##### Table of Contents





UNITED STATES SECURITIES AND
    EXCHANGE COMMISSIONWashington, D.C.
    20549
      Form 10-K
  ANNUAL REPORT
    PURSUANT TO SECTION 13 OR 15(d)  OF THE SECURITIES EXCHANGE
    ACT OF 1934 For
    the fiscal year ended June 30, 2008
        MOLEX INCORPORATED
 (Exact name of registrant as
    specified in its charter)
  Delaware

36-2369491(State or other jurisdiction of
    incorporation or organization)

(I.R.S. Employer
    Identification No.)   2222 Wellington Court, Lisle, Illinois 60532
 (Address of principal executive
    offices)
  (630) 969-4550
      SECURITIES
    REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT
  Title of Each Class

Name of Each Exchange on Which RegisteredCommon Stock, par value $0.05

The Nasdaq Stock Market, Inc.Class A Common Stock, par value $0.05

The Nasdaq Stock Market, Inc.   SECURITIES
    REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:
    None
      þ o
  o þ
  þ o
  Regulation S-K Form 10-K Form 10-K. þ
    Large accelerated
    filer þ

Accelerated
    filer o

Non-accelerated
    filer o
    (Do not check if a smaller reporting company)

Smaller reporting
    company o   Rule 12b-2 o þ
    Common Stock


98,451,858Class A Common Stock


78,977,871Class B Common Stock


94,255     DOCUMENTS
    INCORPORATED BY REFERENCE
  Form 10-K.




---



##### 





TABLE OF
    CONTENTS
   
 PagePART IItem 1.


Business


3Item 1A.


Risk Factors


12Item 1B.


Unresolved Staff Comments


18Item 2.


Properties


18Item 3.


Legal Proceedings


18Item 4.


Submission of Matters to a Vote of Security
    Holders


18PART IIItem 5.


Market for the Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities


18Item 6.


Selected Financial Data


21Item 7.


Managements Discussion and Analysis of
    Financial Condition and Results of Operations


22Item 7A.


Quantitative and Qualitative Disclosures About
    Market Risk


37Item 8.


Financial Statements and Supplementary Data


39Item 9.


Changes in and Disagreements with Accountants on
    Accounting Financial Disclosure


71Item 9A.


Controls and Procedures


71Item 9B.


Other Information


72PART IIIItem 10.


Directors, Executive Officers and Corporate
    Governance


72Item 11.


Executive Compensation


72Item 12.


Security Ownership of Certain Beneficial Owners
    and Management and Related Stockholder Matters


73Item 13.


Certain Relationships and Related Transactions,
    and Director Independence


73Item 14.


Principal Accountant Fees and Services


73PART IVItem 15.


Exhibits and Financial Statement Schedules


73Schedule II  Valuation and
    Qualifying Accounts


74Index to Exhibits


75Signatures


762005 Molex Supplemental Executive Retirement PlanMolex Executive Deferred Compensation PlanSummary of Non-Employee Director CompensationForm of Stock Option AgreementForm of Restricted Stock AgreementSubsidiariesConsent of Ernst & Young, LLPCertification of CEO Pursuant to Section 302Certification of CFO Pursuant to Section 302Certification of CEO Pursuant to Section 906Certification of CFO Pursuant to Section 906    Molex Web
    Site
  Form 10-K, Form 10-Q, Form 8-K
    Form 10-K.
 2




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##### Table of Contents



PART I  Item 1.
    Business        The Connector
    Industry
    25-30 year
    
    Globalization.  Synergistic opportunities exist
    for the industry to design, manufacture and sell electronic
    products in different countries around the world in an efficient
    and seamless process. For example, electronic products may be
    designed in Japan, manufactured in China, and sold in the United
    States.
    Convergence of markets.  Traditionally separate
    markets such as consumer electronics, data products and
    telecommunications are converging, resulting in single devices
    offering broad-based functionality.
    Increasing electronics content.  Consumer
    demand for advanced product features, convenience and
    connectivity is driving connector growth at rates faster than
    the growth rates of the underlying electronics markets.
    Product size reduction.  High-density,
    micro-miniature technologies are expanding to markets such as
    data and mobile phones, leading to smaller devices and greater
    mobility.
    Consolidating supply base.  Generally, global
    OEMs are consolidating their supply chain by selecting global
    companies possessing broad product lines for the majority of
    their connector requirements.
    Price erosion.  As unit volumes grow,
    production experience is accumulated and costs decrease, and as
    a result, prices decline. 3




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Markets and
    Products
    Percentage of Fiscal 2008



Primary End Use ProductsMarkets


Net Revenue



Supported by MolexTelecommunications



26
%


Mobile phones and devices, networking equipment, switches and
    transmission equipmentData Products



22
%


Desktop and notebook computers, peripheral equipment, servers,
    storage, copiers, printers and scannersAutomotive



18
%


Engine control units, body electronics, safety electronics,
    sensors, panel instrumentation and other automotive electronicsConsumer



18
%


Digital electronics, CD and DVD players, cameras, plasma and LCD
    televisions, electronic games and major appliancesIndustrial



13
%


Factory automation, robotics, automated test equipment, vision
    systems and diagnostic equipmentOther



3
%


Electronic and electrical devices for a variety of markets   Telecommunications.
    Data Products.
     4




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Automotive.
    Consumer.
    TM on-site
  Industrial.
      Other.
 5




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Business
    Objectives and Strategies
      
    Broad and deep technological knowledge of microelectronic
    devices and techniques, power sources, coatings and materials;
    Strong intellectual property portfolio that underlies many key
    products;
    High product quality standards, backed with stringent systems
    designed to ensure consistent performance, that meet or surpass
    customers expectations;
    Strong technical collaboration with customers;
    Extensive experience with the product development process;
    Broad geographical presence in developed and developing markets;
    Continuous effort to develop an efficient, low-cost
    manufacturing footprint; and
    A broad range of products both for specific applications and for
    general consumption.    
    Concentrate on core markets.  We focus on
    markets where we have the expertise, qualifications and
    leadership position to sustain a competitive advantage. We have
    been an established supplier of interconnect solutions for
    almost 70 years. We are a principal supplier of connector
    components to the telecommunications, computer, consumer,
    automotive and industrial electronics markets.
    Grow through the development and release of new
    products.We invest strategically in the tools
    and resources to develop and market new products and to expand
    existing product lines. New products are essential to enable our
    customers to advance their solutions and their market leadership
    positions. In fiscal 2008, we generated approximately 23% of our
    revenue from new products, which are defined as those products
    released in the last 36 months.
    Optimize manufacturing.  We analyze the design
    and manufacturing patterns of our customers along with our own
    supply chain economics to help ensure that our manufacturing
    operations are of sufficient scale and are located strategically
    to minimize production costs and maximize customer service.
    Leverage financial strength.  We use our
    expected cash flow from operations to invest aggressively in new
    product development, to pursue synergistic acquisitions, to
    align manufacturing capacity with customer requirements and to
    pursue productivity improvements. We invested approximately 12%
    of net revenue in capital expenditures and research and
    development activities in fiscal 2008.   6




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Competition
      Customers, Demand
    Creation and Sales Channels
        
    52% of net revenue originated in Asia-Pacific (China, Hong Kong,
    Indonesia, India, Malaysia, Philippines, Singapore, Taiwan and
    Korea, Japan and Thailand). Approximately 22% and 16% of net
    revenue in fiscal 2008 was derived from operations in China and
    Japan, respectively.
    28% of net revenue originated in the Americas.
    20% of net revenue originated in Europe.         7




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Research and
    Development
          Manufacturing
          Raw
    Materials
   8




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Backlog and
    Seasonality
      Employees
      Acquisitions and
    Investments
    U.S.-based
    Intellectual
    Property
   9




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Environmental
    Matters
        Executive
    Officers
    Positions Held with Registrant




YearName

During the Last Five Years

Age


EmployedFrederick A. Krehbiel(a)

Co-Chairman (1999-); Chief Executive Officer (2004-2005);
    Co-Chief Executive Officer (1999-2001).


67



1965
(b)John H. Krehbiel, Jr.(a)

Co-Chairman (1999-); Co-Chief Executive Officer (1999-2001).


71



1959
(b)Martin P. Slark

Vice-Chairman and Chief Executive Officer (2005-); President and
    Chief Operating Officer (2001-2005); Executive Vice President
    (1999-2001).


53



1976Liam McCarthy

President and Chief Operating Officer (2005-); Regional Vice
    President of Operations, Europe (2000-2005); Interim General
    Manager of Molex Ireland Ltd. (2002-2004).


52



1976David D. Johnson

Executive Vice President, Treasurer and Chief Financial Officer
    (2005-); Vice President, Treasurer and Chief Financial Officer,
    Sypris Solutions, Inc.
    (1998-2005).


52



2005 10




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##### Table of Contents



Positions Held with Registrant




YearName

During the Last Five Years

Age


EmployedGraham C. Brock

Executive Vice President (2005-) and President, Global Sales
    & Marketing Division (2006) and Regional President, Europe
    (2005-); Regional Vice President  Sales &
    Marketing, Europe (2000-2005).


54



1976James E. Fleischhacker

Executive Vice President (2001-) and President, Global
    Transportation Products Division (2007); Corporate Vice
    President (1994-2001); Regional President, Asia Pacific South
    (1998-2001, 2003-2004).


64



1984Katsumi Hirokawa

Executive Vice President (2005-) and President, Global Micro
    Products Division (2007).  Positions at Molex Japan Co., Ltd.:
    President (2002-); Executive Vice President- Sales (2002-2002);
    Senior Director-Sales (1996-2002).


61



1995David B. Root

Executive Vice President and President, Global Commercial
    Products Division (2007); Vice President and Regional
    President, Americas (2005-); Vice President, Sales Americas
    (2004-2005); President, Connector Products Division (2002-2004);
    President, Data Comm Division (2001-2002).


54



1982J. Michael Nauman

Senior Vice President and President, Global Integrated Products
    Division (2007-); President, Integrated Products Division,
    Americas Region (2005-2007); President, High Performance
    Products Division, Americas Region (2004-2005); President, Fiber
    Optics Division, Americas Region (2003-2004); General Manager,
    High Performance Cable Assembly and Adapter Business Units
    (1999-2003).


46



1994Hans A. van Delft

Senior Vice President and President, Global Automation &
    Electrical Products Division (2007-);  President, Woodhead Group
    (2006-2007); Division Manager, General Products Division, Europe
    (2003-2006); Division Manager, Telecom Division (2001-2003);
    General Manager, Molex Singapore (1999-2000).


53



1987     (a)
    
    John H. Krehbiel, Jr. and Frederick A. Krehbiel (the Krehbiel
    Family) are brothers. The members of the Krehbiel Family may be
    considered to be control persons of the Registrant.
    The other executive officers listed above have no relationship,
    family or otherwise, to the Krehbiel Family, the Registrant or
    each other.(b)
    
    Includes period employed by our predecessor company. 11




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##### Table of Contents



Code of Business
    Conduct and Ethics
      Item 1A.
    Risk
    Factors  Forward-looking
    Statements
  Form 10-K
    Risk
    Factors
    We are dependent
    on the success of our customers.
   12




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We are subject to
    continuing pressure to lower our prices.
    We face rising
    costs of commodity materials.
    We face intense
    competition in our markets.
  non-U.S. competitors
  We are dependent
    on new products.
      We face
    manufacturing challenges.
   13




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We face industry
    consolidation.
    We depend on
    industries exposed to rapid technological change.
    We face the
    possibility that our gross margins may decline.
   14




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We face risks
    associated with inventory.
    We may encounter
    problems associated with our global operations.
    
    International business conditions including the relationships
    between the U.S., Chinese and other governments;
    Unexpected changes in laws, regulations, trade, monetary or
    fiscal policy, including interest rates, foreign currency
    exchange rates and changes in the rate of inflation in the U.S.,
    China or other foreign countries;
    Tariffs, quotas and other import or export restrictions and
    other trade barriers;
    Difficulties in staffing and management;
    Language and cultural barriers; and
    Potentially adverse tax consequences.    We are exposed to
    fluctuations in currency exchange rates.
  non-U.S. currency
 15




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We may find that
    our products have quality issues.
    We face risks in
    making acquisitions.
    
    Successfully identifying and completing transactions;
    Difficulty in integrating acquired operations, technology and
    products or realizing cost savings or other anticipated benefits
    from integration;
    Retaining customers and existing contracts;
    Retaining the key employees of the acquired operation;
    Potential disruption of our or the acquired companys
    ongoing business;
    Unanticipated expenses related to integration; and
    Potential unknown liabilities associated with the acquired
    company.    We face risks
    arising from reorganizations of our operations.
     16




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We depend on our
    key employees and face competition in hiring and retaining
    qualified employees.
    We are subject to
    various laws and government regulations.
      We rely on our
    intellectual property rights.
      We could suffer
    significant business interruptions.
   17




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##### Table of Contents



Item 1B.
    Unresolved
    Staff Comments    Item 2.
    Properties        
    Americas: United States, Nogales, Guadalajara and Juarez
    Asia Pacific: Japan, Korea, Vietnam, Thailand, China, India,
    Malaysia, Singapore and Taiwan
    Europe: France, Germany, Italy, Poland, Slovakia and Ireland  Item 3.
    Legal
    Proceedings    Item 4.
    Submission
    of Matters to a Vote of Security Holders   PART II  Item 5.
    Market
    for the Registrants Common Equity, Related Stockholder
    Matters and Issuer Purchases of Equity Securities        2008


2007


2006Low  High


Low  High


Low  HighCommon Stock


1st


$
23.89


$
30.66


$
29.66


$
39.27


$
25.34


$
29.202nd



26.77



29.12



30.91



39.49



24.07



28.023rd



21.82



26.85



28.15



31.70



25.89



33.394th



23.97



29.95



28.01



31.53



32.48



39.36   18




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##### Table of Contents



2008


2007


2006Low  High


Low  High


Low  HighClass A Common Stock


1st


$
22.82


$
27.54


$
25.57


$
33.12


$
23.54


$
26.502nd



25.25



27.68



27.22



33.27



22.82



27.153rd



21.08



25.89



24.72



27.78



24.33



29.874th



22.11



27.50



24.66



28.20



27.94



33.47     Class ACommon Stock


Common Stock2008


2007


2008


2007Quarter ended:September 30

$
0.1125


$
0.0750


$
0.1125


$
0.0750December 31


0.1125



0.0750



0.1125



0.0750March 31


0.1125



0.0750



0.1125



0.0750June 30


0.1125



0.0750



0.1125



0.0750Total

$
0.4500


$
0.3000


$
0.4500


$
0.3000   and/or and/or
  Total Number ofShares Purchased asTotal Number of


Average Price


Part of PubliclyShares Purchased


Paid per Share


Announced PlanApril 1  April 30Common Stock





$




Class A Common Stock


14


$
21.89



May 1  May 31Common Stock


175


$
29.10



175Class A Common Stock


894


$
26.92



850June 1  June 30Common Stock





$




Class A Common Stock


212


$
26.39



205Total


1,295


$
27.07



1,230     and/or
   19




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##### Table of Contents



Performance
    Graph
    Comparison of
    Five-Year Cumulative Total Return
    (Value of Investment of $100 on June 30, 2003)
    Among Molex Incorporated, the S&P 500 Index
    and a Peer Group
  
  06/30/03


06/30/04


06/30/05


06/30/06


06/30/07


06/30/08Molex Incorporated


$
100.00



$
119.16



$
97.25



$
126.33



$
114.00



$
94.36Molex Incorporated Class A



100.00




119.01




103.06




127.17




118.79




104.42S&P 500



100.00




119.11




126.64




137.57




165.90




144.13Peer Group



100.00




137.60




126.97




148.41




177.61




159.37    20




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##### Table of Contents



Item 6.
    Selected
    Financial Data  Molex
    Incorporated
  Five-Year
    Financial Highlights Summary
   2008


2007


2006


2005


2004Operations:Net revenue

$
3,328,347


$
3,265,874


$
2,861,289


$
2,554,458


$
2,249,018Gross profit


1,014,235



1,016,708



942,630



832,662



732,832Income from operations


317,950



321,550



309,744



203,264



213,462Income before income taxes


338,648



338,257



327,884



223,201



231,757Net income(1)


215,437



240,768



236,091



150,116



168,096Earnings per share:Basic

$
1.19


$
1.31


$
1.27


$
0.80


$
0.88Diluted


1.19



1.30



1.26



0.79



0.87Net income percent of net revenue


6.5
%


7.4
%


8.3
%


5.9
%


7.5
%Capital expenditures

$
234,626


$
296,861


$
276,783


$
230,895


$
189,724Return on invested capital(2)


7.4
%


9.0
%


10.3
%


6.7
%


8.1
%Financial Position:Current assets

$
1,782,960


$
1,590,827


$
1,548,233


$
1,374,063


$
1,165,508Current liabilities


649,438



530,951



594,812



469,504



424,766Working capital(3)


1,133,522



1,059,876



953,421



904,559



740,742Current ratio(4)


2.7



3.0



2.6



2.9



2.7Property, plant and equipment, net

$
1,172,395


$
1,121,369


$
1,025,852


$
984,237


$
1,023,020Total assets


3,599,537



3,316,108



2,974,420



2,730,162



2,575,286Long-term debt and capital leases


151,085



130,779



8,815



9,975



14,039Stockholders equity


2,676,846



2,523,031



2,281,869



2,170,754



2,070,422Dividends declared per share

$
0.45


$
0.30


$
0.225


$
0.15


$
0.10Average common shares outstanding:Basic


180,474



183,961



185,521



188,646



190,207Diluted


181,395



185,565



187,416



190,572



192,186     (1)
    
    Fiscal 2008 results include a charge for restructuring costs and
    asset impairments of $31.2 million ($21.0 million
    after-tax). Fiscal 2007 results include a charge for
    restructuring costs and asset impairments of $36.9 million
    ($30.3 million after-tax). Fiscal 2006 results include a
    restructuring charge of $26.4 million ($19.2 million
    after-tax). Fiscal 2005 results include a charge for
    restructuring costs and asset impairments of $30.2 million
    ($23.0 million after-tax) and a charge for goodwill
    impairment of $22.9 million ($22.9 million after-tax).
    See Notes 5 and 8 of the Notes to Consolidated Financial
    Statements for a discussion of our restructuring costs and
    goodwill impairment.(2)
    
    Return on invested capital is defined as the current year net
    income divided by the sum of average total assets less average
    current liabilities for the year.(3)
    
    Working capital is defined as current assets minus current
    liabilities.(4)
    
    Current ratio is defined as current assets divided by current
    liabilities. 21




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Item 7.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations    Overview
        Percentage of Net Revenue2008


2007


2006Consumer


18
%


18
%


19
%Telecommunication


26



26



30Automotive


18



18



18Data


22



21



22Industrial


13



15



9Other


3



2



2Total


100
%


100
%


100
%      22




---



##### Table of Contents



Financial
    Highlights
     23




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##### Table of Contents



Critical
    Accounting Estimates
      Revenue
    Recognition
      Income
    Taxes
         24




---



##### Table of Contents



non-U.S. net
  Inventory
  first-in,
  Pension
    Plans
   25




---



##### Table of Contents



Increase (Decrease)


Increase (Decrease)in PBO


in Pension ExpenseU.S. Plan


Intl Plans


U.S. Plan


Intl PlansDiscount rate change:Increase 50 basis points

$
(3,795
)

$
(8,306
)

$
(325
)

$
(103
)Decrease 50 basis points


4,104



9,331



336



123Expected rate of return change:Increase 100 basis points


N/A



N/A



(566
)


(689
)Decrease 100 basis points


N/A



N/A



566



689   Other
    Postretirement Benefits
    2008


2007


2006Increase (decrease) in total annual service and interest cost:Increase 100 basis points

$
1,219


$
1,287


$
1,476Decrease 100 basis points


(968
)


(1,014
)


(1,211
)Increase (decrease) in APBO:Increase 100 basis points

$
7,987


$
9,057


$
9,951Decrease 100 basis points


(6,452
)


(7,270
)


(8,164
)   Goodwill
         26




---



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Restructuring
    Costs and Asset Impairments
      Impairment of
    Long-Lived Assets
    New Accounting
    Pronouncements
       27




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Results of
    Operations
      Percentage of





Percentage of





Percentage of2008


Revenue


2007


Revenue


2006


RevenueNet revenue

$
3,328,347



100.0
%

$
3,265,874



100.0
%

$
2,861,289



100.0
%Cost of sales


2,314,112



69.5
%


2,249,166



68.9
%


1,918,659



67.1
%Gross profit


1,014,235



30.5
%


1,016,708



31.1
%


942,630



32.9
%Selling, general & administrative


665,038



20.0
%


658,289



20.1
%


606,532



21.1
%Restructuring costs and asset impairments


31,247



0.9
%


36,869



1.1
%


26,354



0.9
%Income from operations


317,950



9.6
%


321,550



9.9
%


309,744



10.8
%Other income, net


20,698



0.6
%


16,707



0.5
%


18,140



0.7
%Income before income taxes


338,648



10.2
%


338,257



10.4
%


327,884



11.5
%Income taxes


123,211



3.7
%


97,489



3.0
%


91,793



3.2
%Net income

$
215,437



6.5
%

$
240,768



7.4
%

$
236,091



8.3
%   Net
    Revenue
    2008


2007Consumer


3
%


9
%Telecommunications


3



3Automotive


7



11Data


4



6Industrial


(11
)


100     
    Consumer market revenue increased in fiscal 2008 due to higher
    demand for our connectors used in home entertainment products.
    However, revenue growth this year has moderated in part due to
    our customers concerns regarding global economies. 28




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##### Table of Contents




    Telecommunications market revenue was higher in fiscal 2008 due
    to higher demand for our networking products. While we
    experienced strong revenue growth in the telecommunications
    market in late fiscal 2006 and early 2007, we experienced a
    sharp decline in revenue from mobile phone customers during the
    second half of fiscal 2007. This negative trend began to
    stabilize during the second half of fiscal 2008.
    Revenue in the automotive sector was higher in fiscal 2008 and
    2007 primarily due to higher revenue in Europe and Asia, a
    portion of which is attributed to the currency translation
    impact of a weaker U.S. dollar in fiscal 2008. Revenue in
    the U.S. automotive market was lower in fiscal 2008
    compared with fiscal 2007. The automotive market has benefited
    from new products reflecting higher electronic content in
    automobiles and an increase in revenue of our standard products
    to traditional customers. We believe that the number of
    automobiles manufactured by our customers was lower in fiscal
    2008; however, our customers have trended toward reducing their
    vendor list, which when coupled with the higher electronic
    content used in new automobiles, has resulted in an increase in
    our revenue.
    Data market revenue increased in fiscal 2008 due to our
    customers releases of new high end products and their
    expansion in new optical and high speed technologies, for which
    we offer a strong product line. Revenue growth in the data
    market has moderated during this year due in part to our
    customers concerns regarding global economies.
    The industrial market declined due largely to a cable assembly
    product that had high revenue levels in fiscal 2007 but little
    revenue in fiscal 2008 because our customer was enhancing their
    product line. Woodhead contributed 84% of the 100% growth in
    industrial sales in fiscal 2007 compared with fiscal 2006.    2008


2007


2006Americas


27.6
%


28.7
%


28.6
%Asia Pacific


52.0



51.1



52.6Europe


20.4



20.2



18.8Total


100.0
%


100.0
%


100.0
%     2008


2007Net revenue for prior year

$
3,265,874


$
2,861,289Components of net revenue (decrease) increase:Organic net revenue growth (decline)


(106,863
)


141,887Currency translation


169,336



60,219Woodhead acquisition






202,479Total change in net revenue from prior year


62,473



404,585Net revenue for current year

$
3,328,347


$
3,265,874Organic net revenue growth (decline) as a percentage of net
    revenue for prior year


(3.3
)%


5.0
%    29




---



##### Table of Contents



June 30, 2008


June 30, 2007Local


Currency


Net


Local


Currency


NetCurrency


Translation


Change


Currency


Translation


ChangeAmericas

$
(23,304
)

$
3,637


$
(19,667
)

$
116,022


$
1,640


$
117,662Asia Pacific


(26,974
)


89,405



62,431



145,537



17,158



162,695Europe


(54,735
)


76,294



21,559



74,165



47,148



121,313Corporate & Other


(1,850
)






(1,850
)


2,915







2,915Net change

$
(106,863
)

$
169,336


$
62,473


$
338,639


$
65,946


$
404,585     2008


2007Americas


(2.5
)%


14.2
%Asia Pacific


(1.6
)


9.7Europe


(8.3
)


13.8Total


(3.3
)%


11.8
%     2008


2007


2006Connector

$
1,879,443


$
1,885,431


$
1,721,459Transportation


498,141



472,257



424,740Custom & Electrical


941,365



892,756



650,332Corporate & Other


9,398



15,430



64,758Total

$
3,328,347


$
3,265,874


$
2,861,289   Gross
    Profit
    2008


2007


2006Gross profit

$
1,014,235


$
1,016,708


$
942,630Gross margin


30.5
%


31.1
%


32.9
%       2008


2007


2006Copper (price per pound)

$
3.49


$
3.20


$
2.28Gold (price per troy ounce)


825.00



636.00



525.00  30




---



##### Table of Contents



2008


2007Price erosion

$
(132,758
)

$
(131,435
)Currency translation


48,842



12,595Currency transaction


(18,393
)


18,166       Operating
    Expenses
    2008


2007


2006Selling, general & administrative

$
665,038


$
658,289


$
606,532Selling, general & administrative as a percentage of
    revenue


20.0
%


20.1
%


21.1
%Restructuring costs and asset impairments


31,247



36,869



26,354         Restructuring
    costs and asset impairments
   31




---



##### Table of Contents



Effective Tax
    Rate
    2008


2007


2006Effective tax rate


36.4
%


28.8
%


28.0
%     Backlog
    2008


2007


2006Backlog

$
436,487


$
332,479


$
369,966  32




---



##### Table of Contents



Connector
    2008


2007Net revenue for prior year

$
1,885,431


$
1,721,459Components of net revenue increase (decrease):Organic net revenue (decline) growth


(101,466
)


130,530Currency translation


95,478



33,442Total change in net revenue from prior year


(5,988
)


163,972Net revenue for current year

$
1,879,443


$
1,885,431Organic net revenue (decline) growth as a percentage of net
    revenue for prior year


(5.4
)%


7.6
%         2008


2007


2006Income from operations

$
302,240


$
354,358


$
411,329Operating margin


16.1
%


18.8
%


23.9
%    33




---



##### Table of Contents



Transportation
    2008


2007Net revenue for prior year

$
472,257


$
424,740Components of net revenue increase (decrease):Organic net revenue (decline) growth


(3,171
)


39,565Currency translation


29,055



7,952Total change in net revenue from prior year


25,884



47,517Net revenue for current year

$
498,141


$
472,257Organic net revenue (decline) growth as a percentage of net
    revenue for prior year


(0.7
)%


9.3
%       2008


2007


2006Income from operations

$
15,356


$
7,476


$
(4,472
)Operating margin


3.1
%


1.6
%


(1.1
)%     Custom &
    Electrical
    2008


2007Net revenue for prior year

$
892,756


$
650,332Components of net revenue increase:Organic net revenue growth


4,455



16,292Currency translation


44,154



23,653Acquisitions






202,479Total change in net revenue from prior year


48,609



242,424Net revenue for current year

$
941,365


$
892,756Organic net revenue growth as a percentage of net revenue for
    prior year


0.5
%


2.5
%    34




---



##### Table of Contents



2008


2007


2006Income from operations

$
94,076


$
52,898


$
29,047Operating margin


10.0
%


5.9
%


4.5
%     Non-GAAP Financial
    Measures
      Financial
    Condition and Liquidity
  non-U.S. accounts non-U.S. accounts
    Cash
    Flows
    2008


2007


2006Cash provided from operating activities

$
479,134


$
451,434


$
443,856Cash used for investing activities


(218,156
)


(446,129
)


(240,779
)Cash provided by (used for) financing activities


(197,306
)


28,529



(189,814
)Effect of exchange rate changes on cash


33,474



11,712



9,796Net increase in cash and cash equivalents

$
97,146


$
45,546


$
23,059  35




---



##### Table of Contents



Operating
    Activities
      Investing
    Activities
  U.S.-based
      Financing
    Activities
         36




---



##### Table of Contents



Contractual
    Obligations and Commercial Commitments
    Less Than


1-3


3-5


More ThanTotal


1 Year


Years


Years


5 YearsOperating lease obligations

$
39,831


$
13,774


$
11,797


$
8,757


$
5,503Capital lease obligations


5,118



2,858



2,212



47



1Other long-term liabilities


17,798



4,673



3,930



626



8,569Debt obligations


147,626



1,398



145,668



488



72Total(1)

$
210,373


$
22,703


$
163,607


$
9,918


$
14,145     (1)
    
    Total does not include contractual obligations recorded on the
    balance sheet as current liabilities or certain purchase
    obligations, as discussed below. Debt and capital lease
    obligations include interest payments.    agreed-upon
  Off-Balance Sheet
    Arrangements
      Item 7A.
    Quantitative
    and Qualitative Disclosures About Market Risk     37




---



##### Table of Contents



38




---



##### 



Item 8.
    Financial
    Statements and Supplementary Data  Molex
    Incorporated
  Index to
    Consolidated Financial Statements
   
 PageConsolidated Balance Sheets


40Consolidated Statements of Income


41Consolidated Statements of Cash Flows


42Consolidated Statements of Stockholders
    Equity


43Notes to Consolidated Financial Statements


44Report of Independent Registered Public
    Accounting Firm


69Report of Independent Registered Public
    Accounting Firm on Internal Control Over Financial Reporting


70   39




---



##### Table of Contents



Molex
    Incorporated
  Consolidated
    Balance Sheets
   June 30,2008


2007ASSETSCurrent assets:Cash and cash equivalents

$
475,507


$
378,361Marketable securities


34,298



82,549Accounts receivable, less allowances of $40,243 in 2008 and
    $31,064 in 2007


740,827



685,666Inventories


458,295



392,680Deferred income taxes


23,444



16,171Prepaid expenses


50,589



35,400Total current assets


1,782,960



1,590,827Property, plant and equipment, net


1,172,395



1,121,369Goodwill


373,623



334,791Non-current deferred income taxes


62,521



103,626Other assets


208,038



165,495Total assets

$
3,599,537


$
3,316,108LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Short-term loans

$
66,687


$
1,537Accounts payable


350,413



279,847Accrued expenses:Salaries, commissions and bonuses


74,689



66,532Other


84,525



121,358Income taxes payable


73,124



61,677Total current liabilities


649,438



530,951Other non-current liabilities


21,346



25,612Accrued pension and other postretirement benefits


105,574



108,693Long-term debt


146,333



127,821Total liabilities


922,691



793,077Commitments and contingenciesStockholders equity:Common Stock, $0.05 par value; 200,000 shares
    authorized; 112,195 shares issued at 2008 and
    111,730 shares issued at 2007


5,610



5,587Class A Common Stock, $0.05 par value;
    200,000 shares authorized; 109,841 shares issued at
    2008 and 108,562 shares issued at 2007


5,492



5,428Class B Common Stock, $0.05 par value; 146 shares
    authorized; 94 shares issued at 2008 and 2007


5



5Paid-in capital


569,046



520,037Retained earnings


2,785,099



2,650,470Treasury stock (Common Stock, 13,744 shares at 2008 and
    12,297 shares at 2007; Class A Common Stock,
    30,948 shares at 2008 and 24,040 shares at 2007), at
    cost


(1,009,021
)


(799,894
)Accumulated other comprehensive income


320,615



141,398Total stockholders equity


2,676,846



2,523,031Total liabilities and stockholders equity

$
3,599,537


$
3,316,108    40




---



##### Table of Contents



Molex
    Incorporated
  Consolidated
    Statements of Income
   Years Ended June 30,2008


2007


2006Net revenue

$
3,328,347


$
3,265,874


$
2,861,289Cost of sales


2,314,112



2,249,166



1,918,659Gross profit


1,014,235



1,016,708



942,630Selling, general and administrative


665,038



658,289



606,532Restructuring costs and asset impairments


31,247



36,869



26,354Total operating expenses


696,285



695,158



632,886Income from operations


317,950



321,550



309,744Gain (loss) on investments


(119
)


1,159



(1,245
)Equity income


11,625



6,966



9,456Interest income, net


9,192



8,582



9,929Total other income, net


20,698



16,707



18,140Income before income taxes


338,648



338,257



327,884Income taxes


123,211



97,489



91,793Net income

$
215,437


$
240,768


$
236,091Earnings per share:Basic

$
1.19


$
1.31


$
1.27Diluted

$
1.19


$
1.30


$
1.26Average common shares outstanding:Basic


180,474



183,961



185,521Diluted


181,395



185,565



187,416    41




---



##### Table of Contents



Molex
    Incorporated
  Consolidated
    Statements of Cash Flows
   Years Ended June 30,2008


2007


2006Operating activities:Net income

$
215,437


$
240,768


$
236,091Add (deduct) non-cash items included in net income:Depreciation and amortization


252,344



237,912



214,657Asset write-downs included in restructuring costs


13,599



8,667



2,870(Gain) loss on investments


111



(1,154
)


1,245Deferred income taxes


31,096



20,998



(8,501
)Loss (gain) on sale of property, plant and equipment


296



1,800



(701
)Share-based compensation


24,249



27,524



30,548Other non-cash items


(6,778
)


23,373



3,859Changes in assets and liabilities, excluding effects of foreign
    currency adjustments and acquisitions:Accounts receivable


478



27,913



(112,873
)Inventories


(26,240
)


(16,514
)


(45,987
)Accounts payable


34,197



(57,479
)


43,875Other current assets and liabilities


(45,798
)


(60,421
)


58,857Other assets and liabilities


(13,857
)


(1,953
)


19,916Cash provided from operating activities


479,134



451,434



443,856Investing activities:Capital expenditures


(234,626
)


(296,861
)


(276,783
)Proceeds from sales of property, plant and equipment


14,978



9,946



24,436Proceeds from sales or maturities of marketable securities


811,724



4,856,301



1,351,165Purchases of marketable securities


(764,966
)


(4,785,080
)


(1,313,829
)Acquisitions, net of cash acquired


(42,503
)


(238,072
)


(24,565
)Other investing activities


(2,763
)


7,637



(1,203
)Cash used for investing activities


(218,156
)


(446,129
)


(240,779
)Financing activities:Proceeds from revolving credit facility and short-term loans


139,590



44,000



Payments on revolving credit facility


(75,000
)


(44,000
)


Proceeds from issuance of long-term debt






131,045



Payments of long-term debt


(1,948
)


(26,937
)


(3,693
)Cash dividends paid


(74,598
)


(55,176
)


(34,843
)Exercise of stock options


16,732



15,416



15,783Excess tax benefits from share-based compensation


1,677



1,714



369Purchase of treasury stock


(199,583
)


(34,889
)


(165,323
)Other financing activities


(4,176
)


(2,644
)


(2,107
)Cash provided from (used for) financing activities


(197,306
)


28,529



(189,814
)Effect of exchange rate changes on cash


33,474



11,712



9,796Net increase in cash and cash equivalents


97,146



45,546



23,059Cash and cash equivalents, beginning of year


378,361



332,815



309,756Cash and cash equivalents, end of year

$
475,507


$
378,361


$
332,815Supplemental cash flow information:Interest paid

$
3,599


$
2,857


$
928Income taxes paid

$
64,641


$
96,531


$
70,092    42




---



##### Table of Contents



Molex
    Incorporated
  Consolidated
    Statements of Stockholders Equity
   Years Ended June 30,2008


2007


2006Common stock

$
11,107


$
11,020


$
10,900Paid-in capital:Beginning balance

$
520,037


$
442,586


$
425,259Reclassification from deferred unearned compensation










(38,357
)Stock-based compensation


24,249



27,524



30,548Exercise of stock options


22,738



37,101



23,958Issuance of stock awards


1,743



2,059



Reclass of directors deferred compensation plan






6,059



Other


279



4,708



1,178Ending balance

$
569,046


$
520,037


$
442,586Retained earnings:Beginning balance

$
2,650,470


$
2,464,889


$
2,270,677Net income


215,437



240,768



236,091Dividends


(80,756
)


(55,205
)


(41,613
)Other


(52
)


18



(266
)Ending balance

$
2,785,099


$
2,650,470


$
2,464,889Treasury stock:Beginning balance

$
(799,894
)

$
(743,219
)

$
(568,917
)Purchase of treasury stock


(199,583
)


(34,889
)


(165,323
)Exercise of stock options


(9,544
)


(21,801
)


(8,736
)Other






15



(243
)Ending balance

$
(1,009,021
)

$
(799,894
)

$
(743,219
)Deferred unearned compensation:Beginning balance

$



$



$
(38,357
)Reclassification to paid-in capital










38,357Ending balance

$



$



$
Accumulated other comprehensive income, net of tax:Beginning balance

$
141,398


$
106,713


$
71,296Translation adjustments


165,706



51,009



34,934Pension adjustments, net of tax


3,309



(3,135
)


Adjustment for initially applying SFAS No. 158, net of
    tax






(17,965
)


Unrealized investment gain, net of tax


10,202



4,776



483Ending balance

$
320,615


$
141,398


$
106,713Total stockholders equity

$
2,676,846


$
2,523,031


$
2,281,869Comprehensive income, net of tax:Net income

$
215,437


$
240,768


$
236,091Translation adjustments


165,706



51,009



34,934Pension adjustments, net of tax


3,309



(3,135
)


Unrealized investment gain, net of tax


10,202



4,776



483Total comprehensive income, net of tax

$
394,654


$
293,418


$
271,508    43




---



##### Table of Contents



Molex
    Incorporated
  Notes
    to Consolidated Financial Statements
  1.
    Organization and
    Basis of Presentation    2.
    Summary of
    Significant Accounting Policies  Principles of
    Consolidation
    Use of
    Estimates
    Currency
    Translation
    Cash and Cash
    Equivalents
    Marketable
    Securities
  non-U.S. local
    Accounts
    Receivable
   44




---



##### Table of Contents



Molex
    Incorporated
  Notes to
    Consolidated Financial
    Statements  (Continued)
    Inventories
  first-in,
  Property, Plant
    and Equipment
      Buildings


25  40 yearsMachinery and equipment


3  10 yearsMolds and dies


2  4 years     Goodwill
    Pension and Other
    Postretirement Plan Benefits
    Revenue
    Recognition
   45




---



##### Table of Contents



Molex
    Incorporated
  Notes to
    Consolidated Financial
    Statements  (Continued)
                Research and
    Development
    Income
    Taxes
    Derivative
    Instruments and Hedging Activities
   46




---



##### Table of Contents



Molex
    Incorporated
  Notes to
    Consolidated Financial
    Statements  (Continued)
  Stock-Based
    Compensation
    Accounting
    Changes
  Uncertainty in
    Income Taxes
    Pension and
    Postretirement Medical Benefit Plans
    New Accounting
    Pronouncements
  Business
    Combinations
    Noncontrolling
    Interests
    Derivative
    Instruments
   47




---



##### Table of Contents



Molex
    Incorporated
  Notes to
    Consolidated Financial
    Statements  (Continued)
    3.
    Earnings Per
    Share    2008


2007


2006Net income

$
215,437


$
240,768


$
236,091Basic average common shares outstanding


180,474



183,961



185,521Effect of dilutive stock options


921



1,604



1,895Diluted average common shares outstanding


181,395



185,565



187,416Earnings per share:Basic

$
1.19


$
1.31


$
1.27Diluted

$
1.19


$
1.30


$
1.26     4.
    Acquisitions  U.S.-based
      Current assets

$
95,724Land and depreciable assets


47,946Goodwill


177,093Intangible assets


39,000Assets acquired


359,763Liabilities assumed


100,109Restructuring (See Note 5)


3,999Non-current deferred tax liabilities, net


17,583Total purchase price

$
238,072  48




---



##### Table of Contents



Molex
    Incorporated
  Notes to
    Consolidated Financial
    Statements  (Continued)
    Net revenue

$
3,084,000Income from operations


325,000Net income


246,000Net income per common share  basic


1.33Net income per common share  diluted


1.31     5.
    Restructuring and
    Asset Impairments  Molex
    Restructuring Plans
         49




---



##### Table of Contents



Molex
    Incorporated
  Notes to
    Consolidated Financial
    Statements  (Continued)
      2008


2007


2006Connector:Severance costs

$
2,492


$
3,492


$
1,519Asset impairments


9,482







Total

$
11,974


$
3,492


$
1,519Transportation:Severance costs

$
662


$
3,182


$
7,789Asset impairments


1,898



2,732



1,373Total

$
2,560


$
5,914


$
9,162Custom & Electrical:Severance costs

$
3,144


$
8,721


$
6,863Asset impairments


193



3,485



426Total

$
3,337


$
12,206


$
7,289Corporate and Other:Severance costs

$
11,350


$
11,307


$
7,313Asset impairments


2,026



2,450



1,071Other






1,500



Total

$
13,376


$
15,257


$
8,384Total:Severance costs

$
17,648


$
26,702


$
23,484Asset impairments


13,599



8,667



2,870Other






1,500



Total

$
31,247


$
36,869


$
26,354     Woodhead
    Restructuring Plan
   50




---



##### Table of Contents



Molex
    Incorporated
  Notes to
    Consolidated Financial
    Statements  (Continued)
        Restructuring PlansMolex


Woodhead


TotalBalance at June 30, 2005

$
10,285


$



$
10,285Charges to expense


23,484







23,484Cash payments


(17,828
)






(17,828
)Balance at June 30, 2006

$
15,941


$



$
15,941Charges to expense


26,702







26,702Purchase accounting allocation






3,999



3,999Cash payments


(11,788
)


(30
)


(11,818
)Non-cash related costs


(2,659
)






(2,659
)Balance at June 30, 2007

$
28,196


$
3,969


$
32,165Charges to expense


20,711



655



21,366Cash payments


(31,481
)


(3,498
)


(34,979
)Non-cash related costs


1,368



(78
)


1,290Balance at June 30, 2008

$
18,794


$
1,048


$
19,842   6.
    Inventories    2008


2007Raw materials

$
81,407


$
85,320Work in progress


144,683



107,394Finished goods


232,205



199,966Total inventories

$
458,295


$
392,680  51




---



##### Table of Contents



Molex
    Incorporated
  Notes to
    Consolidated Financial
    Statements  (Continued)
  7.  Property,
    Plant and Equipment
    2008


2007Land and improvements

$
69,104


$
67,943Buildings and leasehold improvements


663,524



614,466Machinery and equipment


1,641,110



1,502,406Molds and dies


754,589



668,452Construction in progress


115,763



92,157Total


3,244,090



2,945,424Accumulated depreciation


(2,071,695
)


(1,824,055
)Net property, plant and equipment

$
1,172,395


$
1,121,369     8.
    Goodwill    2008


2007Beginning balance

$
334,791


$
149,458Additions


29,147



183,677Foreign currency translation


9,685



1,656Ending balance

$
373,623


$
334,791   U.S.-based
    9.
    Other Intangible
    Assets   52




---



##### Table of Contents



Molex
    Incorporated
  Notes to
    Consolidated Financial
    Statements  (Continued)
    June 30, 2008


June 30, 2007Gross





Net


Gross





NetCarrying


Accumulated


Carrying


Carrying


Accumulated


CarryingAmount


Amortization


Amount


Amount


Amortization


AmountCustomer-related

$
24,546


$
(3,120
)

$
21,426


$
18,591


$
(1,425
)

$
17,166Technology-based


19,192



(5,431
)


13,761



13,306



(2,859
)


10,447License fees


9,561



(5,144
)


4,417



6,120



(4,799
)


1,321Total

$
53,299


$
(13,695
)

$
39,604


$
38,017


$
(9,083
)

$
28,934     Year Ended June 30,2008


2007Weighted





WeightedCarrying


Average


Carrying


AverageAmount


Life


Amount


LifeCustomer-related

$
5,900



20 years


$
16,696



22 yearsTechnology-based


5,800



10 years



6,200



5 yearsLicense fees


4,390



5 years



50



1 yearTrade names


1,900



Indefinite



18,700



IndefiniteTotal

$
17,990






$
41,646     Amount2009

$
5,5782010


5,1682011


4,0992012


4,0192013 and thereafter


20,740Total

$
39,604   10.
    Investments   53




---



##### Table of Contents



Molex
    Incorporated
  Notes to
    Consolidated Financial
    Statements  (Continued)
  11.
    Income
    Taxes    2008


2007


2006United States

$
133,969


$
86,229


$
57,177International


204,679



252,028



270,707Income before income taxes

$
338,648


$
338,257


$
327,884     2008


2007


2006Current:U.S. Federal

$
26,211


$
5,406


$
8,204State


2,803



318



1,649International


63,101



70,767



90,441Total currently payable

$
92,115


$
76,491


$
100,294Deferred:U.S. Federal

$
42,183


$
12,579


$
296State


(89
)


370



(289
)International


(10,998
)


8,049



(8,508
)Total deferred


31,096



20,998



(8,501
)Total income tax expense

$
123,211


$
97,489


$
91,793     2008


2007


2006U.S. Federal income tax rate


35.0
%


35.0
%


35.0
%Permanent tax exemptions


(1.3
)


(1.6
)


(2.6
)Repatriation of foreign earnings


(0.5
)


(4.5
)


(4.3
)Tax examinations and settlements


(0.2
)


(1.4
)


(0.9
)Provision for tax contingencies


1.0







Valuation allowance


(0.3
)


0.4



1.6Investments










(0.8
)State income taxes, net of Federal tax benefit


0.8



0.4



0.4Foreign tax rates less than U.S. Federal rate (net)


(4.4
)


(0.8
)


(0.8
)Adjustments to foreign tax credits


5.1







Other


1.2



1.3



0.4Effective tax rate


36.4
%


28.8
%


28.0
%    54




---



##### Table of Contents



Molex
    Incorporated
  Notes to
    Consolidated Financial
    Statements  (Continued)
    non-U.S. net non-U.S. net
  non-U.S. net
    2008


2007Deferred tax assets:Pension and other postretirement liabilities

$
40,339


$
37,548Stock option and other benefits


24,968



22,619Capitalized research and development


16,602



20,549Foreign tax credits






24,157Net operating losses


38,931



39,917Depreciation and amortization


2,812



Inventory


15,134



11,905Minimum tax credit






15,414Allowance for doubtful accounts


8,683



4,648Other, net


14,117



15,003Total deferred tax assets before valuation allowance


161,586



191,760Valuation allowance


(38,289
)


(39,366
)Total deferred tax assets


123,297



152,394Deferred tax liabilities:Investments


(25,465
)


(20,136
)Depreciation and amortization


(11,867
)


(12,461
)Total deferred tax liabilities


(37,332
)


(32,597
)Total net deferred tax assets

$
85,965


$
119,797     2008


2007Net deferred taxes:Current asset

$
23,444


$
16,171Non-current asset


62,521



103,626Total

$
85,965


$
119,797   non-U.S. subsidiaries
 55




---



##### Table of Contents



Molex
    Incorporated
  Notes to
    Consolidated Financial
    Statements  (Continued)
      2008June 30


July 1Unrecognized tax benefits

$
14,559


$
12,581Portion that, if recognized, would reduce tax expense and
    effective tax rate


14,559



10,481     2008Balance as of July 1, 2007

$
12,581Additions based on tax positions related to the current year


874Additions for tax positions of prior years


4,735Reductions for tax positions of prior years


(3,010
)Reductions due to lapse of applicable statute of limitations


(621
)Balance at June 30, 2008

$
14,559       12.
    Profit Sharing,
    Pension and Post Retirement Medical Benefit Plans  Profit Sharing
    Plans
    Pension
    Plans
  and/or non-U.S. subsidiaries. Non-U.S. plans
 56




---



##### Table of Contents



Molex
    Incorporated
  Notes to
    Consolidated Financial
    Statements  (Continued)
  Post Retirement
    Medical Benefit Plans
    Benefit
    Obligation and Plan Assets
    U.S. Pension

Non-U.S. Pension

PostretirementBenefits

Benefits

Medical Benefits2008

2007

2008

2007

2008

2007Accumulated benefit obligation

$
47,609


$
48,004


$
99,677


$
93,330


$
46,779


$
50,756     U.S. Pension


Non-U.S. Pension


PostretirementBenefits


Benefits


Medical Benefits2008


2007


2008


2007


2008


2007Change in projected benefit obligation:Beginning benefit obligation

$
60,401


$
39,768


$
107,097


$
94,587


$
50,756


$
42,191Service cost


3,380



2,687



5,783



5,531



2,923



2,329Interest cost


3,683



2,962



4,222



3,700



3,106



2,629Plan participants contributions










293



293



584



460Actuarial loss/(gain)


(9,804
)


4,737



(7,120
)


3,034



(8,564
)


4,480Plan amendment














3,106







Effect of curtailment/settlement


(2,336
)


(10
)


(3,211
)










Business combination






11,288















Benefits paid to plan participants


(2,344
)


(1,031
)


(6,182
)


(3,126
)


(2,026
)


(1,333
)Changes in foreign currency










14,554



(28
)






Ending projected benefit obligation

$
52,980


$
60,401


$
115,436


$
107,097


$
46,779


$
50,756   57




---



##### Table of Contents



Molex
    Incorporated
  Notes to
    Consolidated Financial
    Statements  (Continued)
  U.S. Pension


Non-U.S. Pension


PostretirementBenefits


Benefits


Medical Benefits2008


2007


2008


2007


2008


2007Change in plan assets:Beginning fair value of plan assets

$
57,311


$
41,916


$
61,019


$
42,977


$



$
Actual return on plan assets


623



5,436



(9,505
)


7,951







Employer contributions


3,250



3,000



12,340



10,343



1,573



1,151Plan participants contributions










293



293



584



460Business combination






7,989















Benefits paid to plan participants


(2,344
)


(1,031
)


(6,182
)


(3,126
)


(2,157
)


(1,611
)Changes in foreign currency










8,498



2,581







Ending fair value of plan assets

$
58,840


$
57,310


$
66,463


$
61,019


$



$
     U.S. Pension

Non-U.S. Pension

PostretirementBenefits

Benefits

Medical Benefits2008

2007

2008

2007

2008

2007Funded Status

$
5,860


$
(3,091
)

$
(48,973
)

$
(46,078
)

$
(46,779
)

$
(50,756
)     U.S. Pension


Non-U.S. Pension


PostretirementBenefits


Benefits


Medical Benefits2008


2007


2008


2007


2008


2007Prepaid expenses

$
7,275


$
595


$
8,406


$
8,110


$



$
Accrued pension and other post retirement benefits


(1,415
)


(3,686
)


(57,379
)


(54,251
)


(46,779
)


(50,756
)Accumulated other comprehensive income


(1,426
)


4,333



20,160



12,328



7,695



16,850Net amount recognized

$
4,434


$
1,242


$
(28,813
)

$
(33,813
)

$
(39,084
)

$
(33,906
)     U.S. Pension


Non-U.S. Pension


PostretirementBenefits


Benefits


Medical Benefits2008


2007


2008


2007


2008


2007Net transition liability

$



$



$
224


$
250


$



$
Net actuarial (gain) loss


(1,447
)


4,308



16,967



9,309



13,750



23,572Net prior service costs


21



25



2,969



2,769



(6,055
)


(6,722
)Defined benefit plans, net

$
(1,426
)

$
4,333


$
20,160


$
12,328


$
7,695


$
16,850    58




---



##### Table of Contents



Molex
    Incorporated
  Notes to
    Consolidated Financial
    Statements  (Continued)
  Assumptions
    U.S. Pension


Non-U.S. Pension


PostretirementBenefits


Benefits


Medical Benefits2008


2007


2008


2007


2008


2007Discount rate


6.9
%


6.2
%


4.0
%


3.8
%


6.9
%


6.2
%Rate of compensation increase


3.7
%


3.7
%


3.4
%


3.5
%






Health care cost trend


















10.0
%


10.0
%Ultimate health care cost trend


















5.0
%


5.0
%Years of ultimate rate


















2013



2012     2008


2007


2006Effect on total service and interest cost:Increase 100 basis points

$
1,219


$
1,287


$
1,476Decrease 100 basis points


(968
)


(1,014
)


(1,211
)Effect on benefit obligation:Increase 100 basis points

$
7,987


$
9,057


$
9,951Decrease 100 basis points


(6,452
)


(7,270
)


(8,164
)     U.S. Pension


Non-U.S. Pension


PostretirementBenefits


Benefits


Medical Benefits2008


2007


2008


2007


2008


2007Discount rate


6.2
%


6.3
%


3.8
%


3.9
%


6.2
%


6.3
%Expected return on plan assets


8.2
%


8.4
%


6.5
%


6.5
%






Rate of compensation increase


3.7
%


3.7
%


3.5
%


3.4
%






Health care cost trend


















10.0
%


10.0
%Ultimate health care cost trend


















5.0
%


5.0
%Years of ultimate rate


















2012



2011    59




---



##### Table of Contents



Molex
    Incorporated
  Notes to
    Consolidated Financial
    Statements  (Continued)
  Net Periodic
    Benefit Cost
    PostretirementU.S. Pension Benefits


Non-U.S. Pension Benefits


Medical Benefits2008


2007


2006


2008


2007


2006


2008


2007


2006Service cost

$
3,380


$
2,687


$
3,239


$
5,783


$
5,531


$
5,946


$
2,923


$
2,329


$
2,566Interest cost


3,683



2,962



2,291



4,222



3,700



3,100



3,106



2,629



2,387Expected return on plan assets


(4,652
)


(3,939
)


(3,070
)


(4,306
)


(2,901
)


(2,098
)










Amortization of prior service cost


4



4



110



232



218







(667
)


(676
)


(71
)Amortization of unrecognized transition obligation














43



40



40











Recognized actuarial losses










716



362



176



741



1,257



1,102



1,039Curtailment (gain)/loss


(2,356
)


(12
)


4



(3,209
)






(45
)


132



278



Net periodic benefit cost

$
59


$
1,702


$
3,290


$
3,127


$
6,764


$
7,684


$
6,751


$
5,662


$
5,921     Plan
    Assets
    2008


2007Non-U.S.





Non-U.S.U.S. Plan


Plan


U.S. Plan


PlanAssets


Assets


Assets


AssetsAsset category:Equity


65
%


64
%


68
%


70
%Bonds


35
%


19
%


32
%


21
%Other






17
%






9
%   Funding
    Expectations
  non-U.S. plans
 60




---



##### Table of Contents



Molex
    Incorporated
  Notes to
    Consolidated Financial
    Statements  (Continued)
  Estimated Future
    Benefit Payments
  non-U.S. pension
  Curtailments
    13.
    Debt      14.
    Leases    OperatingLeasesYear ending June 30:2009

$
13,7742010


7,0652011


4,7322012


3,7402013


2,8802014 and thereafter


7,640Total lease payments

$
39,831    61




---



##### Table of Contents



Molex
    Incorporated
  Notes to
    Consolidated Financial
    Statements  (Continued)
  15.
    Capital
    Stock          Class ACommon Stock


Common Stock


Treasury StockShares


Amount


Shares


Amount


Shares


AmountOutstanding at June 30, 2005


110,814


$
5,541



104,998


$
5,250



28,049


$
568,917Exercise of stock options


483



24



1,584



79



309



8,736Purchase of treasury stock


















6,018



165,323Issuance of stock awards










16



1







Other


















8



243Outstanding at June 30, 2006


111,297


$
5,565



106,598


$
5,330



34,384


$
743,219Exercise of stock options


426



21



1,890



95



705



21,801Purchase of treasury stock


















1,248



34,889Issuance of stock awards










25



1







Other


7



1



49



2







(15
)Outstanding at June 30, 2007


111,730


$
5,587



108,562


$
5,428



36,337


$
799,894Exercise of stock options


457



23



1,210



60



376



9,543Purchase of treasury stock


















7,979



199,584Issuance of stock awards










10



1







Other


8







59



3







Outstanding at June 30, 2008


112,195


$
5,610



109,841


$
5,492



44,692


$
1,009,021  62




---



##### Table of Contents



Molex
    Incorporated
  Notes to
    Consolidated Financial
    Statements  (Continued)
  16.
    Accumulated Other
    Comprehensive Income    2008


2007Foreign currency translation adjustments

$
322,709


$
157,002Non-current deferred tax asset


8,637



12,411Accumulated transition obligation


(224
)


(250
)Accumulated prior service credit


3,064



3,928Accumulated net loss


(29,269
)


(37,189
)Unrealized gains on investments


15,698



5,496Total

$
320,615


$
141,398   17.
    Stock Incentive
    Plans    Stock
    Options
  U.S.-based
   63




---



##### Table of Contents



Molex
    Incorporated
  Notes to
    Consolidated Financial
    Statements  (Continued)
    ExerciseShares


PriceOutstanding at June 30, 2005


10,544


$
18.94Granted


1,989



18.98Exercised


(1,872
)


12.85Forfeited or expired


(241
)


19.72Outstanding at June 30, 2006


10,420


$
20.02Granted


2,264



20.65Exercised


(2,122
)


17.46Forfeited or expired


(343
)


21.93Outstanding at June 30, 2007


10,219


$
20.98Granted


1,728



17.63Exercised


(1,433
)


15.91Forfeited or expired


(1,111
)


27.81Outstanding at June 30, 2008


9,403


$
20.38Exercisable at June 30, 2008


3,988


$
24.04       2008


2007


2006Weighted-average fair value of options granted:At market value of underlying stock

$
6.22


$
9.82


$
8.15At less than market value of underlying stock

$
11.36


$
14.68


$
17.18Assumptions:Dividend yield


1.95
%


1.06
%


0.72
%Expected volatility


27.44
%


28.44
%


28.25
%Risk-free interest rate


3.55
%


4.79
%


4.06
%Expected life of option (years)


4.14



3.94



3.66    64




---



##### Table of Contents



Molex
    Incorporated
  Notes to
    Consolidated Financial
    Statements  (Continued)
  Stock
    Awards
    Fair MarketShares


ValueNonvested shares at June 30, 2005


446


$
24.06Granted


249



24.56Vested


(195
)


20.43Nonvested shares at June 30, 2006


500


$
24.33Granted


271



29.51Vested


(168
)


23.57Forfeited


(62
)


25.05Nonvested shares at June 30, 2007


541


$
27.08Granted


295



22.82Vested


(233
)


26.47Forfeited


(32
)


26.80Nonvested shares at June 30, 2008


571


$
25.14     Directors
    Deferred Compensation Plan
      18.
    Segment and
    Related Information    
    The Connector segment designs and manufactures products for
    high-speed, high-density, high signal-integrity applications as
    well as fine-pitch, low-profile connectors for the consumer and
    commercial markets. 65




---



##### Table of Contents



Molex
    Incorporated
  Notes to
    Consolidated Financial
    Statements  (Continued)
   
    The Transportation segment designs and manufactures products
    that withstand environments such as heat, cold, dust, dirt,
    liquid and vibration for automotive and other transportation
    applications.
    The Custom & Electrical segment designs and
    manufactures integrated and customizable electronic components
    across all industries that provide original, differentiated
    solutions to customer requirements. It also leverages expertise
    in the use of signal, power and interface technology in
    industrial automation and other harsh environment applications.    Trans-


Custom &


CorporateConnector


portation


Electrical


& Other


Total2008:Revenues from external customers

$
1,879,443


$
498,141


$
941,365


$
9,398


$
3,328,347Income (loss) from operations


302,240



15,356



94,076



(93,722
)


317,950Depreciation & amortization


162,601



39,076



35,495



15,172



252,344Capital expenditures


138,558



42,331



22,705



31,032



234,6262007:Revenues from external customers

$
1,885,431


$
472,257


$
892,756


$
15,430


$
3,265,874Income (loss) from operations


354,358



7,476



52,898



(93,182
)


321,550Depreciation & amortization


140,191



38,422



41,197



18,102



237,912Capital expenditures


176,263



66,213



34,100



20,285



296,8612006:Revenues from external customers

$
1,721,459


$
424,740


$
650,332


$
64,758


$
2,861,289Income (loss) from operations


411,329



(4,472
)


29,047



(126,160
)


309,744Depreciation & amortization


137,605



29,764



28,570



18,718



214,657Capital expenditures


206,490



18,442



24,163



27,688



276,783       2008


2007


2006Customer revenue:United States

$
888,941


$
896,625


$
764,074Japan


517,087



484,613



421,603China


735,657



717,735



642,369Net property, plant and equipment:United States

$
296,843


$
313,109


$
293,055Japan


299,447



280,246



276,696China


231,764



188,670



161,717  66




---



##### Table of Contents



Molex
    Incorporated
  Notes to
    Consolidated Financial
    Statements  (Continued)
    Trans-

Custom &

CorporateConnector

portation

Electrical

& Other

Total2008

$
1,293,342


$
413,233


$
500,197


$
164,745


$
2,371,5172007


1,167,163



407,034



454,730



170,788



2,199,715     June 30,


June 30,2008


2007Segment assets

$
2,371,517


$
2,199,715Other current assets


583,838



512,481Other non current assets


644,182



603,912Consolidated total assets

$
3,599,537


$
3,316,108     19.
    Quarterly
    Financial Information (Unaudited)    First


Second


Third


FourthQuarter


Quarter


Quarter


QuarterNet revenue

$
792,610


$
841,560


$
822,285


$
871,892Gross profit


236,150



253,115



254,461



270,509Net income


53,304



59,216



50,306



52,611Basic earnings per share


0.29



0.33



0.28



0.30Diluted earnings per share


0.29



0.33



0.28



0.29     First


Second


Third


FourthQuarter


Quarter


Quarter


QuarterNet revenue

$
829,545


$
837,467


$
807,014


$
791,848Gross profit


269,409



258,509



250,988



237,802Net income


76,501



66,227



65,318



32,722Basic earnings per share


0.42



0.36



0.36



0.18Diluted earnings per share


0.41



0.36



0.35



0.18  67




---



##### Table of Contents



Molex
    Incorporated
  Notes to
    Consolidated Financial
    Statements  (Continued)
    Restructuring


ForeignCharges


Tax CreditsFiscal 2008:First quarter

$
1,476


$
Second quarter


4,716



Third quarter


4,902



6,344Fourth quarter


9,894



10,871Fiscal 2007:Fourth quarter


30,255



  68




---



##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM  The Board of
    Directors and Stockholders of Molex Incorporated
        Employers Accounting for Defined Benefit Pension and
    Other Postretirement Plans Accounting for Uncertainty
    in Income Taxes  an interpretation of FASB Statement
    No. 109
        69




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##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM  The Board of
    Directors and Stockholders of Molex Incorporated
              
    70




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##### Table of Contents



Item 9.
    Changes
    in and Disagreements with Accountants on Accounting and
    Financial Disclosure    Item 9A.
    Controls
    and Procedures  Form 10-K Rule 13a-14 Form 10-K
  Evaluation of
    Disclosure Controls and Procedures
  Form 10-K. Form 10-K,
  Form 10-K. Form 10-Q Form 10-K.
    Managements
    Report on Internal Control Over Financial Reporting
   71




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##### Table of Contents



Rule 13a-15(f).
  Internal
    Control  Integrated Framework
  Changes in
    Internal Control over Financial Reporting
    Inherent
    Limitations on Effectiveness of Controls
    Item 9B.
    Other
    Information   PART III  Item 10.
    Directors,
    Executive Officers and Corporate Governance  Regulation S-K Form 10-K
  Item 11.
    Executive
    Compensation   72




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##### Table of Contents



Item 12.
    Security
    Ownership of Certain Beneficial Owners and Management and
    Related Stockholder Matters    Item 13.
    Certain
    Relationships and Related Transactions, and Director
    Independence    Item 14.
    Principal
    Accountant Fees and Services   PART IV  Item 15.
    Exhibits
    and Financial Statement Schedules          Form 10-K.
 73




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##### Table of Contents



Molex
    IncorporatedSchedule II  Valuation and
    Qualifying Accounts
    For the Years Ended June 30, 2008, 2007, and 2006
   Balance at








Other/


Balance atBeginning of


Charges to





Currency


End ofPeriod


Income


Write-Offs


Translation


PeriodReceivable Reserves:Year ended 2008

$
31,064


$
69,020


$
(62,520
)

$
2,679


$
40,243Year ended 2007

$
26,513


$
71,245


$
(67,422
)

$
728


$
31,064Year ended 2006

$
20,293


$
69,187


$
(63,524
)

$
557


$
26,513Inventory Reserves:Year ended 2008:Slow and Excess

$
39,956


$
15,453


$
(16,946
)

$
932


$
39,395Blocked Stock


835



251







(23
)


1,063Other


1,936



237







171



2,344Total

$
42,727


$
15,941


$
(16,946
)

$
1,080


$
42,802Year ended 2007:Slow and Excess

$
30,309


$
23,607


$
(20,983
)

$
7,023


$
39,956Blocked Stock


936



94







(195
)


835Other


2,689



(299
)






(454
)


1,936Total

$
33,934


$
23,402


$
(20,983
)

$
6,374


$
42,727Year ended 2006:Slow and Excess

$
29,511


$
18,014


$
(17,959
)

$
743


$
30,309Blocked Stock


1,626



(690
)










936Other


3,061



(372
)










2,689Total

$
34,198


$
16,952


$
(17,959
)

$
743


$
33,934Deferred tax asset valuation allowance:Year ended 2008

$
39,366


$



$
(1,077
)

$



$
38,289Year ended 2007

$
33,920


$
1,308


$



$
4,138


$
39,366Year ended 2006

$
28,700


$
5,345


$
(125
)





$
33,920  74




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##### Table of Contents



Molex
    Incorporated



Index of
    Exhibits  ExhibitNumber

Description

Location3
.1

Certificate of Incorporation (as amended and restated)

Incorporated by reference to Exhibit 3.1 to our annual report on
    Form 10-K for the year ended June 30, 20003
.2

By-laws (as amended and restated)

Incorporated by reference to Exhibit 3.1(ii) to our Form 8-K
    filed on November 19, 20074


Instruments defining rights of security holders

See Exhibit 3.110
.1

Foreign Service Employees Policies and Procedures

Incorporated by reference to Exhibit 10.15 to our quarterly
    report on Form 10-Q for the period ended March 31, 200510
.2

Employment Offer Letter to David D. Johnson

Incorporated by reference to Exhibit 10.18 to our quarterly
    report on Form 10-Q for the period ended March 31, 200510
.3

Deferred Compensation Agreement between Molex and Frederick A.
    Krehbiel

Incorporated by reference to Exhibit 10.12 to our quarterly
    report on Form 10-Q for the period ended March 31, 200510
.4

Deferred Compensation Agreement between Molex and John H.
    Krehbiel, Jr.

Incorporated by reference to Exhibit 10.13 to our quarterly
    report on Form 10-Q for the period ended March 31, 200510
.5

2005 Molex Supplemental Executive Retirement Plan

Filed herewith10
.6

Molex Executive Deferred Compensation Plan

Filed herewith10
.7

Summary of Non-Employee Director Compensation

Filed herewith10
.8

Molex Outside Directors Deferred Compensation Plan

Incorporated by reference to Exhibit 99.1 to our Form 8-K
    filed on August 1, 200610
.9

2000 Molex Long-Term Stock Plan, as amended and restated

Incorporated by reference to Appendix V to our 2007 Proxy
    Statement10
.10

Form of Stock Option Agreement under the 2000 Molex Long-Term
    Stock Plan

Filed herewith10
.11

Form of Restricted Stock Agreement under the 2000 Molex
    Long-Term Stock Plan

Filed herewith10
.12

2005 Molex Incentive Stock Option Plan, as amended and restated

Incorporated by reference to Appendix VI to our 2007 Proxy
    Statement10
.13

Form of Stock Option Agreement under the 2005 Molex Incentive
    Stock Option Plan

Incorporated by reference to Exhibit 10.12 to our Form 10-K for
    the period ended June 30, 200721


Subsidiaries of the Company

Filed herewith23


Consent of Ernst & Young, LLP

Filed herewith31
.1

Certification by the Chief Executive Officer Pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002

Filed herewith31
.2

Certification by the Chief Financial Officer Pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002

Filed herewith32
.1

Certification by the Chief Executive Officer Pursuant to
    18 U.S.C. Section 1350, as adopted pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002

Furnished herewith32
.2

Certification by the Chief Financial Officer Pursuant to
    18 U.S.C. Section 1350, as adopted pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002

Furnished herewith    75




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##### Table of Contents



Signatures    
  By:
    /s/  DAVID
    D. JOHNSON          August 6, 2008

Co-Chairman of the Board

/s/  FREDERICK
    A. KREHBIELFrederick
    A. KrehbielAugust 6, 2008.

Co-Chairman of the Board

/s/  JOHN
    H. KREHBIEL, JR.John
    H. Krehbiel, JrAugust 6, 2008

Vice Chairman of the Board and Chief Executive Officer
    (Principal Executive Officer)

/s/  MARTIN
    P. SLARKMartin
    P. SlarkAugust 6, 2008

Executive Vice President, Treasurer and Chief Financial
    Officer
    (Principal Financial Officer)

/s/  DAVID
    D. JOHNSONDavid
    D. JohnsonAugust 6, 2008

Vice President, Corporate Controller and Chief Accounting
    Officer
    (Principal Accounting Officer)

/s/  K.
    TRAVIS GEORGEK.
    Travis GeorgeAugust 6, 2008

Director

/s/  FRED
    L. KREHBIELFred
    L. KrehbielAugust 6, 2008

Director

/s/  MICHAEL
    J. BIRCKMichael
    J. BirckAugust 6, 2008

Director

/s/  MICHELLE
    L. COLLINSMichelle
    L. CollinsAugust 6, 2008

Director

/s/  EDGAR
    D. JANNOTTAEdgar
    D. Jannotta 76




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##### Table of Contents



August 6, 2008

Director

/s/  KAZUMASA
    KUSAKAKazumasa
    KusakaAugust 6, 2008

Director

/s/  DAVID
    L. LANDSITTELDavid
    L. LandsittelAugust 6, 2008

Director

/s/  JOE
    W. LAYMONJoe
    W. LaymonAugust 6, 2008

Director

/s/  DONALD
    G. LUBINDonald
    G. LubinAugust 6, 2008

Director

/s/  JAMES
    S. METCALFJames
    S. MetcalfAugust 6, 2008

Director

/s/  ROBERT
    J. POTTERRobert
    J. Potter  77