,234)       (3,196,559)Investments in joint venture and other  (4,840) (38,732)    43,284  (288)Proceeds from the sale of assets, net  3,241  32,296     (316) 35,221  **Net Cash Provided (Used) by Investing Activities****of Continuing Operations**  (76,870) 57,051  (2,320) 43,284  21,145  **Net Cash Used by Operating Activities****of Discontinued Operations**  (17,738)          (17,738) **Financing Activities**                Principal payments on debt     (10,000)       (10,000)Dividends  (43,528)          (43,528)Net cash funding from groups        43,284  (43,284)   Purchases of common stock for treasury  (324,999)          (324,999)Proceeds from stock issued for stock plans  23,062  5,739        28,801  **Net Cash Provided (Used) by Financing Activities**  (345,465) (4,261) 43,284  (43,284) (349,726) **Effect of Exchange Rate Changes on Cash**  12,871           12,871  **Net Change in Cash and Cash Equivalents**  (137,944) (1,069)       (139,013)**Cash and Cash Equivalents Beginning of Year**  594,266  52,617        646,883  **Cash and Cash Equivalents End of Year**  $456,322  $ 51,548 $— $—  $   507,870    
Back to Contents
Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   **Consolidating Statement of Operations for the Year Ended June 30, 2003** (Dollar amounts in thousands) Applied  Biosystems  Group Celera  Genomics  Group Celera  Diagnostics Eliminations Consolidated  Products $1,392,841 $5,563 $6,659 $— $1,405,063 Services  159,260  7,386        166,646 Other  121,281  73,405  10,837     205,523  Total net revenues from external customers  1,673,382  86,354  17,496     1,777,232 Intersegment revenues  9,561  1,910  3,267  (14,738)    **Total Net Revenues**  1,682,943  88,264  20,763  (14,738) 1,777,232  Products  722,351  1,767  3,192  (6,922) 720,388 Services  91,104  3,064     (626) 93,542 Other  20,067  9,245  8,108  (1,694) 35,726  **Total Cost of Sales**  833,522  14,076  11,300  (9,242) 849,656  **Gross Margin**  849,421  74,188  9,463  (5,496) 927,576  Selling, general and administrative  369,276  26,614  9,229  50,113  455,232 Corporate allocated expenses  41,016  6,634  2,463  (50,113)   Research, development and engineering  221,204  117,828  49,008  (6,715) 381,325 Amortization of intangible assets     5,873        5,873 Employee-related charges, asset impairments and other  20,041           20,041 Asset dispositions and litigation settlements  (25,776)          (25,776) **Operating Income (Loss)**  223,660  (82,761) (51,237) 1,219  90,881 Loss on investments, net  (2,281) (334)       (2,615)Interest income, net  12,684  16,933        29,617 Other income (expense), net  4,604  (16,910)       (12,306)Loss from joint venture     (51,237)    51,237     **Income (Loss) before Income Taxes**  238,667  (134,309) (51,237) 52,456  105,577 Provision (benefit) for income taxes  39,050  (52,380)    427  (12,903) **Income (Loss) from Continuing Operations**  199,617  (81,929) (51,237) 52,029  118,480 Loss from discontinued operations, net of income taxes  (16,400)          (16,400) **Net Income (Loss)** $183,217 $(81,929)$(51,237)$52,029 $102,080    89
Back to Contents
90Notes            to Consolidated Financial Statements — (Continued)  Applera          Corporation   **Consolidating Statement of Cash Flows for the Year Ended June** **30, 2003** (Dollar amounts in thousands) Applied  Biosystems  Group Celera  Genomics  Group Celera  Diagnostics Eliminations Consolidated  **Operating Activities of Continuing Operations**                Income (loss) from continuing operations $199,617 $(81,929) $(51,237) $52,029  $   118,480 Adjustments to reconcile income (loss) from continuing operations to net cash provided (used) by operating activities:                Depreciation and amortization  106,392  35,504  5,970  (1,211) 146,655 Asset impairments  9,991           9,991 Provisions for office closures and severance costs  19,498           19,498 Share-based compensation programs  3,943  1,171        5,114 Deferred income taxes  (49,617) (8,241)    (156) (58,014)Losses from investments and sales of assets  1,191  309        1,500 Loss from joint venture and equity method investees     70,131     (51,237) 18,894 Nonreimbursable utilization of intergroup tax benefits  28,129  (28,129)         Changes in operating assets and liabilities:                Accounts receivable  (8,299) 13,242  (4,926) 2,932  2,949 Inventories  452  (666) (6,625) (8) (6,847)Prepaid expenses and other assets  (22,896) (1,058) (752) 1,825  (22,881)Accounts payable and other liabilities  (8,960) (32,250) 5,903  (4,174) (39,481) **Net Cash Provided (Used) by Operating Activities****of Continuing Operations**  279,441  (31,916) (51,667) —  195,858  **Investing Activities of Continuing Operations**                Additions to property, plant and equipment  (131,940) (5,991) (7,743) 1,279  (144,395)Proceeds from maturities of available-for-sale investments  29,646  3,861,558        3,891,204 Proceeds from sales of available-for-sale investments  146,675  520,349        667,024 Purchases of available-for-sale investments  (154,075) (4,271,258)       (4,425,333)Purchases of long-term investments     (16,834)       (16,834)Investments in joint venture and other  (7,396) (52,339)    59,411  (324)Proceeds from the sale of assets, net  5,463  2,425     (1,280) 6,608  **Net Cash Provided (Used) by Investing Activities****of Continuing Operations**  (111,627) 37,910  (7,743) 59,410  (22,050) **Net Cash Used by Operating Activities****of Discontinued Operations**  (3,677)          (3,677) **Financing Activities**                Net change in loans payable  (290)          (290)Dividends  (35,567)          (35,567)Net cash funding from groups        59,410  (59,410)   Purchases of common stock for treasury  (19,779)          (19,779)Proceeds from stock issued for stock plans  15,314  17,733        33,047  **Net Cash Provided (Used) by Financing Activities**  (40,322) 17,733  59,410  (59,410) (22,589) **Effect of Exchange Rate Changes on Cash**  29,123           29,123  **Net Change in Cash and Cash Equivalents**  152,938  23,727        176,665 **Cash and Cash Equivalents Beginning of Year**  441,328  28,890        470,218  **Cash and Cash Equivalents End of Year** $594,266 $52,617 $— $—  $   646,883    
Back to Contents
Reports of Management  Applera      Corporation   **To the Stockholders of Applera Corporation** **Management Responsibility for Financial Statements**
We are responsible for the accompanying consolidated financial statements. We prepared the financial statements in conformity with accounting principles generally accepted in the United States of America, which requires us to make informed judgments and estimates that we believe are appropriate under the circumstances. Financialinformation presented elsewhere in this annual report is consistent with that in the financial statements.

In meeting our responsibility for preparing reliable financial statements, we maintain a system of internal controls designed to provide reasonable assurance that assets are safeguarded and transactions are properly recorded and executed in accordance with corporate policy and management authorization. We believe our internal controlsprovide reasonable assurance that errors or irregularities which could be material to the financial statements are prevented or would be detected within a timely period. In designing such controls, we recognize judgments are required to assess and balance the costs and expected benefits of a system of internal controls. Adherence tothese controls is reviewed through a coordinated audit effort of our internal audit staff and independent registered public accounting firm.

The Audit/Finance Committee of our board of directors is comprised solely of outside directors and is responsible for overseeing and monitoring the quality of our accounting and auditing practices. The independent registered public accounting firm and internal auditors have full and free access to the Audit/Finance Committee and meetperiodically with the committee to discuss accounting, auditing, and financial reporting matters.
**Management Report on Internal Control over Financial Reporting**
We are responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance withaccounting principles generally accepted in the Unites States of America.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies orprocedures may deteriorate.

We conducted an evaluation of the effectiveness of internal control over financial reporting based on the framework in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, we conclude that, as of June 30, 2005, our internal control overfinancial reporting was effective.

Our assessment of the effectiveness of our internal control over financial reporting as of June 30, 2005 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which is included herein.

Dennis L. WingerSenior Vice President and Chief Financial Officer 

Tony L. WhiteChairman, President, and Chief Executive Officer
91
 

Back to Contents
92Report of Independent Registered Public Accounting Firm  Applera      Corporation   **To the Board of Directors and Stockholders of Applera Corporation**
We have completed an integrated audit of Applera Corporation’s 2005 consolidated financial statements and of its internal control over financial reporting as of June 30, 2005 and audits of its 2004 and 2003 consolidated financial statements in accordance with the standards of the Public Company Accounting Oversight Board (UnitedStates). Our opinions, based on our audits, are presented below.
**Consolidated Financial Statements**
In our opinion, the accompanying consolidated statements of financial position and the related consolidated statements of operations, stockholders’ equity and cash flows present fairly, in all material respects, the financial position of Applera Corporation and its subsidiaries at June 30, 2005 and 2004, and the results of their operationsand their cash flows for each of the three years in the period ended June 30, 2005 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements basedon our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Anaudit of financial statements includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide areasonable basis for our opinion.
**Internal Control            over Financial Reporting**
Also, in our opinion, management’s assessment, included in the accompanying Management Report on Internal Control Over Financial Reporting, that the Company maintained effective internal control over financial reporting as of June 30, 2005 based on criteria established in *Internal Control - Integrated Framework* issued by theCommittee of Sponsoring Organizations of the Treadway Commission (COSO), is fairly stated, in all material respects, based on those criteria. Furthermore, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of June 30, 2005, based on criteria established in *InternalControl - Integrated Framework* issued by the COSO. The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting. Our responsibility is to express opinions on management’s assessment and on theeffectiveness of the Company’s internal control over financial reporting based on our audit. We conducted our audit of internal control over financial reporting in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtainreasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. An audit of internal control over financial reporting includes obtaining an understanding of internal control over financial reporting, evaluating management’s assessment, testing and evaluating the design andoperating effectiveness of internal control, and performing such other procedures as we consider necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reportingincludes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordancewith accounting principles generally accepted in the United States of America, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies orprocedures may deteriorate.

 

PricewaterhouseCoopers LLPStamford, Connecticut

August 31, 2005

Back to Contents
Directors                  and Officers  Applera            Corporation   
**Board                of Directors**

 Tony                  L. White         Chairman, President, and         Chief Executive Officer         Director since 1995(1)

 Richard H.                Ayers         Retired Chairman and         Chief Executive Officer         The Stanley Works         Director since 1988(1,2)

Jean-Luc Bélingard         President and Chief Executive         Officer         Ipsen Group         Director since 1993(3,4,5)

 Robert H.                Hayes, Ph.D.         Phillip Caldwell Professor,         Emeritus         Harvard Business School         Director since 1985 (1,2,5)

 Arnold J.                Levine, Ph.D.         Professor, Institute for         Advanced Study         Director since 1999(3,4,5)

 William H.                Longfield         Retired Chairman and         Chief Executive Officer         C.R. Bard, Inc.         Director since 2003(3,4)

 Theodore E.                Martin         Retired President and         Chief Executive Officer         Barnes Group Inc.         Director since 1999(2)

  
 
 

Carolyn W.                Slayman, Ph.D.        Sterling Professor and        Deputy Dean        Yale University School        of Medicine        Director since 1994 (1,3,4,5)

 Orin R. Smith         Retired Chairman and         Chief Executive Officer         Engelhard Corporation         Director since 1995 (3,4)

 James R. Tobin         President and Chief         Executive Officer         Boston Scientific         Corporation         Director since 1999 (2)

Committee Memberships:         1 Executive Committee         2 Audit/Finance Committee3 Management Resources    Committee         4 Nominating/Corporate    Governance Committee         5 Technology Advisory   Committee
 
**Corporate                Officers**

 Tony L. White*         Chairman, President, and         Chief Executive Officer 

Robert F. G.                Booth, Ph.D.         Vice President         Celera Genomics 

 Samuel E.                Broder, M.D.         Vice President         Celera Genomics 

 Catherine                M. Burzik*         Senior Vice President and         President         Applied Biosystems 

 Ugo D. DeBlasi         Vice President and Controller 

 Dennis A.                Gilbert         Vice President         Applied Biosystems 

 Paul D. Grossman,                Ph.D.         Vice President         Applied Biosystems 

 Barbara J.                Kerr*         Vice President         Human Resources 

 Laura C. Lauman         Vice President         Applied Biosystems 

 Victor K.                Lee, Ph.D.         Intellectual Property         Celera Diagnostics 

 Thomas P.                Livingston         Vice President and         Secretary 
                
 

Wayne W. Montgomery             Intellectual Property             Celera Genomics 

William V. Murray        Vice President         Applied Biosystems 

Sandeep Nayyar         Finance Applied         Biosystems 

Tama Olver        Vice President and Chief        Information Officer 

Kathy Ordoñez*        Senior Vice President and         President        Celera Genomics and Celera         Diagnostics 

John S. Ostaszewski        Vice President and Treasurer 

William B. Sawch*         Senior Vice President and         General Counsel 

Michael G. Schneider         Vice President         Applied Biosystems 

Mark P. Stevenson         Vice President        Applied Biosystems 

Thomas J. White, Ph.D.         Vice President         Celera Diagnostics 

Dennis L. Winger*         Senior Vice President and         Chief Financial Officer 

*  Member,                Management     Executive Committee
       93
Back to Contents
94Directors                and Officers  Applera            Corporation   
**Principal                Offices**

Applera Corporation        301 Merritt 7         Norwalk, CT 06851-1070        Tel 203.840.2000         Toll Free 800.761.5381        www.applera.com        Mailing address:         Applera Corporation        301 Merritt 7         P.O. Box 5435         Norwalk, CT 06856-5435        Applied Biosystems        850 Lincoln Centre Drive        Foster        City, CA 94404        Tel 650.570.6667        Toll Free 800.874.9868 www.appliedbiosystems.com        Celera        Genomics        45 West Gude Drive        Rockville, MD 20850        Tel 240.453.3000        Toll        Free 877.235.3721        www.celera.com         Celera Diagnostics        1401 Harbor Bay Parkway        Alameda, CA 94502        Tel 510.749.4200        Toll Free 866.235.3723        www.celeradiagnostics.com

**Stockholder Response                    Center******

Computershare (formerly                  Equiserve), our stockholder services and transfer agent, will                  answer questions about accounts, certificates, and dividends.                  Please call toll-free 800.730.4001 or write to:            Equiserve Trust                  Company, N.A.            c/o Computershare Investor Services            P.O. Box                  43010            Providence, RI 02940-3010            www.computershare.com/equiserve

**Dividend Reinvestment******

The Applied Biosystems                  Dividend Reinvestment Plan provides owners of Applera-Applied                  Biosystems stock with a convenient, automatic, and inexpensive                  way to purchase additional shares. For information and an enrollment                  form, contact Computershare at the address above.

  
 
**Stockholder                    Publications******

Applera Corporation information,                  including quarterly earnings releases, is available by calling                  800.762.6923. This menu-driven system allows callers to receive                  specific news releases by fax within minutes of a request.                  Corporate publications, including the annual report, proxy                  statement, and Securities and Exchange Commission filings (Forms                  10-K, 10-Q, etc.), may also be requested and will be sent by                  mail.

**Stock                      Exchange Listings******

Applera-Applied Biosystems                  stock and Applera-Celera Genomics stock are listed on the New                  York and Pacific exchanges under the symbols ABI and CRA, respectively.

**Form                      10-K******

A copy of our Annual Report                  on Form 10-K for our 2005 fiscal year may be obtained without                  charge by writing to our Corporate Secretary at the 301 Merritt                  7 corporate address.

**Information                      Via Internet******

Internet users can access                  information about us, including press releases, quarterly conference                  calls, information about our products and services, and other                  items of interest, at the following addresses:            www.applera.com                  www.appliedbiosystems.com www.celera.com www.celeradiagnostics.com            Alternatively, you may request this information by writing                  to:            Applera Corporation            Corporate Communications            850 Lincoln                  Centre Drive            Foster City, CA 94404
 
**Annual                    Meeting******

Our 2005 Annual Meeting                  of Stockholders will be held on Thursday, October 20, 2005,                  at 9:30 a.m. at 301 Merritt 7, Norwalk, CT 06851.

**Certifications**

The certifications of                  our Chief Executive Officer and Chief Financial Officer required                  by Section 302 of the Sarbanes-Oxley Act of 2002 regarding,                  among other things, the quality of our public disclosure, have                  been signed by those officers and filed by us with the Securities                  and Exchange Commission as exhibits 31.1 and 31.2 to our Annual                  Report on Form 10-K for our 2005 fiscal year.

On October 28, 2004, our                  Chief Executive Officer submitted to the New York Stock Exchange                  an annual certification stating that as of the date thereof                  he was not aware of any violation by us of the New York Stock                  Exchange corporate governance listing standards.

**Investor                    Relations & Corporate Communications******

Peter Dworkin, Vice President

Investment professionals                  should call 650.554.2449. 

News media                    representatives and others seeking general information should                    call 650.638.6227.
                
**Equal                    Employment Opportunity and Affirmative Action******

Applera Corporation has                  long been committed to Equal Employment Opportunity and Affirmative                  Action. A policy of positive action is the foundation of this                  commitment and is typified at Applera Corporation by programs                  directed toward responsible community involvement.

Applied Biosystems and                  MicroSeq are registered trademarks and AB (Design), API 4000,                  Applera, Celera, Celera Diagnostics, Celera Genomics, and ViroSeq                  are trademarks of Applera Corporation or its subsidiaries in                  the US and/or certain other countries.

Q TRAP is a registered                  trademark of Applied Biosystems/MDS SCIEX, a joint venture                  between Applera Corporation and MDS Inc. TaqMan is a registered                  trademark of Roche Molecular Systems, Inc. The Abbott *m*2000TM				  is a registered trademark                  of Abbott Laboratories.

� Applera                  Corporation. All rights reserved.
       
Back to Contents
 
Back to Contents

  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|