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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, 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, 2007
 Commission File Number 0-7491
 
 MOLEX INCORPORATED
  Delaware
(State or other jurisdiction of 
incorporation or organization)
    
    36-2369491
(I.R.S. Employer
Identification No.)
 2222 Wellington Court, Lisle, Illinois 60532
 
 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
Class A Common Stock, par value $0.05
    
    The Nasdaq Stock Market, Inc.
The Nasdaq Stock Market, Inc.
 SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: None
 
 þ o
 o þ
 þ o
 þ
  þ o o
 o þ
  Common Stock
    
    
    99,433,450Class A Common Stock
    
    
    84,569,833Class B Common Stock
    
    
    94,255
  DOCUMENTS INCORPORATED BY REFERENCE
   1




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TABLE OF CONTENTS
 PagePart IItem 1. Business
    
    
    3Item 1A. Risk Factors
    
    
    13Item 1B. Unresolved Staff Comments
    
    
    18Item 2. Properties
    
    
    18Item 3. Legal Proceedings
    
    
    19Item 4. Submission of Matters to a Vote of Security Holders
    
    
    19Part IIItem 5. Market for the Registrants Common Equity, Related Stockholder
Matters and Issuer Purchases of Equity Securities
    
    
    19Item 6. Selected Financial Data
    
    
    22Item 7. Managements Discussion and Analysis of Financial Condition and
Results of Operations
    
    
    23Item 7A. Quantitative and Qualitative Disclosures About Market Risk
    
    
    38Item 8. Financial Statements and Supplementary Data
    
    
    39Item 9. Changes in and Disagreements with Accountants on Accounting
Financial Disclosure
    
    
    66Item 9A. Controls and Procedures
    
    
    66Item 9B. Other Information
    
    
    67Part IIIItem 10. Directors, Executive Officers and Corporate Governance
    
    
    68Item 11. Executive Compensation
    
    
    68Item 12. Security Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters
    
    
    68Item 13. Certain Relationships and Related Transactions, and Director Compensation
    
    
    68Item 14. Principal Accountant Fees and Services
    
    
    68Part IVItem 15. Exhibits and Financial Statement Schedules
    
    
    68Schedule II  Valuation and Qualifying Accounts
    
    
    69Index to Exhibits
    
    
    70Signatures
    
    
    72Form of Stock Option AgreementForm of Equity Award AgreementSubsidiaries of the CompanyConsent of Ernst & Young, LLP302 Certification of Chief Executive Officer302 Certification of Chief Financial Officer906 Certification of Chief Executive Officer906 Certification of Chief Financial Officer
  Molex Web Site
    3




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PART I
 
 Item 1. Business
    The Connector Industry
    
    
    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.
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Markets and Products
  Percentage of Fiscal 2007
    
    Primary End Use ProductsMarkets
    
    Net Revenue
    
    Supported by MolexTelecommunications
    
    26%
    
    Mobile phones and
devices, networking
equipment, switches and
transmission equipmentData Products
    
    21%
    
    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
    
    15%
    
    Factory automation,
robotics, automated test
equipment, vision
systems and diagnostic
equipmentOther
    
    2%
    
    Electronic and
electrical devices for a
variety of markets
 Telecommunications.
 TM
 Data Products.
    5




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Automotive.
 
 Consumer.
  TM
 Industrial.
   Other.
 6




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##### Table of Contents



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 more than 60 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 2007, we generated
approximately 27% 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 14% of net revenue in capital
expenditures and research and development activities in fiscal 2007.
  Competition
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Customers, Demand Creation and Sales Channels
    
    
    51% of net revenue originated in Asia, with 35% from the Asia Pacific South region
(China, Hong Kong, Indonesia, India, Malaysia, Philippines, Singapore, Taiwan and
Korea) and 16% from the Asia Pacific North region (Japan and Thailand). Approximately
22% and 15% of net revenue in fiscal 2007 was derived from
operations in China and Japan, respectively.
    
    29% of net revenue originated in the Americas (United States, Canada, Mexico and
South America).
    
    20% of net revenue originated in Europe.
     8




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Research and Development
     Manufacturing
     Raw Materials
 9




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Backlog and Seasonality
   Employees
   Acquisitions and Investments
   Intellectual Property
   10




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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).
    
    
    66
    
    
    1965(b)John H. Krehbiel, Jr.(a)
    
    Co-Chairman (1999-); Co-Chief Executive
Officer (1999-2001).
    
    
    70
    
    
    1959(b)Martin P. Slark
    
    Vice-Chairman and Chief Executive Officer (2005-); President and Chief 
Operating Officer (2001-2005); Executive Vice President (1999-2001).
    
    
    52
    
    
    
    1976Liam McCarthy
    
    President and Chief Operating Officer (2005-);
Regional Vice President of Operations, Europe (2000-
    
    
    51
    
    
    
    1976
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Positions Held with Registrant
    
    
    
    
    
    YearName
    
    During the Last Five Years
    
    Age
    
    Employed2005); Interim General Manager of Molex Ireland Ltd.
(2002-2004).
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Positions Held with Registrant
    
    
    
    
    
    YearName
    
    During the Last Five Yearst
    
    Age
    
    EmployedDavid D. Johnson
    
    Executive Vice President, Treasurer and Chief
Financial Officer (2005-); Vice President, Treasurer and
Chief Financial Officer, Sypris Solutions, Inc. (1998-2005).
    
    
    51
    
    
    
    2005Graham 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).
    
    
    53
    
    
    
    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).
    
    
    63
    
    
    
    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).
    
    
    60
    
    
    
    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).
    
    
    53
    
    
    
    1982Ronald L. Schubel
    
    Executive Vice President (2001-); Corporate Vice
President (1982-2001); Regional President, Americas
(1998-2005).
    
    
    63
    
    
    
    1981J. 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).
    
    
    45
    
    
    
    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 ).
    
    
    52
    
    
    
    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. 13




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Code of Business Conduct and Ethics
   14




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Item 1A. Risk Factors
 Forward-looking Statements
   Risk Factors
  We are dependent on the success of our customers.
  We face rising costs of commodity materials.
  15




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We face intense competition in our markets.
  We are dependent on new products.
   We face manufacturing challenges.
    16




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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.
  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;
 17




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
    
    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.
   We may find that our products have quality issues.
  We face risks in integrating acquisitions.
  
    
    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.
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We face risks arising from reorganizations of our operations.
   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.
  19




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We could suffer significant business interruptions.
  
 Item 1B. Unresolved Staff Comments
  
 Item 2. Properties
    
    
    Americas: United States, Nogales, Guadalajara and Juarez
    
    Asia Pacific North: Japan and Thailand
    
    Asia Pacific South: China, Korea, India, Malaysia, Singapore and Taiwan
    
    Europe: France, Germany, Italy, Poland, Slovakia and Ireland
 20




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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
    2007
    
    2006
    
    2005Low - High
    
    Low - High
    
    Low - HighCommon Stock
    
    1st
    
    $
    29.66
    
    
    $
    39.27
    
    
    $
    25.34
    
    
    $
    29.20
    
    
    $
    27.55
    
    
    $
    31.392nd
    
    
    30.91
    
    
    
    39.49
    
    
    
    24.07
    
    
    
    28.02
    
    
    
    27.57
    
    
    
    31.313rd
    
    
    28.15
    
    
    
    31.70
    
    
    
    25.89
    
    
    
    33.39
    
    
    
    24.62
    
    
    
    29.134th
    
    
    28.01
    
    
    
    31.53
    
    
    
    32.48
    
    
    
    39.36
    
    
    
    24.47
    
    
    
    28.15
 2007
    
    2006
    
    2005Low  High
    
    Low  High
    
    Low  HighClass A Common Stock
    
    1st
    
    $
    25.57
    
    
    $
    33.12
    
    
    $
    23.54
    
    
    $
    26.50
    
    
    $
    23.55
    
    
    $
    26.822nd
    
    
    27.22
    
    
    
    33.27
    
    
    
    22.82
    
    
    
    27.15
    
    
    
    24.33
    
    
    
    27.463rd
    
    
    24.72
    
    
    
    27.78
    
    
    
    24.33
    
    
    
    29.87
    
    
    
    22.48
    
    
    
    25.994th
    
    
    24.66
    
    
    
    28.20
    
    
    
    27.94
    
    
    
    33.47
    
    
    
    21.75
    
    
    
    25.08
  21




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Class ACommon Stock
    
    
    Common Stock2007
    
    
    2006
    
    
    2007
    
    
    2006Quarter ended:September 30
    
    $
    0.0750
    
    
    $
    0.0500
    
    
    $
    0.0750
    
    
    $
    0.0500December 31
    
    
    0.0750
    
    
    
    0.0500
    
    
    
    0.0750
    
    
    
    0.0500March 31
    
    
    0.0750
    
    
    
    0.0500
    
    
    
    0.0750
    
    
    
    0.0500June 30
    
    
    0.0750
    
    
    
    0.0750
    
    
    
    0.0750
    
    
    
    0.0750Total
    
    $
    0.3000
    
    
    $
    0.2250
    
    
    $
    0.3000
    
    
    $
    0.2250
  Total Numberof SharesPurchased AsTotal Number
    
    
    
    
    
    Part of Publiclyof Shares
    
    Average Price
    
    AnnouncedPurchased
    
    Paid per Share
    
    PlanCommon Stock:April 1 to April 30
    
    
    57
    
    
    $
    30.56
    
    
    
    May 1 to May 31
    
    
    130
    
    
    $
    30.52
    
    
    
    130June 1 to June 30
    
    
    
    
    
    $
    
    
    
    
    Total
    
    
    187
    
    
    $
    30.53
    
    
    
    130
 Total Numberof SharesPurchased AsTotal Number
    
    
    
    
    
    Part of Publiclyof Shares
    
    Average Price
    
    AnnouncedPurchased
    
    Paid per Share
    
    PlanClass A Common Stock:April 1 to April 30
    
    
    272
    
    
    $
    25.28
    
    
    
    170May 1 to May 31
    
    
    325
    
    
    $
    27.10
    
    
    
    245June 1 to June 30
    
    
    10
    
    
    $
    27.70
    
    
    
    Total
    
    
    607
    
    
    $
    26.29
    
    
    
    415
    Performance Graph
 22




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Comparison of Five-Year Cumulative Total Return
(Value of Investment of $100 on June 30, 2002)
 
 06/30/02
    
    
    06/30/03
    
    
    06/30/04
    
    
    06/30/05
    
    
    06/30/06
    
    
    06/30/07Molex Incorporated
    
    
    $
    100.00
    
    
    
    $
    80.89
    
    
    
    $
    96.39
    
    
    
    $
    78.67
    
    
    
    $
    102.19
    
    
    
    $
    92.22Molex Incorporated Class A
    
    
    
    100.00
    
    
    
    
    84.29
    
    
    
    
    100.31
    
    
    
    
    86.87
    
    
    
    
    107.19
    
    
    
    
    100.13S&P 500
    
    
    
    100.00
    
    
    
    
    100.25
    
    
    
    
    119.41
    
    
    
    
    126.96
    
    
    
    
    137.92
    
    
    
    
    166.32Peer Group
    
    
    
    100.00
    
    
    
    
    88.64
    
    
    
    
    126.85
    
    
    
    
    105.82
    
    
    
    
    124.77
    
    
    
    
    138.14
  23




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Item 6. Selected Financial Data
 Molex Incorporated
Five-Year Financial Highlights Summary
 2007
    
    2006
    
    2005
    
    2004
    
    2003Operations:Net revenue
    
    $
    3,265,874
    
    
    $
    2,861,289
    
    
    $
    2,554,458
    
    
    $
    2,249,018
    
    
    $
    1,839,761Gross profit
    
    
    1,016,708
    
    
    
    942,630
    
    
    
    832,662
    
    
    
    732,832
    
    
    
    571,982Income from operations
    
    
    321,550
    
    
    
    309,744
    
    
    
    203,264
    
    
    
    213,462
    
    
    
    94,119Income before income taxes
    
    
    338,257
    
    
    
    327,884
    
    
    
    223,201
    
    
    
    231,757
    
    
    
    102,052Net income (1)
    
    
    240,768
    
    
    
    236,091
    
    
    
    150,116
    
    
    
    168,096
    
    
    
    83,990Earnings per share:Basic
    
    
    1.31
    
    
    
    1.27
    
    
    
    0.80
    
    
    
    0.88
    
    
    
    0.44Diluted
    
    
    1.30
    
    
    
    1.26
    
    
    
    0.79
    
    
    
    0.87
    
    
    
    0.43Net income percent
of net revenue
    
    
    7.4
    %
    
    
    8.3
    %
    
    
    5.9
    %
    
    
    7.5
    %
    
    
    4.6
    %Capital expenditures
    
    $
    296,861
    
    
    $
    276,783
    
    
    $
    230,895
    
    
    $
    189,724
    
    
    $
    171,193Return on invested capital (2)
    
    
    9.0
    %
    
    
    10.3
    %
    
    
    6.7
    %
    
    
    8.1
    %
    
    
    4.3
    %Financial Position:Current assets
    
    
    1,590,827
    
    
    
    1,548,233
    
    
    
    1,374,063
    
    
    
    1,165,508
    
    
    
    960,761Current liabilities
    
    
    530,951
    
    
    
    594,812
    
    
    
    469,504
    
    
    
    424,766
    
    
    
    349,516Working capital (3)
    
    
    1,059,876
    
    
    
    953,421
    
    
    
    904,559
    
    
    
    740,742
    
    
    
    611,245Current ratio (4)
    
    
    3.0
    
    
    
    2.6
    
    
    
    2.9
    
    
    
    2.7
    
    
    
    2.7Property, plant and
equipment, net
    
    
    1,121,369
    
    
    
    1,025,852
    
    
    
    984,237
    
    
    
    1,023,020
    
    
    
    1,007,948Total assets
    
    
    3,316,108
    
    
    
    2,974,420
    
    
    
    2,730,162
    
    
    
    2,575,286
    
    
    
    2,333,854Long-term debt and capital leases
    
    
    130,779
    
    
    
    8,815
    
    
    
    9,975
    
    
    
    14,039
    
    
    
    16,868Stockholders equity
    
    
    2,523,031
    
    
    
    2,281,869
    
    
    
    2,170,754
    
    
    
    2,070,422
    
    
    
    1,905,667Dividends declared per share
    
    
    0.30
    
    
    
    0.225
    
    
    
    0.15
    
    
    
    0.10
    
    
    
    0.10Average common
shares outstanding:Basic
    
    
    183,961
    
    
    
    185,521
    
    
    
    188,646
    
    
    
    190,207
    
    
    
    191,873Diluted
    
    
    185,565
    
    
    
    187,416
    
    
    
    190,572
    
    
    
    192,186
    
    
    
    193,229
 
 (1)
    
    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). Fiscal 2003
results include a restructuring charge of $35.0 million ($24.8 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. 24




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Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations
  Overview
    % of Net Revenue2007
    
    2006
    
    2005Telecommunications
    
    
    26
    %
    
    
    30
    %
    
    
    27
    %Data Products
    
    
    21
    
    
    
    22
    
    
    
    24Automotive
    
    
    18
    
    
    
    18
    
    
    
    19Consumer
    
    
    18
    
    
    
    19
    
    
    
    18Industrial
    
    
    15
    
    
    
    9
    
    
    
    9Other
    
    
    2
    
    
    
    2
    
    
    
    3Total
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
   25




---



##### Table of Contents



Financial Highlights
   Critical Accounting Estimates
  .
 Revenue Recognition
   26




---



##### Table of Contents



Income Taxes
     Inventory
  Pension Plans
   27




---



##### 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
    
    $
    (5,108
    )
    
    $
    (8,333
    )
    
    $
    (338
    )
    
    $
    (103
    )Decrease 50 basis points
    
    
    5,580
    
    
    
    9,444
    
    
    
    329
    
    
    
    175Expected rate of return change:Increase 100 basis points
    
    
    N/A
    
    
    
    N/A
    
    
    
    (496
    )
    
    
    (536
    )Decrease 100 basis points
    
    
    N/A
    
    
    
    N/A
    
    
    
    443
    
    
    
    420
 Other Postretirement Benefits
  2007
    
    2006
    
    2005Effect on total annual service and interest cost:Increase 100 basis points
    
    $
    1,287
    
    
    $
    1,476
    
    
    $
    1,073Decrease 100 basis points
    
    
    (1,014
    )
    
    
    (1,211
    )
    
    
    (908
    )Effect on APBO:Increase 100 basis points
    
    $
    9,057
    
    
    $
    9,951
    
    
    $
    8,655Decrease 100 basis points
    
    
    (7,270
    )
    
    
    (8,164
    )
    
    
    (7,325
    )
 Goodwill
     Restructuring Costs and Asset Impairments
  28




---



##### Table of Contents



Impairment of Long-Lived Assets
  New Accounting Pronouncements
   Accounting for Uncertainty in Income
Taxes
 Results of Operations
   29




---



##### Table of Contents



Percentage
    
    
    
    
    
    
    Percentage
    
    
    
    
    
    
    Percentage2007
    
    
    of Revenue
    
    
    2006
    
    
    of Revenue
    
    
    2005
    
    
    of RevenueNet revenue
    
    $
    3,265,874
    
    
    
    100.0
    %
    
    $
    2,861,289
    
    
    
    100.0
    %
    
    $
    2,554,458
    
    
    
    100.0
    %Cost of Sales
    
    
    2,249,166
    
    
    
    68.9
    %
    
    
    1,918,659
    
    
    
    67.1
    %
    
    
    1,721,796
    
    
    
    67.4
    %Gross Profit
    
    
    1,016,708
    
    
    
    31.1
    %
    
    
    942,630
    
    
    
    32.9
    %
    
    
    832,662
    
    
    
    32.6
    %Selling, general & administrative
    
    
    658,289
    
    
    
    20.1
    %
    
    
    606,532
    
    
    
    21.1
    %
    
    
    576,354
    
    
    
    22.6
    %Restructuring costs and
asset impairments
    
    
    36,869
    
    
    
    1.1
    %
    
    
    26,354
    
    
    
    0.9
    %
    
    
    30,168
    
    
    
    1.2
    %Goodwill impairment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    22,876
    
    
    
    0.9
    %Income from operations
    
    
    321,550
    
    
    
    9.9
    %
    
    
    309,744
    
    
    
    10.8
    %
    
    
    203,264
    
    
    
    7.9
    %Other income, net
    
    
    16,707
    
    
    
    0.5
    %
    
    
    18,140
    
    
    
    0.7
    %
    
    
    19,937
    
    
    
    0.8
    %Income before income taxes
    
    
    338,257
    
    
    
    10.4
    %
    
    
    327,884
    
    
    
    11.5
    %
    
    
    223,201
    
    
    
    8.7
    %Income taxes
    
    
    97,489
    
    
    
    3.0
    %
    
    
    91,793
    
    
    
    3.2
    %
    
    
    73,085
    
    
    
    2.8
    %Net income
    
    $
    240,768
    
    
    
    7.4
    %
    
    $
    236,091
    
    
    
    8.3
    %
    
    $
    150,116
    
    
    
    5.9
    %
 Net Revenue
  2007
    
    2006
    
    2005Telecommunications
    
    
    3
    %
    
    
    25
    %
    
    
    33
    %Data Products
    
    
    6
    
    
    
    3
    
    
    
    5Automotive
    
    
    11
    
    
    
    6
    
    
    
    27Consumer
    
    
    9
    
    
    
    19
    
    
    
    (3
    )Industrial
    
    
    100
    
    
    
    12
    
    
    
    2
    30




---



##### Table of Contents



2007
    
    
    2006
    
    
    2005Change in net revenue due to:Organic net revenue growth
    
    $
    141,887
    
    
    $
    337,621
    
    
    $
    233,297Currency translation
    
    
    60,219
    
    
    
    (30,790
    )
    
    
    72,143Woodhead acquisition
    
    
    202,479
    
    
    
    
    
    
    
    Total
    
    $
    404,585
    
    
    $
    306,831
    
    
    $
    305,440Organic net revenue growth percentage
    
    
    5.0
    %
    
    
    13.2
    %
    
    
    10.4
    %
    Percentage
    
    
    
    
    
    
    Percentage
    
    
    
    
    
    
    Percentage(in thousands)
    
    2007
    
    
    of Revenue
    
    
    2006
    
    
    of Revenue
    
    
    2005
    
    
    of RevenueAmericas
    
    $
    783,464
    
    
    
    24.0
    %
    
    $
    793,296
    
    
    
    27.7
    %
    
    $
    701,470
    
    
    
    27.5
    %Asia Pacific North
    
    
    510,311
    
    
    
    15.6
    %
    
    
    450,860
    
    
    
    15.8
    %
    
    
    461,873
    
    
    
    18.0
    %Asia Pacific South
    
    
    1,128,034
    
    
    
    34.5
    %
    
    
    1,036,892
    
    
    
    36.2
    %
    
    
    835,368
    
    
    
    32.7
    %Europe
    
    
    556,096
    
    
    
    17.0
    %
    
    
    511,375
    
    
    
    17.9
    %
    
    
    505,953
    
    
    
    19.8
    %Corporate and other
    
    
    287,969
    
    
    
    8.9
    %
    
    
    68,866
    
    
    
    2.4
    %
    
    
    49,794
    
    
    
    2.0
    %Total
    
    $
    3,265,874
    
    
    
    100.0
    %
    
    $
    2,861,289
    
    
    
    100.0
    %
    
    $
    2,554,458
    
    
    
    100.0
    %
  31




---



##### Table of Contents



2007
    
    2006
    
    2005Americas
    
    
    25
    %
    
    
    25
    %
    
    
    22
    %Asia Pacific North
    
    
    30
    
    
    
    23
    
    
    
    35Asia Pacific South
    
    
    31
    
    
    
    33
    
    
    
    36Europe
    
    
    24
    
    
    
    27
    
    
    
    27Total
    
    
    27
    %
    
    
    28
    %
    
    
    30
    %
 Americas Region North and South America
  2007
    
    
    2006
    
    
    2005Change in revenue due to:Organic net revenue growth
    
    $
    (10,746
    )
    
    $
    82,322
    
    
    $
    13,011Currency translation
    
    
    914
    
    
    
    9,504
    
    
    
    2,330Total
    
    $
    (9,832
    )
    
    $
    91,826
    
    
    $
    15,341Organic net revenue growth percentage
    
    
    (1.4
    )%
    
    
    11.7
    %
    
    
    1.9
    %
   Asia Pacific North Region  Japan and Thailand
  32




---



##### Table of Contents



2007
    
    
    2006
    
    
    2005Change in revenue due to:Organic net revenue growth
    
    $
    68,841
    
    
    $
    12,652
    
    
    $
    (11,973
    )Currency translation
    
    
    (9,390
    )
    
    
    (23,665
    )
    
    
    24,282Total
    
    $
    59,451
    
    
    $
    (11,013
    )
    
    $
    12,309Organic net revenue growth percentage
    
    
    15.3
    %
    
    
    2.7
    %
    
    
    (2.7
    )%
     Asia Pacific South Region  Singapore, Malaysia, China, Korea, Taiwan and India
  2007
    
    
    2006
    
    
    2005Change in revenue due to:Organic net revenue growth
    
    $
    65,071
    
    
    $
    192,370
    
    
    $
    152,160Currency translation
    
    
    26,071
    
    
    
    9,154
    
    
    
    8,098Total
    
    $
    91,142
    
    
    $
    201,524
    
    
    $
    160,258Organic net revenue growth percentage
    
    
    6.3
    %
    
    
    23.0
    %
    
    
    22.5
    %
   33




---



##### Table of Contents



European Region
  2007
    
    
    2006
    
    
    2005Change in revenue due to:Organic net revenue growth
    
    $
    5,458
    
    
    $
    30,958
    
    
    $
    85,755Currency translation
    
    
    39,263
    
    
    
    (25,536
    )
    
    
    34,551Total
    
    $
    44,721
    
    
    $
    5,422
    
    
    $
    120,306Organic net revenue growth percentage
    
    
    1.1
    %
    
    
    6.1
    %
    
    
    22.2
    %
    Gross Profit
  2007
    
    2006
    
    2005Gross profit
    
    $
    1,016,708
    
    
    $
    942,630
    
    
    $
    832,662Gross margin
    
    
    31.1
    %
    
    
    32.9
    %
    
    
    32.6
    %
  2007
    
    2006Price erosion
    
    $
    (131,435
    )
    
    $
    (78,962
    )Higher commodity costs (1)
    
    
    (58,536
    )
    
    
    (42,124
    )Currency translation
    
    
    12,595
    
    
    
    (22,260
    )Currency transaction
    
    
    18,166
    
    
    
    31,328
 
 (1)
    
    Commodity costs are primarily related to metal alloys (primarily copper), gold and plastic
resins. 34




---



##### Table of Contents



Operating Expenses
  2007
    
    2006
    
    2005Selling, general & administrative
    
    $
    658,289
    
    
    $
    606,532
    
    
    $
    576,354Selling, general & administrative as a percentage
of revenue
    
    
    20.1
    %
    
    
    21.1
    %
    
    
    22.6
    %Restructuring costs and
asset impairments
    
    
    36,869
    
    
    
    26,354
    
    
    
    30,168
      35




---



##### Table of Contents



Effective Tax Rate
  2007
    
    2006
    
    2005Effective tax rate
    
    
    28.8
    %
    
    
    28.0
    %
    
    
    32.7
    %
  Backlog
  2007
    
    2006
    
    2005Backlog
    
    $
    332,479
    
    
    $
    369,966
    
    
    $
    259,472
  36




---



##### Table of Contents



Non-GAAP Financial Measures
   Financial Condition and Liquidity
   37




---



##### Table of Contents



Cash Flows
  2007
    
    
    2006
    
    
    2005Cash provided from operating activities
    
    $
    451,434
    
    
    $
    443,856
    
    
    $
    430,835Cash used for investing activities
    
    
    (446,129
    )
    
    
    (240,779
    )
    
    
    (286,232
    )Cash provided by (used for) financing activities
    
    
    28,529
    
    
    
    (189,814
    )
    
    
    (75,689
    )Effect of exchange rate changes on cash
    
    
    11,712
    
    
    
    9,796
    
    
    
    6,411Net increase in cash and cash equivalents
    
    $
    45,546
    
    
    $
    23,059
    
    
    $
    75,325
 Operating Activities
   Investing Activities
   Financing Activities
    38




---



##### Table of Contents



Contractual Obligations and Commercial Commitments
  Less Than
    
    
    1-3
    
    
    3-5
    
    
    More ThanTotal
    
    
    1 Year
    
    
    Years
    
    
    Years
    
    
    5 YearsOperating lease obligations
    
    $
    36,014
    
    
    $
    13,870
    
    
    $
    9,616
    
    
    $
    5,972
    
    
    $
    6,556Capital lease obligations
    
    
    5,954
    
    
    
    2,930
    
    
    
    2,910
    
    
    
    112
    
    
    
    2Other long-term liabilities
    
    
    14,663
    
    
    
    2,983
    
    
    
    2,169
    
    
    
    1,059
    
    
    
    8,452Debt obligations
    
    
    129,046
    
    
    
    1,280
    
    
    
    123,929
    
    
    
    3,633
    
    
    
    204Total (1)
    
    $
    185,677
    
    
    $
    21,063
    
    
    $
    138,624
    
    
    $
    10,776
    
    
    $
    15,214
 
 (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.   Off-Balance Sheet Arrangements
   39




---



##### Table of Contents



Item 7A  Quantitative and Qualitative Disclosures About Market Risk
          40




---



##### Table of Contents



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
    
    
    64Report of Independent Registered Public Accounting Firm on Internal Control
Over Financial Reporting
    
    
    65
 41




---



##### Table of Contents



Molex Incorporated
 
 Consolidated Balance Sheets
 June 30,2007
    
    
    2006ASSETSCurrent assets:Cash and cash equivalents
    
    $
    378,361
    
    
    $
    332,815Marketable securities
    
    
    82,549
    
    
    
    152,728Accounts receivable, less allowances
of $31,064 in 2007 and $26,513 in 2006
    
    
    685,666
    
    
    
    660,665Inventories
    
    
    392,680
    
    
    
    347,312Deferred income taxes
    
    
    16,171
    
    
    
    19,054Prepaid expenses
    
    
    35,400
    
    
    
    35,659Total current assets
    
    
    1,590,827
    
    
    
    1,548,233Property, plant and equipment, net
    
    
    1,121,369
    
    
    
    1,025,852Goodwill
    
    
    334,791
    
    
    
    149,458Non-current deferred income taxes
    
    
    103,626
    
    
    
    130,471Other assets
    
    
    165,495
    
    
    
    120,406Total assets
    
    $
    3,316,108
    
    
    $
    2,974,420LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Short-term loans
    
    $
    1,537
    
    
    $
    968Accounts payable
    
    
    279,847
    
    
    
    305,876Accrued expenses:Salaries, commissions and bonuses
    
    
    66,532
    
    
    
    92,730Other
    
    
    121,358
    
    
    
    99,004Income taxes payable
    
    
    61,677
    
    
    
    96,234Total current liabilities
    
    
    530,951
    
    
    
    594,812Other non-current liabilities
    
    
    25,612
    
    
    
    15,591Accrued pension and other postretirement benefits
    
    
    108,693
    
    
    
    75,055Long-term debt
    
    
    127,821
    
    
    
    7,093Total liabilities
    
    
    793,077
    
    
    
    692,551Commitments and contingenciesStockholders equity:Common Stock, $0.05 par value; 200,000 shares authorized;
111,730 shares issued at 2007 and 111,297 shares issued at 2006
    
    
    5,587
    
    
    
    5,565Class A Common Stock, $0.05 par value; 200,000 shares authorized;
108,562 shares issued at 2007 and 106,598 shares issued at 2006
    
    
    5,428
    
    
    
    5,330Class B Common Stock, $0.05 par value; 146 shares authorized;
94 shares issued at 2007 and 2006
    
    
    5
    
    
    
    5Paid-in capital
    
    
    520,037
    
    
    
    442,586Retained earnings
    
    
    2,650,470
    
    
    
    2,464,889Treasury stock (Common Stock, 12,297 shares at 2007 and 11,887
shares at 2006; Class A Common Stock, 24,040 shares at 2007
and 22,497 shares at 2006), at cost
    
    
    (799,894
    )
    
    
    (743,219
    )Accumulated other comprehensive income
    
    
    141,398
    
    
    
    106,713Total stockholders equity
    
    
    2,523,031
    
    
    
    2,281,869Total liabilities and stockholders equity
    
    $
    3,316,108
    
    
    $
    2,974,420
  42




---



##### Table of Contents



Molex Incorporated
 
 Consolidated Statements of Income
 Years Ended June 30,2007
    
    
    2006
    
    
    2005Net revenue
    
    $
    3,265,874
    
    
    $
    2,861,289
    
    
    $
    2,554,458Cost of sales
    
    
    2,249,166
    
    
    
    1,918,659
    
    
    
    1,721,796Gross profit
    
    
    1,016,708
    
    
    
    942,630
    
    
    
    832,662Selling, general and administrative
    
    
    658,289
    
    
    
    606,532
    
    
    
    576,354Restructuring costs and asset impairments
    
    
    36,869
    
    
    
    26,354
    
    
    
    30,168Goodwill impairment
    
    
    
    
    
    
    
    
    
    
    22,876Total operating expenses
    
    
    695,158
    
    
    
    632,886
    
    
    
    629,398Income from operations
    
    
    321,550
    
    
    
    309,744
    
    
    
    203,264Gain (loss) on investments
    
    
    1,159
    
    
    
    (1,245
    )
    
    
    2,916Equity income
    
    
    6,966
    
    
    
    9,456
    
    
    
    10,572Interest income, net
    
    
    8,582
    
    
    
    9,929
    
    
    
    6,449Total other income, net
    
    
    16,707
    
    
    
    18,140
    
    
    
    19,937Income before income taxes
    
    
    338,257
    
    
    
    327,884
    
    
    
    223,201Income taxes
    
    
    97,489
    
    
    
    91,793
    
    
    
    73,085Net income
    
    $
    240,768
    
    
    $
    236,091
    
    
    $
    150,116Earnings per share:Basic
    
    $
    1.31
    
    
    $
    1.27
    
    
    $
    0.80Diluted
    
    $
    1.30
    
    
    $
    1.26
    
    
    $
    0.79Average common shares outstanding:Basic
    
    
    183,961
    
    
    
    185,521
    
    
    
    188,646Diluted
    
    
    185,565
    
    
    
    187,416
    
    
    
    190,572
  43




---



##### Table of Contents



Molex Incorporated
 
 Consolidated Statements of Cash Flows
 Years Ended June 30,2007
    
    
    2006
    
    
    2005Operating activities:Net income
    
    
    240,768
    
    
    
    236,091
    
    
    
    150,116Add (deduct) non-cash items included in net income:Depreciation and amortization
    
    
    237,912
    
    
    
    214,657
    
    
    
    231,364Asset write-downs included in restructuring costs
    
    
    8,667
    
    
    
    2,870
    
    
    
    14,443(Gain) loss on investments
    
    
    (1,154
    )
    
    
    1,245
    
    
    
    (2,916
    )Goodwill impairment
    
    
    
    
    
    
    
    
    
    
    22,876Deferred income taxes
    
    
    20,998
    
    
    
    (8,501
    )
    
    
    7,691Loss (gain) on sale of property, plant and equipment
    
    
    1,800
    
    
    
    (701
    )
    
    
    11,811Share-based compensation
    
    
    27,524
    
    
    
    30,548
    
    
    
    18,420Other non-cash items
    
    
    12,041
    
    
    
    (777
    )
    
    
    5,757Changes in assets and liabilities, excluding effects of foreign
currency adjustments and acquisition:Accounts receivable
    
    
    31,736
    
    
    
    (107,210
    )
    
    
    (3,575
    )Inventories
    
    
    (9,005
    )
    
    
    (47,014
    )
    
    
    (24,739
    )Accounts payable
    
    
    (57,479
    )
    
    
    43,875
    
    
    
    16,400Other current assets and liabilities
    
    
    (60,421
    )
    
    
    58,857
    
    
    
    (3,287
    )Other assets and liabilities
    
    
    (1,953
    )
    
    
    19,916
    
    
    
    (13,526
    )Cash provided from operating activities
    
    
    451,434
    
    
    
    443,856
    
    
    
    430,835Investing activities:Capital expenditures
    
    
    (296,861
    )
    
    
    (276,783
    )
    
    
    (230,895
    )Proceeds from sales of property, plant and equipment
    
    
    9,946
    
    
    
    24,436
    
    
    
    11,529Proceeds from sales or maturities of marketable securities
    
    
    4,856,301
    
    
    
    1,351,165
    
    
    
    3,460,220Purchases of marketable securities
    
    
    (4,785,080
    )
    
    
    (1,313,829
    )
    
    
    (3,543,679
    )Acquisitions, net of cash acquired
    
    
    (238,072
    )
    
    
    (24,565
    )
    
    
    Other investing activities
    
    
    7,637
    
    
    
    (1,203
    )
    
    
    16,593Cash used for investing activities
    
    
    (446,129
    )
    
    
    (240,779
    )
    
    
    (286,232
    )Financing activities:Proceeds from revolving credit facility
    
    
    44,000
    
    
    
    
    
    
    
    Payments on revolving credit facility
    
    
    (44,000
    )
    
    
    
    
    
    
    Proceeds from issuance of long-term debt
    
    
    131,045
    
    
    
    
    
    
    
    Payments of long-term debt
    
    
    (26,937
    )
    
    
    (3,693
    )
    
    
    (4,177
    )Cash dividends paid
    
    
    (55,176
    )
    
    
    (34,843
    )
    
    
    (25,965
    )Exercise of stock options
    
    
    15,416
    
    
    
    15,783
    
    
    
    12,038Excess tax benefits from share-based compensation
    
    
    1,714
    
    
    
    369
    
    
    
    Purchase of treasury stock
    
    
    (34,889
    )
    
    
    (165,323
    )
    
    
    (58,217
    )Other financing activities
    
    
    (2,644
    )
    
    
    (2,107
    )
    
    
    632Cash provided from (used for)  financing activities
    
    
    28,529
    
    
    
    (189,814
    )
    
    
    (75,689
    )Effect of exchange rate changes on cash
    
    
    11,712
    
    
    
    9,796
    
    
    
    6,411Net increase in cash and cash equivalents
    
    
    45,546
    
    
    
    23,059
    
    
    
    75,325Cash and cash equivalents, beginning of year
    
    
    332,815
    
    
    
    309,756
    
    
    
    234,431Cash and cash equivalents, end of year
    
    $
    378,361
    
    
    $
    332,815
    
    
    $
    309,756Supplemental cash flow information:Interest paid
    
    $
    2,857
    
    
    $
    928
    
    
    $
    921Income taxes paid
    
    $
    95,197
    
    
    $
    70,092
    
    
    $
    81,377
  44




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##### Table of Contents



Molex Incorporated
 
 Consolidated Statements of Stockholders Equity
 Years Ended June 30,2007
    
    
    2006
    
    
    2005Common stock
    
    $
    11,020
    
    
    $
    10,900
    
    
    $
    10,796Paid-in capital:Beginning balance
    
    $
    442,586
    
    
    $
    425,259
    
    
    $
    395,873Reclassification from deferred unearned compensation
    
    
    
    
    
    
    (38,357
    )
    
    
    Stock-based compensation
    
    
    27,524
    
    
    
    30,548
    
    
    
    Stock options granted
    
    
    
    
    
    
    
    
    
    
    11,554Stock options forfeited
    
    
    
    
    
    
    
    
    
    
    (1,389
    )Exercise of stock options
    
    
    37,101
    
    
    
    23,958
    
    
    
    13,661Issuance of stock awards
    
    
    2,059
    
    
    
    
    
    
    
    4,597Reclass of directors deferred compensation plan
    
    
    6,059
    
    
    
    
    
    
    
    Other
    
    
    4,708
    
    
    
    1,178
    
    
    
    963Ending balance
    
    $
    520,037
    
    
    $
    442,586
    
    
    $
    425,259Retained earnings:Beginning balance
    
    $
    2,464,889
    
    
    $
    2,270,677
    
    
    $
    2,148,537Net income
    
    
    240,768
    
    
    
    236,091
    
    
    
    150,116Dividends
    
    
    (55,205
    )
    
    
    (41,613
    )
    
    
    (27,964
    )Other
    
    
    18
    
    
    
    (266
    )
    
    
    (12
    )Ending balance
    
    $
    2,650,470
    
    
    $
    2,464,889
    
    
    $
    2,270,677Treasury stock:Beginning balance
    
    $
    (743,219
    )
    
    $
    (568,917
    )
    
    $
    (509,161
    )Purchase of treasury stock
    
    
    (34,889
    )
    
    
    (165,323
    )
    
    
    (58,217
    )Exercise of stock options
    
    
    (21,801
    )
    
    
    (8,736
    )
    
    
    (1,685
    )Other
    
    
    15
    
    
    
    (243
    )
    
    
    146Ending balance
    
    $
    (799,894
    )
    
    $
    (743,219
    )
    
    $
    (568,917
    )Deferred unearned compensation:Beginning balance
    
    $
    
    
    
    $
    (38,357
    )
    
    $
    (42,134
    )Reclassification to paid-in capital
    
    
    
    
    
    
    38,357
    
    
    
    Stock options granted
    
    
    
    
    
    
    
    
    
    
    (11,554
    )Stock options forfeited
    
    
    
    
    
    
    
    
    
    
    1,508Issuance of stock awards
    
    
    
    
    
    
    
    
    
    
    (4,597
    )Compensation expense
    
    
    
    
    
    
    
    
    
    
    18,420Ending balance
    
    $
    
    
    
    $
    
    
    
    $
    (38,357
    )Accumulated other comprehensive income, net of tax:Beginning balance
    
    $
    106,713
    
    
    $
    71,296
    
    
    $
    66,573Translation adjustments
    
    
    51,009
    
    
    
    34,934
    
    
    
    4,678Minimum pension liability, net of tax
    
    
    (3,135
    )
    
    


    
    
    
Adjustment for initially applying SFAS No. 158, net of tax
    
    
    (17,965
    )
    
    
    
    
    
    
    Unrealized investment gain, net of tax
    
    
    4,776
    
    
    
    483
    
    
    
    45Ending balance
    
    $
    141,398
    
    
    $
    106,713
    
    
    $
    71,296Total stockholders equity
    
    $
    2,523,031
    
    
    $
    2,281,869
    
    
    $
    2,170,754Comprehensive income, net of tax:Net income
    
    $
    240,768
    
    
    $
    236,091
    
    
    $
    150,116Translation adjustments
    
    
    51,009
    
    
    
    34,934
    
    
    
    4,678Minimum pension liability, net of tax
    
    
    (3,135
    )
    
    


    
    
    
Unrealized investment gain, net of tax
    
    
    4,776
    
    
    
    483
    
    
    
    45Total comprehensive income, net of tax
    
    $
    293,418
    
    
    $
    271,508
    
    
    $
    154,839
  45




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##### 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
   Accounts Receivable
 46




---



##### Table of Contents



Inventories
  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
  47




---



##### Table of Contents



Revenue Recognition
        Research and Development
  Income Taxes
  48




---



##### Table of Contents



Derivative Instruments and Hedging Activities
  Stock-Based Compensation
    2005Net income as reported
    
    $
    150,116Add: Stock-based compensation included in reported
net income, net of related tax effects
    
    
    13,038Deduct: Stock-based compensation determined under
fair value method, net of related tax effects
    
    
    (23,077
    )Pro forma net income
    
    $
    140,077Earnings per share:Basic
    
    $
    0.80Diluted
    
    $
    0.79Pro forma earnings per share:Basic
    
    $
    0.74Diluted
    
    $
    0.74
 New Accounting Pronouncements
 Fair Value Measurements
  Fair Value Options
  49




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##### Table of Contents



Accounting for Uncertain Tax Positions
 Accounting for Uncertainty in Income
Taxes
 3. Earnings Per Share
  2007
    
    
    2006
    
    
    2005Net income
    
    $
    240,768
    
    
    $
    236,091
    
    
    $
    150,116Basic average common shares outstanding
    
    
    183,961
    
    
    
    185,521
    
    
    
    188,646Effect of dilutive stock options
    
    
    1,604
    
    
    
    1,895
    
    
    
    1,926Diluted average common shares outstanding
    
    
    185,565
    
    
    
    187,416
    
    
    
    190,572Earnings per share:Basic
    
    $
    1.31
    
    
    $
    1.27
    
    
    $
    0.80Diluted
    
    $
    1.30
    
    
    $
    1.26
    
    
    $
    0.79
  4. Acquisition
   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
 50




---



##### Table of Contents



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
  2007
    
    
    2006
    
    
    2005Americas Region:Severance costs
    
    $
    6,945
    
    
    $
    12,436
    
    
    $
    9,141Asset impairments
    
    
    4,811
    
    
    
    498
    
    
    
    7,238Other
    
    
    1,500
    
    
    
    
    
    
    
    Total
    
    $
    13,256
    
    
    $
    12,934
    
    
    $
    16,379European Region:Severance costs
    
    $
    12,037
    
    
    $
    6,867
    
    
    $
    3,636Asset impairments
    
    
    3,856
    
    
    
    1,460
    
    
    
    7,205Total
    
    $
    15,893
    
    
    $
    8,327
    
    
    $
    10,841Corporate and other:Severance costs
    
    $
    7,720
    
    
    $
    4,181
    
    
    $
    2,948Asset impairments
    
    
    
    
    
    
    912
    
    
    
    Total
    
    $
    7,720
    
    
    $
    5,093
    
    
    $
    2,948Total:Severance costs
    
    $
    26,702
    
    
    $
    23,484
    
    
    $
    15,725Asset impairments
    
    
    8,667
    
    
    
    2,870
    
    
    
    14,443Other
    
    
    1,500
    
    
    
    
    
    
    
    Total
    
    $
    36,869
    
    
    $
    26,354
    
    
    $
    30,168
  51




---



##### Table of Contents



Woodhead Restructuring Plan
    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
    
    
    $
    32,165
 52




---



##### Table of Contents



6. Inventories
  2007
    
    
    2006Raw materials
    
    $
    85,320
    
    
    $
    62,288Work in progress
    
    
    107,394
    
    
    
    107,533Finished goods
    
    
    199,966
    
    
    
    177,491Total inventories
    
    $
    392,680
    
    
    $
    347,312
 7. Property, Plant and Equipment
  2007
    
    
    2006Land and improvements
    
    $
    67,943
    
    
    $
    63,409Buildings and leasehold improvements
    
    
    614,466
    
    
    
    549,997Machinery and equipment
    
    
    1,502,406
    
    
    
    1,418,956Molds and dies
    
    
    668,452
    
    
    
    632,573Construction in progress
    
    
    92,157
    
    
    
    97,325Total
    
    
    2,945,424
    
    
    
    2,762,260Accumulated depreciation
    
    
    (1,824,055
    )
    
    
    (1,736,408
    )Net property, plant and equipment
    
    $
    1,121,369
    
    
    $
    1,025,852
  8. Goodwill
  2007
    
    
    2006
    
    
    2005Beginning balance
    
    $
    149,458
    
    
    $
    143,872
    
    
    $
    164,915Impairments
    
    
    
    
    
    
    
    
    
    
    (22,876
    )Additions
    
    
    183,677
    
    
    
    5,591
    
    
    
    1,800Other adjustments
    
    
    1,656
    
    
    
    (5
    )
    
    
    33Ending balance
    
    $
    334,791
    
    
    $
    149,458
    
    
    $
    143,872
   53




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##### Table of Contents



9. Investments
  10. Income Taxes
  2007
    
    
    2006
    
    
    2005United States
    
    $
    86,229
    
    
    $
    57,177
    
    
    $
    22,507International
    
    
    252,028
    
    
    
    270,707
    
    
    
    200,694Income before income taxes
    
    $
    338,257
    
    
    $
    327,884
    
    
    $
    223,201
  2007
    
    
    2006
    
    
    2005Current:U.S. Federal
    
    $
    5,406
    
    
    $
    8,204
    
    
    $
    2,583State
    
    
    318
    
    
    
    1,649
    
    
    
    (146
    )International
    
    
    70,767
    
    
    
    90,441
    
    
    
    62,957Total currently payable
    
    $
    76,491
    
    
    $
    100,294
    
    
    $
    65,394Deferred:U.S. Federal
    
    $
    12,579
    
    
    $
    296
    
    
    $
    925State
    
    
    370
    
    
    
    (289
    )
    
    
    (187
    )International
    
    
    8,049
    
    
    
    (8,508
    )
    
    
    6,953Total deferred
    
    
    20,998
    
    
    
    (8,501
    )
    
    
    7,691Total income tax expense
    
    $
    97,489
    
    
    $
    91,793
    
    
    $
    73,085
  2007
    
    2006
    
    2005U.S. Federal income tax rate
    
    
    35.0
    %
    
    
    35.0
    %
    
    
    35.0
    %Permanent tax exemptions
    
    
    (1.6
    )
    
    
    (2.6
    )
    
    
    (3.5
    )Repatriation of foreign earnings
    
    
    (4.5
    )
    
    
    (4.3
    )
    
    
    (4.0
    )Tax examinations and settlements
    
    
    (1.4
    )
    
    
    (0.9
    )
    
    
    (1.1
    )Goodwill impairment
    
    
    
    
    
    
    
    
    
    
    3.6Valuation allowance
    
    
    0.4
    
    
    
    1.6
    
    
    
    3.1Investments
    
    
    
    
    
    
    (0.8
    )
    
    
    State income taxes, net of Federal tax benefit
    
    
    0.4
    
    
    
    0.4
    
    
    
    (0.1
    )Foreign tax rates greater than U.S. Federal rate (net)
    
    
    (0.8
    )
    
    
    (0.8
    )
    
    
    (1.2
    )Other
    
    
    1.3
    
    
    
    0.4
    
    
    
    0.9Effective tax rate
    
    
    28.8
    %
    
    
    28.0
    %
    
    
    32.7
    %
  54




---



##### Table of Contents



2007
    
    
    2006Deferred tax assets:Pension and other postretirement liabilities
    
    $
    37,548
    
    
    $
    30,821Stock option and other benefits
    
    
    22,619
    
    
    
    20,806Capitalized research and development
    
    
    20,549
    
    
    
    23,740Foreign tax credits
    
    
    24,157
    
    
    
    31,741Net operating losses
    
    
    39,917
    
    
    
    33,975Depreciation and amortization
    
    
    
    
    
    
    13,527Inventory
    
    
    11,905
    
    
    
    11,349Minimum tax credit
    
    
    15,414
    
    
    
    15,475Allowance for doubtful accounts
    
    
    4,648
    
    
    
    4,722Other, net
    
    
    15,003
    
    
    
    15,751Total deferred tax assets before valuation allowance
    
    
    191,760
    
    
    
    201,907Valuation allowance
    
    
    (39,366
    )
    
    
    (33,920
    )Total deferred tax assets
    
    
    152,394
    
    
    
    167,987Deferred tax liabilities:Investments
    
    
    (20,136
    )
    
    
    (18,462
    )Depreciation and amortization
    
    
    (12,461
    )
    
    
    Total deferred tax liabilities
    
    
    (32,597
    )
    
    
    (18,462
    )Total net deferred tax assets
    
    $
    119,797
    
    
    $
    149,525
  2007
    
    
    2006Net deferred taxes:Current asset
    
    $
    16,171
    
    
    $
    19,054Non-current asset
    
    
    103,626
    
    
    
    130,471Total
    
    $
    119,797
    
    
    $
    149,525
   55




---



##### Table of Contents



11. Profit Sharing, Pension and Post Retirement Medical Benefit Plans
 Profit Sharing Plans
  Pension Plans
  Post Retirement Medical Benefit Plans
  Benefit Obligation and Plan Assets
  U.S. Pension
    
    
    Non-U.S. Pension
    
    
    PostretirementBenefits
    
    
    Benefits
    
    
    Medical Benefits2007
    
    
    2006
    
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Change in projected benefit obligation:Beginning benefit obligation
    
    $
    39,768
    
    
    $
    43,840
    
    
    $
    94,587
    
    
    $
    92,186
    
    
    $
    42,191
    
    
    $
    44,078Service cost
    
    
    2,687
    
    
    
    3,239
    
    
    
    5,531
    
    
    
    5,946
    
    
    
    2,329
    
    
    
    2,566Interest cost
    
    
    2,962
    
    
    
    2,291
    
    
    
    3,700
    
    
    
    3,100
    
    
    
    2,629
    
    
    
    2,387Plan participants contributions
    
    
    
    
    
    
    
    
    
    
    293
    
    
    
    257
    
    
    
    460
    
    
    
    413Actuarial (gain) loss
    
    
    4,737
    
    
    
    
    
    
    
    3,034
    
    
    
    
    
    
    
    4,480
    
    
    
    1,557Plan amendment
    
    
    
    
    
    
    
    
    
    
    3,106
    
    
    
    
    
    
    
    
    
    
    
    (7,241
    )Effect of curtailment/settlement
    
    
    (10
    )
    
    
    (2,789
    )
    
    
    
    
    
    
    (45
    )
    
    
    
    
    
    
    Business combination
    
    
    11,288
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Benefits paid to plan participants
    
    
    (1,031
    )
    
    
    (516
    )
    
    
    (3,126
    )
    
    
    (2,,762
    )
    
    
    (1,333
    )
    
    
    (1,570
    )Liability (gains) losses
    
    
    
    
    
    
    (6,297
    )
    
    
    
    
    
    
    (5,700
    )
    
    
    
    
    
    
    Changes in foreign currency
    
    
    
    
    
    
    
    
    
    
    (28
    )
    
    
    1,606
    
    
    
    
    
    
    
    Ending projected benefit obligation
    
    $
    60,401
    
    
    $
    39,768
    
    
    $
    107,097
    
    
    $
    94,588
    
    
    $
    50,756
    
    
    $
    42,190
 U.S. Pension
    
    
    Non-U.S. Pension
    
    
    PostretirementBenefits
    
    
    Benefits
    
    
    Medical Benefits2007
    
    
    2006
    
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Change in plan assets:Beginning fair value of plan assets
    
    $
    41,916
    
    
    $
    38,353
    
    
    $
    42,977
    
    
    $
    35,428
    
    
    $
    
    
    
    $
    Actual return on plan assets
    
    
    5,436
    
    
    
    6,017
    
    
    
    7,951
    
    
    
    4,143
    
    
    
    
    
    
    
    Employer contributions
    
    
    3,000
    
    
    
    
    
    
    
    10,343
    
    
    
    3,619
    
    
    
    1,151
    
    
    
    1,157Plan participants contributions
    
    
    
    
    
    
    
    
    
    
    293
    
    
    
    257
    
    
    
    460
    
    
    
    413
 56




---



##### Table of Contents



U.S. Pension
    
    
    Non-U.S. Pension
    
    
    PostretirementBenefits
    
    
    Benefits
    
    
    Medical Benefits2007
    
    
    2006
    
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Effect of settlement
    
    
    
    
    
    
    (1,938
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Business combination
    
    
    7,989
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Benefits paid to plan participants
    
    
    (1,030
    )
    
    
    (516
    )
    
    
    (3,126
    )
    
    
    (2,762
    )
    
    
    (1,611
    )
    
    
    (1,570
    )Changes in foreign currency
    
    
    
    
    
    
    
    
    
    
    2,581
    
    
    
    2,293
    
    
    
    
    
    
    
    Ending fair value of plan assets
    
    $
    57,311
    
    
    $
    41,916
    
    
    $
    61,019
    
    
    $
    42,978
    
    
    $
    
    
    
    $
    
  U.S. Pension
    
    
    Non-U.S. Pension
    
    
    PostretirementBenefits
    
    
    Benefits
    
    
    Medical Benefits2007
    
    
    2006
    
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Prepaid expenses
    
    $
    595
    
    
    $
    3,244
    
    
    $
    8,110
    
    
    $
    6,230
    
    
    $
    
    
    
    $
    Accrued pension and other
post retirement benefits
    
    
    (3,686
    )
    
    
    
    
    
    
    (54,251
    )
    
    
    (45,661
    )
    
    
    (50,756
    )
    
    
    (29,394
    )Accumulated other comprehensive
income
    
    
    4,333
    
    
    
    
    
    
    
    12,328
    
    
    
    
    
    
    
    16,850
    
    
    
    Net amount recognized
    
    $
    1,242
    
    
    $
    3,244
    
    
    $
    (33,813
    )
    
    $
    (39,431
    )
    
    $
    (33,906
    )
    
    $
    (29,394
    )
  Non-U.S.
    
    
    PostretirementU.S. Pension
    
    
    Pension
    
    
    MedicalBenefits
    
    
    Benefits
    
    
    BenefitsNet transition liability
    
    $
    
    
    
    $
    250
    
    
    $
    Net actuarial loss
    
    
    4,308
    
    
    
    9,309
    
    
    
    23,572Net prior service costs
    
    
    25
    
    
    
    2,769
    
    
    
    (6,722
    )Defined benefit plans, net
    
    $
    4,333
    
    
    $
    12,328
    
    
    $
    16,850
  Non-U.S.
    
    
    PostretirementU.S. Pension
    
    
    Pension
    
    
    MedicalBenefits
    
    
    Benefits
    
    
    BenefitsEnding Funded Status
    
    $
    2,147
    
    
    $
    (51,610
    )
    
    $
    42,190Unrecognized net transition liability
    
    
    
    
    
    
    293
    
    
    
    Unrecognized actuarial loss
    
    
    1,068
    
    
    
    11,886
    
    
    
    (20,193
    )Unrecognized prior service costs
    
    
    29
    
    
    
    
    
    
    
    7,397Net amount recognized
    
    $
    3,244
    
    
    $
    (39,431
    )
    
    $
    29,394
  Non-U.S.
    
    PostretirementU.S. Pension
    
    Pension
    
    MedicalBenefits
    
    Benefits
    
    BenefitsAccumulated benefit obligation
    
    $
    33,127
    
    
    $
    73,522
    
    
    $
    42,190
  U.S. Pension
    
    Non-U.S. PensionBenefits
    
    Benefits2007
    
    2006
    
    2007
    
    2006Plans with accumulated benefit obligations in excess of plan assets:Accumulated benefit obligations
    
    $
    9,731
    
    
    $
    
    
    
    $
    57,514
    
    
    $
    41,905Plan assets
    
    
    8,533
    
    
    
    
    
    
    
    10,643
    
    
    
    3,903Plans with projected benefit obligations in excess of plan assets:Projected benefit obligations
    
    
    12,219
    
    
    
    
    
    
    
    64,831
    
    
    
    56,745Plan assets
    
    
    8,533
    
    
    
    
    
    
    
    10,643
    
    
    
    3,903
 Assumptions
 57




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##### Table of Contents



PostretirementU.S. Pension Benefits
    
    Non-U.S. Pension Benefits
    
    Medical Benefits2007
    
    2006
    
    2007
    
    2006
    
    2007
    
    2006Discount rate
    
    
    6.2
    %
    
    
    6.4
    %
    
    
    3.8
    %
    
    
    3.9
    %
    
    
    6.2
    %
    
    
    6.3
    %Rate of compensation increase
    
    
    3.7
    %
    
    
    3.5
    %
    
    
    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
  2007
    
    2006
    
    2005Effect on total service and interest cost:Increase 100 basis points
    
    $
    1,287
    
    
    $
    1,476
    
    
    $
    1,073Decrease 100 basis points
    
    
    (1,014
    )
    
    
    (1,211
    )
    
    
    (908
    )Effect on benefit obligation:Increase 100 basis points
    
    $
    9,057
    
    
    $
    9,951
    
    
    $
    8,655Decrease 100 basis points
    
    
    (7,270
    )
    
    
    (8,164
    )
    
    
    (7,325
    )
  PostretirementU.S. Pension Benefits
    
    Non-U.S. Pension Benefits
    
    Medical Benefits2007
    
    2006
    
    2007
    
    2006
    
    2007
    
    2006Discount rate
    
    
    6.3
    %
    
    
    5.5
    %
    
    
    3.9
    %
    
    
    3.4
    %
    
    
    6.3
    %
    
    
    5.5
    %Expected return on plan assets
    
    
    8.4
    %
    
    
    8.5
    %
    
    
    6.5
    %
    
    
    5.9
    %
    
    
    
    
    
    
    Rate of compensation increase
    
    
    3.7
    %
    
    
    3.5
    %
    
    
    3.4
    %
    
    
    3.0
    %
    
    
    
    
    
    
    Health care cost trend
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10.0
    %
    
    
    10.0
    %Ultimate health care cost trend
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5.0
    %
    
    
    5.0
    %Years of ultimate rate
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2011
    
    
    
    2010
  Net Periodic Benefit Cost
  PostretirementU.S. Pension Benefits
    
    
    Non-U.S. Pension Benefits
    
    
    Medical Benefits2007
    
    
    2006
    
    
    2005
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2007
    
    
    2006
    
    
    2005Service cost
    
    $
    2,687
    
    
    $
    3,239
    
    
    $
    2,805
    
    
    $
    5,531
    
    
    $
    5,946
    
    
    $
    5,329
    
    
    $
    2,329
    
    
    $
    2,566
    
    
    $
    1,878Interest cost
    
    
    2,962
    
    
    
    2,291
    
    
    
    2,080
    
    
    
    3,700
    
    
    
    3,100
    
    
    
    2,953
    
    
    
    2,629
    
    
    
    2,387
    
    
    
    1,884
 58




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##### Table of Contents



PostretirementU.S. Pension Benefits
    
    
    Non-U.S. Pension Benefits
    
    
    Medical Benefits2007
    
    
    2006
    
    
    2005
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2007
    
    
    2006
    
    
    2005Expected return on plan assets
    
    
    (3,939
    )
    
    
    (3,070
    )
    
    
    (2,892
    )
    
    
    (2,901
    )
    
    
    (2,098
    )
    
    
    (2,097
    )
    
    
    
    
    
    
    
    
    
    
    Amortization of prior service cost
    
    
    4
    
    
    
    110
    
    
    
    204
    
    
    
    218
    
    
    
    
    
    
    
    71
    
    
    
    (676
    )
    
    
    (71
    )
    
    
    (262
    )Amortization of unrecognized
transition obligation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    40
    
    
    
    40
    
    
    
    4
    
    
    
    
    
    
    
    
    
    
    
    Recognized actuarial losses
    
    
    
    
    
    
    716
    
    
    
    399
    
    
    
    176
    
    
    
    741
    
    
    
    529
    
    
    
    1,102
    
    
    
    1,039
    
    
    
    635Other items
    
    
    (12
    )
    
    
    4
    
    
    
    
    
    
    
    
    
    
    
    (45
    )
    
    
    285
    
    
    
    278
    
    
    
    
    
    
    
    773Net periodic benefit cost
    
    $
    1,702
    
    
    $
    3,290
    
    
    $
    2,596
    
    
    $
    6,764
    
    
    $
    7,684
    
    
    $
    7,074
    
    
    $
    5,662
    
    
    $
    5,921
    
    
    $
    4,908
  Plan Assets
  2007
    
    2006Non-U.S.
    
    
    
    
    
    Non-U.S.U.S. Plan
    
    
    
    
    
    Plan
    
    
    
    
    
    PlanAssets
    
    
    
    
    
    Assets
    
    Assets
    
    AssetsAsset category:Equity
    
    
    68
    %
    
    
    
    
    
    
    70
    %
    
    
    65
    %
    
    
    71
    %Bonds
    
    
    32
    %
    
    
    
    
    
    
    21
    %
    
    
    30
    %
    
    
    20
    %Other
    
    
    
    
    
    
    
    
    
    
    9
    %
    
    
    5
    %
    
    
    9
    %
 Adoption of SFAS No. 158
  Before
    
    
    
    
    
    AfterApplication of
    
    
    
    
    
    Application ofSFAS No. 158
    
    Adjustments
    
    SFAS No. 158Non-current deferred income taxes
    
    $
    1,545
    
    
    $
    10,866
    
    
    $
    12,411Other assets
    
    
    15,205
    
    
    
    (6,500
    )
    
    
    8,705Other non-current liabilities
    
    
    86,362
    
    
    
    22,331
    
    
    
    108,693Accumulated other comprehensive income (loss)
    
    
    159,363
    
    
    
    (17,965
    )
    
    
    141,398
 Funding Expectations
  Estimated Future Benefit Payments
 59




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##### Table of Contents



12. Debt
   13. Leases
  OperatingYear ending June 30:
    
    Leases2008
    
    $
    13,8702009
    
    
    5,6692010
    
    
    3,9472011
    
    
    2,8362012
    
    
    3,1362013 and thereafter
    
    
    6,556Total lease payments
    
    $
    36,014
  14. Capital Stock
   60




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##### Table of Contents



Class ACommon Stock
    
    
    Common Stock
    
    
    Treasury StockShares
    
    
    Amount
    
    
    Shares
    
    
    Amount
    
    
    Shares
    
    
    AmountOutstanding at June 30, 2004
    
    
    110,415
    
    
    $
    5,521
    
    
    
    104,162
    
    
    $
    5,208
    
    
    
    25,601
    
    
    $
    509,161Exercise of stock options
    
    
    399
    
    
    
    20
    
    
    
    836
    
    
    
    42
    
    
    
    64
    
    
    
    1,685Purchase of treasury stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,395
    
    
    
    58,217Issuance of stock awards
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (25
    )
    
    
    (553
    )Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14
    
    
    
    407Outstanding 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
    
    
    $
    799,894
 15. Accumulated Other Comprehensive Income
  2007
    
    
    2006Foreign currency translation adjustments
    
    $
    157,002
    
    
    $
    105,993Non-current deferred tax asset
    
    
    12,411
    
    
    
    Accumulated transition obligation
    
    
    (250
    )
    
    
    Accumulated prior service credit
    
    
    3,928
    
    
    
    Accumulated net loss
    
    
    (37,189
    )
    
    
    Unrealized gains on investments
    
    
    5,496
    
    
    
    720Total
    
    $
    141,398
    
    
    $
    106,713
 16. Stock Incentive Plans
  Stock Options
 61




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##### Table of Contents



ExerciseShares
    
    PriceOutstanding at June 30, 2004
    
    
    9,506
    
    
    $
    18.17Granted
    
    
    2,256
    
    
    
    18.78Exercised
    
    
    (1,084
    )
    
    
    12.66Forfeited or expired
    
    
    (134
    )
    
    
    12.54Outstanding 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
    
    
    $
    20.98Exercisable at June 30, 2007
    
    
    4,009
    
    
    $
    24.14
   2007
    
    2006
    
    2005Weighted-average fair value of options granted:At market value of underlying stock
    
    $
    9.82
    
    
    $
    8.15
    
    
    $
    7.25At less than market value of underlying stock
    
    $
    14.68
    
    
    $
    17.18
    
    
    $
    13.26Assumptions:
 62




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##### Table of Contents



2007
    
    2006
    
    2005Dividend yield
    
    
    1.06
    %
    
    
    0.72
    %
    
    
    0.60
    %Expected volatility
    
    
    28.44
    %
    
    
    28.25
    %
    
    
    35.88
    %Risk-free interest rate
    
    
    4.79
    %
    
    
    4.06
    %
    
    
    3.26
    %Expected life of option (years)
    
    
    3.94
    
    
    
    3.66
    
    
    
    3.98
  Stock Awards
  Fair MarketShares
    
    ValueNonvested shares at June 30, 2004
    
    
    409
    
    
    $
    24.33Granted
    
    
    188
    
    
    
    24.49Vested
    
    
    (151
    )
    
    
    25.32Nonvested 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
    
    
    $
    27.08
  Directors Deferred Compensation Plan
   17. Segment and Related Information
  63




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##### Table of Contents



Asia Pacific
    
    
    Asia Pacific
    
    
    
    
    
    
    CorporateAmericas
    
    
    North
    
    
    South
    
    
    Europe
    
    
    and Other
    
    
    Elims.
    
    
    Total2007:Customer revenue
    
    $
    783,464
    
    
    $
    510,311
    
    
    $
    1,128,034
    
    
    $
    556,096
    
    
    $
    287,969
    
    
    $
    
    
    
    $
    3,265,874Intercompany revenue
    
    
    249,103
    
    
    
    411,792
    
    
    
    156,340
    
    
    
    64,501
    
    
    
    132,703
    
    
    
    (1,014,439
    )
    
    
    Net revenue
    
    $
    1,032,567
    
    
    $
    922,103
    
    
    $
    1,284,374
    
    
    $
    620,597
    
    
    $
    420,672
    
    
    $
    (1,014,439
    )
    
    $
    3,265,874Depreciation and amortization
    
    $
    44,770
    
    
    $
    88,637
    
    
    $
    47,929
    
    
    $
    32,364
    
    
    $
    24,212
    
    
    $
    
    
    
    $
    237,912Income tax expense
    
    
    36,216
    
    
    
    38,819
    
    
    
    23,308
    
    
    
    1,679
    
    
    
    (2,533
    )
    
    
    
    
    
    
    97,489Net income (loss)
    
    
    47,321
    
    
    
    106,552
    
    
    
    119,200
    
    
    
    3,572
    
    
    
    (35,877
    )
    
    
    
    
    
    
    240,768Assets
    
    
    1,362,494
    
    
    
    651,621
    
    
    
    992,748
    
    
    
    593,223
    
    
    
    982,473
    
    
    
    (1,266,451
    )
    
    
    3,316,108Capital expenditures
    
    
    52,314
    
    
    
    119,319
    
    
    
    66,585
    
    
    
    43,792
    
    
    
    14,851
    
    
    
    
    
    
    
    296,8612006:Customer revenue
    
    $
    793,296
    
    
    $
    450,860
    
    
    $
    1,036,892
    
    
    $
    511,375
    
    
    $
    68,866
    
    
    $
    
    
    
    $
    2,861,289Intercompany revenue
    
    
    209,491
    
    
    
    403,116
    
    
    
    138,614
    
    
    
    46,439
    
    
    
    124,813
    
    
    
    (922,473
    )
    
    
    Net revenue
    
    $
    1,002,787
    
    
    $
    853,976
    
    
    $
    1,175,506
    
    
    $
    557,814
    
    
    $
    193,679
    
    
    $
    (922,473
    )
    
    $
    2,861,289Depreciation and amortization
    
    $
    50,414
    
    
    $
    75,325
    
    
    $
    40,097
    
    
    $
    34,561
    
    
    $
    14,260
    
    
    $
    
    
    
    $
    214,657Income tax expense
    
    
    27,729
    
    
    
    50,568
    
    
    
    22,777
    
    
    
    2,320
    
    
    
    (11,601
    )
    
    
    
    
    
    
    91,793Net income (loss)
    
    
    44,885
    
    
    
    115,080
    
    
    
    131,242
    
    
    
    (7,581
    )
    
    
    (47,535
    )
    
    
    
    
    
    
    236,091Assets
    
    
    1,046,084
    
    
    
    680,810
    
    
    
    933,433
    
    
    
    544,334
    
    
    
    493,470
    
    
    
    (723,711
    )
    
    
    2,974,420Capital expenditures
    
    
    46,503
    
    
    
    117,294
    
    
    
    64,365
    
    
    
    26,614
    
    
    
    22,007
    
    
    
    
    
    
    
    276,7832005:Customer revenue
    
    $
    701,470
    
    
    $
    461,873
    
    
    $
    835,368
    
    
    $
    505,953
    
    
    $
    49,794
    
    
    $
    
    
    
    $
    2,554,458Intercompany revenue
    
    
    184,528
    
    
    
    319,739
    
    
    
    137,548
    
    
    
    44,902
    
    
    
    111,153
    
    
    
    (797,870
    )
    
    
    Net revenue
    
    $
    885,998
    
    
    $
    781,612
    
    
    $
    972,916
    
    
    $
    550,855
    
    
    $
    160,947
    
    
    $
    (797,870
    )
    
    $
    2,554,458Depreciation and amortization
    
    $
    58,334
    
    
    $
    79,157
    
    
    $
    35,483
    
    
    $
    42,512
    
    
    $
    15,878
    
    
    $
    
    
    
    $
    231,364Income tax expense
    
    
    16,803
    
    
    
    47,163
    
    
    
    19,836
    
    
    
    (325
    )
    
    
    (10,392
    )
    
    
    
    
    
    
    73,085Net income (loss)
    
    
    28,060
    
    
    
    102,746
    
    
    
    93,167
    
    
    
    (17,289
    )
    
    
    (56,568
    )
    
    
    
    
    
    
    150,116Assets
    
    
    967,940
    
    
    
    542,307
    
    
    
    751,468
    
    
    
    522,856
    
    
    
    364,579
    
    
    
    (418,988
    )
    
    
    2,730,162Capital expenditures
    
    
    36,173
    
    
    
    95,816
    
    
    
    57,679
    
    
    
    29,577
    
    
    
    11,650
    
    
    
    
    
    
    
    230,895
   2007
    
    
    2006
    
    
    2005Customer revenue:United States
    
    $
    896,625
    
    
    $
    764,074
    
    
    $
    674,575Japan
    
    
    484,613
    
    
    
    421,603
    
    
    
    433,465China
    
    
    717,735
    
    
    
    642,369
    
    
    
    495,926Net property, plant and equipment:United States
    
    $
    313,109
    
    
    $
    293,055
    
    
    $
    301,140Japan
    
    
    280,246
    
    
    
    276,696
    
    
    
    251,429China
    
    
    188,670
    
    
    
    161,717
    
    
    
    136,798
  18. Quarterly Financial Information (Unaudited)
  64




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##### Table of Contents



First
    
    Second
    
    Third
    
    FourthQuarter
    
    Quarter
    
    Quarter
    
    QuarterNet revenue
    
    $
    829,545
    
    
    $
    837,467
    
    
    $
    807,014
    
    
    $
    791,848Gross profit
    
    
    269,409
    
    
    
    258,509
    
    
    
    250,988
    
    
    
    237,802Income before income taxes
    
    
    107,005
    
    
    
    94,619
    
    
    
    92,296
    
    
    
    44,337Income taxes
    
    
    30,504
    
    
    
    28,392
    
    
    
    26,978
    
    
    
    11,615Net 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
  First
    
    Second
    
    Third
    
    FourthQuarter
    
    Quarter
    
    Quarter
    
    QuarterNet revenue
    
    $
    659,815
    
    
    $
    697,348
    
    
    $
    720,327
    
    
    $
    783,799Gross profit
    
    
    213,819
    
    
    
    227,796
    
    
    
    242,398
    
    
    
    258,617Income before income taxes
    
    
    64,663
    
    
    
    81,389
    
    
    
    85,572
    
    
    
    96,260Income taxes
    
    
    18,423
    
    
    
    23,193
    
    
    
    24,388
    
    
    
    25,789Net income
    
    
    46,240
    
    
    
    58,196
    
    
    
    61,184
    
    
    
    70,471Basic earnings per share
    
    
    0.25
    
    
    
    0.31
    
    
    
    0.33
    
    
    
    0.38Diluted earnings per share
    
    
    0.25
    
    
    
    0.31
    
    
    
    0.33
    
    
    
    0.38
   65




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##### 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
   
 66




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##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 The Board of Directors and Stockholders of Molex Incorporated
        67




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##### Table of Contents



68




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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
  Evaluation of Disclosure Controls and Procedures
    Managements Report on Internal Control Over Financial Reporting
  69




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##### Table of Contents



Internal
ControlIntegrated Framework
  Changes in Internal Control over Financial Reporting
  Inherent Limitations on Effectiveness of Controls
  
 Item 9B. Other Information
  70




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##### Table of Contents



PART III
 
 Item 10. Directors, Executive Officers and Corporate Governance
  
 Item 11. Executive Compensation
  
 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
      71




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##### Table of Contents



Molex Incorporated
 
 Schedule II  Valuation and Qualifying Accounts
 For the Years Ended June 30, 2007, 2006, and 2005
  Balance at
    
    
    
    
    
    
    
    
    
    
    Other/
    
    
    Balance atBeginning
    
    
    Charges
    
    
    
    
    
    
    Currency
    
    
    Endof Period
    
    
    to Income
    
    
    Write-Offs
    
    
    Translation
    
    
    of PeriodReceivable Reserves:Year ended 2007
    
    $
    26,513
    
    
    $
    71,245
    
    
    $
    (67,422
    )
    
    $
    728
    
    
    $
    31,064Year ended 2006
    
    $
    20,293
    
    
    $
    69,187
    
    
    $
    (63,524
    )
    
    $
    557
    
    
    $
    26,513Year ended 2005
    
    $
    19,732
    
    
    $
    54,295
    
    
    $
    (49,730
    )
    
    $
    (4,004
    )
    
    $
    20,293Inventory Reserves:Year 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
    
    
    $
    33,934Year ended 2005:Slow and Excess
    
    $
    33,758
    
    
    $
    12,673
    
    
    $
    (15,732
    )
    
    $
    (1,188
    )
    
    $
    29,511Blocked Stock
    
    
    2,114
    
    
    
    (488
    )
    
    
    
    
    
    
    
    
    
    
    1,626Other
    
    
    4,313
    
    
    
    (1,252
    )
    
    
    
    
    
    
    
    
    
    
    3,061Total
    
    $
    40,185
    
    
    $
    10,933
    
    
    $
    (15,732
    )
    
    $
    (1,188
    )
    
    $
    34,198Deferred tax asset valuation allowance:Year ended 2007
    
    $
    33,920
    
    
    $
    1,308
    
    
    $
    
    
    
    $
    4,138
    
    
    $
    39,366Year ended 2006
    
    $
    28,700
    
    
    $
    5,345
    
    
    $
    (125
    )
    
    
    
    
    
    $
    33,920Year ended 2005
    
    $
    23,076
    
    
    $
    6,849
    
    
    $
    (1,225
    )
    
    
    
    
    
    $
    28,700
 72




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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 3.2 to our
Form 8-K filed on
May 17, 20074
    
    Instruments defining rights of security holders
    
    See Exhibit 3.110.1
    
    Summary of Salary and Bonus Arrangements with
Certain Executive Officers
    
    Incorporated by
reference to our
Form 8-K filed on
August 1, 200610.2
    
    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,
200510.3
    
    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,
200510.4
    
    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,
200510.5
    
    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,
200510.6
    
    Molex-Japan Directors and Executive Officers
Retirement Trust, as amended and restated
    
    Incorporated by
reference to
Exhibit 99.2 to our
Form 8-K filed on
June 7, 200510.7
    
    Molex Deferred Compensation Plan
    
    Incorporated by
reference to
Exhibit 99.2 to our
Form 8-K filed on
August 1, 200610.8
    
    Supplemental Executive Retirement Plan
    
    Incorporate by
reference to
Exhibit 10.8 to our
annual report on
Form 10-K for the
year ended June 30,
2006.10.9
    
    Summary of Non-Employee Director Compensation
    
    Incorporated by
reference to
Exhibit 10.1 to our
Form 10-Q for the
period ended
September 30, 200610.10
    
    Molex Outside Directors Deferred Compensation
Plan
    
    Incorporated by
reference to
Exhibit 99.1 to our
Form 8-K filed on
August 1, 2006
 73




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##### Table of Contents



ExhibitNumber
    
    Description
    
    Location10.11
    
    2005 Molex Incentive Stock Option Plan
    
    Incorporated by
reference to
Exhibit 10.2 to our
Form 10-Q for the
period ended
September 30, 200610.12
    
    Form of Stock Option Agreement under the 2005
Molex Incentive Stock Option Plan
    
    Filed herewith10.13
    
    2000 Molex Long-Term Stock Plan, as amended and
restated
    
    Incorporated by
reference to
Exhibit 10.3 to our
Form 10-Q for the
period ended
September 30, 200610.14
    
    Form of Equity Award Agreement under the 2000
Molex Long-Term Stock Plan
    
    Filed herewith10.15
    
    2000 Molex Incorporated Incentive Stock Option Plan
    
    Incorporated by
reference to
Exhibit 10.6 of our
annual report on
Form 10-K for the
year ended June 30,
200110.16
    
    Form of Stock Option Agreement under the 2000
Molex Incorporated Incentive Stock Option Plan
    
    Incorporated by
reference to
Exhibit 10.9 to our
quarterly report on
Form 10-Q for the
period ended March
31, 200510.17
    
    1991 Molex Incorporated Incentive Stock Option Plan
    
    Incorporated by
reference to
Exhibit 10.4 to our
annual report on
Form 10-K for the
year ended June 30,
199921
    
    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
  74




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##### Table of Contents



Signatures
  MOLEX INCORPORATED

(Company)August 3, 2007
    
    Executive Vice President, Treasurer and Chief

Financial Officer (Principal Financial Officer)
    
    By: / S/ DAVID D. JOHNSON

David D. Johnson
  August 3, 2007
    
    Co-Chairman of the Board
    
    /S/ FREDERICK A. KREHBIEL

Frederick A. KrehbielAugust 3, 2007
    
    Co-Chairman of the Board
    
    /S/ JOHN H. KREHBIEL, JR.John H. Krehbiel, Jr.August 3, 2007
    
    Vice Chairman of the
Board and Chief

Executive Officer

(Principal Executive Officer)
    
    /S/ MARTIN P. SLARKMartin P. SlarkAugust 3, 2007
    
    Executive Vice President, Treasurer and Chief
Financial Officer (Principal Financial Officer)
    
    /S/ DAVID D. JOHNSONDavid D. JohnsonAugust 3, 2007
    
    Corporate Controller and Chief Accounting Officer (Principal Accounting
Officer)
    
    /S/ K. TRAVIS GEORGEK. Travis GeorgeAugust 3, 2007
    
    Director
    
    /S/ FRED L. KREHBIELFred L. KrehbielAugust 3, 2007
    
    Director
    
    /S/ MICHAEL J. BIRCKMichael J. BirckAugust 3, 2007
    
    Director
    
    /S/ MICHELLE L. COLLINSMichelle L. CollinsAugust 3, 2007
    
    Director
    
    /S/ EDGAR D. JANNOTTAEdgar D. JannottaAugust 3, 2007
    
    Director
    
    /S/ KAZUMASA KUSAKAKazumasa KusakaAugust 3, 2007
    
    Director
    
    /S/ DAVID L. LANDSITTELDavid L. LandsittelAugust 3, 2007
    
    Director
    
    /S/ DONALD G. LUBINDonald G. LubinAugust 3, 2007
    
    Director
    
    /S/ ROBERT J. POTTERRobert J. Potter
 75