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Table\ue000 of\ue000 Contents
UNITED\ue000 STATES
SECURITIES\ue000 AND\ue000 EXCHANGE\ue000 COMMISSION
Washington,\ue000 DC\ue000 20549
\ue000
FORM\ue000 10-K
(Mark\ue000 One)
x
ANNUAL\ue000 REPORT\ue000 PURSUANT\ue000 TO\ue000 SECTION\ue000 13\ue000 OR\ue000 15(d)\ue000 OF\ue000 THE\ue000 SECURITIES\ue000 EXCHANGE\ue000 ACT\ue000 OF\ue000 1934
For\ue000 the\ue000 fiscal\ue000 year\ue000 ended\ue000 December\ue000 31,\ue000 2008
or
\ue000
\u00ae
TRANSITION\ue000 REPORT\ue000 PURSUANT\ue000 TO\ue000 SECTION\ue000 13\ue000 OR\ue000 15(d)\ue000 OF\ue000 THE\ue000 SECURITIES\ue000 EXCHANGE\ue000 ACT\ue000 OF\ue000 1934
For\ue000 the\ue000 transition\ue000 period\ue000 from\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000 to\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000 .
Commission\ue000 File\ue000 No.\ue000 001-32342
\ue000
\ue000
NALCO\ue000 HOLDING\ue000 COMPANY
(Exact\ue000 name\ue000 of\ue000 registrant\ue000 as\ue000 specified\ue000 in\ue000 its\ue000 charter)
\ue000
Delaware
\ue000
16-1701300
(State\ue000 or\ue000 other\ue000 jurisdiction\ue000 of
\ue000
(I.R.S.\ue000 Employer
Incorporation\ue000 or\ue000 Organization)
\ue000
Identification\ue000 Number)
1601\ue000 West\ue000 Diehl\ue000 Road
Naperville,\ue000 IL\ue000 60563-1198
(630)\ue000 305-1000
(Address,\ue000 Including\ue000 Zip\ue000 Code,\ue000 and\ue000 Telephone\ue000 Number,\ue000 Including\ue000 Area\ue000 Code,\ue000 of\ue000 Registrant\u2019s\ue000 Principal\ue000 Executive\ue000 Offices)
Securities\ue000 registered\ue000 pursuant\ue000 to\ue000 Section\ue000 12(b)\ue000 of\ue000 the\ue000 Act:
\ue000
Title\ue000 of\ue000 each\ue000 class
\ue000
Name\ue000 of\ue000 each\ue000 exchange\ue000 on\ue000 which\ue000 registered
Common\ue000 Stock,\ue000 $0.01\ue000 par\ue000 value
\ue000
New\ue000 York\ue000 Stock\ue000 Exchange
Securities\ue000 registered\ue000 pursuant\ue000 to\ue000 Section\ue000 12(g)\ue000 of\ue000 the\ue000 Act:
None

Indicate\ue000 by\ue000 check\ue000 mark\ue000 if\ue000 the\ue000 registrant\ue000 is\ue000 a\ue000 well-known\ue000 seasoned\ue000 issuer,\ue000 as\ue000 defined\ue000 in\ue000 Rule\ue000 405\ue000 of\ue000 the\ue000 Securities\ue000 Act.\ue000 Yes\ue000x\ue000\ue000\ue000\ue000 No\ue000\u00ae
Indicate\ue000 by\ue000 check\ue000 mark\ue000 if\ue000 the\ue000 registrant\ue000 is\ue000 not\ue000 required\ue000 to\ue000 file\ue000 reports\ue000 pursuant\ue000 to\ue000 Section\ue000 13\ue000 or\ue000 Section\ue000 15(d)\ue000 of\ue000 the\ue000 Act.\ue000 Yes\ue000\u00ae\ue000\ue000\ue000\ue000 No\ue000x
Indicate\ue000 by\ue000 check\ue000 mark\ue000 whether\ue000 the\ue000 registrant\ue000 (1)\ue000 has\ue000 filed\ue000 all\ue000 reports\ue000 required\ue000 to\ue000 be\ue000 filed\ue000 by\ue000 Section\ue000 13\ue000 or\ue000 15(d)\ue000 of\ue000 the\ue000 Securities\ue000 Exchange\ue000 Act

of\ue000 1934\ue000 during\ue000 the\ue000 preceding\ue000 12\ue000 months\ue000 (or\ue000 for\ue000 such\ue000 shorter\ue000 period\ue000 that\ue000 the\ue000 registrant\ue000 was\ue000 required\ue000 to\ue000 file\ue000 such\ue000 reports),\ue000 and\ue000 (2)\ue000 has\ue000 been
subject\ue000 to\ue000 such\ue000 filing\ue000 requirements\ue000 for\ue000 the\ue000 past\ue000 90\ue000 days.\ue000 Yes\ue000x\ue000\ue000\ue000\ue000 No\ue000\u00ae

Indicate\ue000 by\ue000 check\ue000 mark\ue000 if\ue000 disclosure\ue000 of\ue000 delinquent\ue000 filers\ue000 pursuant\ue000 to\ue000 Item\ue000 405\ue000 of\ue000 Regulation\ue000 S-K\ue000 (\u00a7\ue000 229.405\ue000 of\ue000 this\ue000 chapter)\ue000 is\ue000 not\ue000 contained
herein,\ue000 and\ue000 will\ue000 not\ue000 be\ue000 contained,\ue000 to\ue000 the\ue000 best\ue000 of\ue000 registrant\u2019s\ue000 knowledge,\ue000 in\ue000 definitive\ue000 proxy\ue000 or\ue000 information\ue000 statements\ue000 incorporated\ue000 by\ue000 reference
in\ue000 Part\ue000 III\ue000 of\ue000 this\ue000 Form\ue000 10-K\ue000 or\ue000 any\ue000 amendment\ue000 to\ue000 this\ue000 Form\ue000 10-K.\ue000\u00ae

Indicate\ue000 by\ue000 check\ue000 mark\ue000 whether\ue000 the\ue000 registrant\ue000 is\ue000 a\ue000 large\ue000 accelerated\ue000 filer,\ue000 an\ue000 accelerated\ue000 filer,\ue000 or\ue000 a\ue000 non-accelerated\ue000 filer.\ue000 See\ue000 definition\ue000 of
\u201caccelerated\ue000 filer\ue000 and\ue000 large\ue000 accelerated\ue000 filer\u201d\ue000 in\ue000 Rule\ue000 12b-2\ue000 of\ue000 the\ue000 Exchange\ue000 Act.
Large\ue000 accelerated\ue000 filer\ue000\ue000\ue000\ue000x \ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000 Accelerated\ue000 filer\ue000\ue000\ue000\ue000\u00ae \ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000 Non-accelerated\ue000 filer\ue000\ue000\ue000\ue000\u00ae \ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000
Indicate\ue000 by\ue000 check\ue000 mark\ue000 whether\ue000 the\ue000 registrant\ue000 is\ue000 a\ue000 shell\ue000 company,\ue000 as\ue000 defined\ue000 in\ue000 Rule\ue000 12b-2\ue000 of\ue000 the\ue000 Exchange\ue000 Act.\ue000 Yes\ue000\u00ae\ue000\ue000\ue000\ue000 No\ue000x
The\ue000 aggregate\ue000 market\ue000 value\ue000 of\ue000 voting\ue000 and\ue000 non-voting\ue000 common\ue000 stock\ue000 held\ue000 by\ue000 non-affiliates\ue000 of\ue000 the\ue000 registrant\ue000 as\ue000 of\ue000 June\ue000 30,\ue000 2008\ue000 was
$2,947,131,564.
As\ue000 of\ue000 January\ue000 30,\ue000 2009,\ue000 the\ue000 number\ue000 of\ue000 shares\ue000 of\ue000 the\ue000 registrant\u2019s\ue000 common\ue000 stock,\ue000 par\ue000 value\ue000 $0.01\ue000 per\ue000 share,\ue000 outstanding\ue000 was\ue000 137,379,603\ue000 shares.
DOCUMENTS\ue000 INCORPORATED\ue000 BY\ue000 REFERENCE
Portions\ue000 of\ue000 the\ue000 registrant\u2019s\ue000 proxy\ue000 statement\ue000 (the\ue000 \u201cProxy\ue000 Statement\u201d)\ue000 for\ue000 the\ue000 annual\ue000 meeting\ue000 of\ue000 shareholders\ue000 to\ue000 be\ue000 held\ue000 May\ue000 1,\ue000 2009\ue000 are
incorporated\ue000 by\ue000 reference\ue000 into\ue000 Part\ue000 III.
Processed and formatted by SEC Watch - Visit SECWatch.com
Table\ue000 of\ue000 Contents
FORM\ue000 10-K
NALCO\ue000 HOLDING\ue000 COMPANY
TABLE\ue000 OF\ue000 CONTENTS
\ue000
Part\ue000 I
Item\ue000 1.
\ue000Business
\ue000\ue000
3
Item\ue000 1A.
\ue000Risk\ue000 Factors
\ue000\ue000
19
Item\ue000 1B.
\ue000Unresolved\ue000 Staff\ue000 Comments
\ue000\ue000
25
Item\ue000 2.
\ue000Properties
\ue000\ue000
25
Item\ue000 3.
\ue000Legal\ue000 Proceedings
\ue000\ue000
25
Item\ue000 4.
\ue000Submission\ue000 of\ue000 Matters\ue000 to\ue000 a\ue000 Vote\ue000 of\ue000 Security\ue000 Holders
\ue000\ue000
26
Part\ue000 II
Item\ue000 5.
\ue000Market\ue000 for\ue000 Registrant\u2019s\ue000 Common\ue000 Equity,\ue000 Related\ue000 Stockholder\ue000 Matters\ue000 and\ue000 Issuer\ue000 Purchases\ue000 of\ue000 Equity\ue000 Securities
\ue000\ue000
27
Item\ue000 6.
\ue000Selected\ue000 Financial\ue000 Data
\ue000\ue000
29
Item\ue000 7.
\ue000Management\u2019s\ue000 Discussion\ue000 and\ue000 Analysis\ue000 of\ue000 Financial\ue000 Condition\ue000 and\ue000 Results\ue000 of\ue000 Operations
\ue000\ue000
33
Item\ue000 7A.
\ue000Quantitative\ue000 and\ue000 Qualitative\ue000 Disclosures\ue000 About\ue000 Market\ue000 Risk
\ue000\ue000
58
Item\ue000 8.
\ue000Financial\ue000 Statements\ue000 and\ue000 Supplementary\ue000 Data
\ue000\ue000
60
Item\ue000 9.
\ue000Changes\ue000 in\ue000 and\ue000 Disagreements\ue000 with\ue000 Accountants\ue000 on\ue000 Accounting\ue000 and\ue000 Financial\ue000 Disclosure
\ue000\ue000103
Item\ue000 9A.
\ue000Controls\ue000 and\ue000 Procedures
\ue000\ue000103
Item\ue000 9B.
\ue000Other\ue000 Information
\ue000\ue000103
Part\ue000III
Item\ue000 10.
\ue000Directors,\ue000 Executive\ue000 Officers\ue000 and\ue000 Corporate\ue000 Governance
\ue000\ue000104
Item\ue000 11.
\ue000Executive\ue000 Compensation
\ue000\ue000104
Item\ue000 12.
\ue000Security\ue000 Ownership\ue000 of\ue000 Certain\ue000 Beneficial\ue000 Owners\ue000 and\ue000 Management\ue000 and\ue000 Related\ue000 Stockholder\ue000 Matters
\ue000\ue000104
Item\ue000 13.
\ue000Certain\ue000 Relationships\ue000 and\ue000 Related\ue000 Transactions,\ue000 and\ue000 Director\ue000 Independence
\ue000\ue000104
Item\ue000 14.
\ue000Principal\ue000 Accounting\ue000 Fees\ue000 and\ue000 Services
\ue000\ue000104
Part\ue000 IV
Item\ue000 15.
\ue000Exhibits,\ue000 Financial\ue000 Statement\ue000 Schedules
\ue000\ue000105
Signatures
\ue000\ue000119
\ue000
2
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Table\ue000 of\ue000 Contents
PART\ue000 I
\ue000
ITEM\ue000 1.
BUSINESS
Overview
Nalco\ue000 Holding\ue000 Company\ue000 is\ue000 the\ue000 global\ue000 leader\ue000 in\ue000 water,\ue000 energy,\ue000 air\ue000 and\ue000 process\ue000 technologies\ue000 and\ue000 services\ue000 that\ue000 deliver\ue000 savings\ue000 for\ue000 customers\ue000 and
improve\ue000 the\ue000 environment.\ue000 Our\ue000 principal\ue000 executive\ue000 offices\ue000 are\ue000 located\ue000 at\ue000 1601\ue000 West\ue000 Diehl\ue000 Road,\ue000 Naperville,\ue000 Illinois,\ue000 60563.

On\ue000 August\ue000 31,\ue000 2003,\ue000 Nalco\ue000 Holdings\ue000 LLC,\ue000 our\ue000 subsidiary\ue000 and\ue000 a\ue000 company\ue000 formed\ue000 by\ue000 The\ue000 Blackstone\ue000 Group,\ue000 Apollo\ue000 Management,\ue000 L.P.\ue000 and\ue000 GS
Capital\ue000 Partners\ue000 (the\ue000 \u201cSponsors\u201d),\ue000 entered\ue000 into\ue000 a\ue000 stock\ue000 purchase\ue000 agreement\ue000 pursuant\ue000 to\ue000 which\ue000 it\ue000 agreed\ue000 to\ue000 purchase\ue000 all\ue000 of\ue000 the\ue000 outstanding
shares\ue000 of\ue000 capital\ue000 stock\ue000 of\ue000 Ondeo\ue000 Nalco\ue000 Company\ue000 (which\ue000 is\ue000 now\ue000 known\ue000 as\ue000 Nalco\ue000 Company)\ue000 and\ue000 the\ue000 Nalco\ue000 International\ue000 SAS\ue000 Subsidiaries,
which\ue000 had\ue000 been\ue000 operated\ue000 as\ue000 a\ue000 single\ue000 business\ue000 unit,\ue000 from\ue000 subsidiaries\ue000 of\ue000 Suez\ue000 S.A.\ue000 (\u201cSuez\u201d\ue000 or\ue000 \u201cSeller\u201d).\ue000 The\ue000 Transactions\ue000 closed\ue000 on
November\ue000 4,\ue000 2003.\ue000 In\ue000 this\ue000 report,\ue000 we\ue000 refer\ue000 to\ue000 this\ue000 acquisition\ue000 as\ue000 the\ue000 \u201cAcquisition,\u201d\ue000 and\ue000 the\ue000 term\ue000 \u201cTransactions\u201d\ue000 means,\ue000 collectively,\ue000 the
Acquisition\ue000 and\ue000 the\ue000 related\ue000 financings\ue000 to\ue000 fund\ue000 the\ue000 Acquisition.

All\ue000 references\ue000 in\ue000 this\ue000 report\ue000 to\ue000 \u201cNalco,\ue000 \u201c\ue000 the\ue000 \u201cCompany,\u201d\ue000 \u201cwe,\u201d\ue000 \u201cour,\u201d\ue000 and\ue000 \u201cus\u201d\ue000 mean,\ue000 unless\ue000 the\ue000 context\ue000 indicates\ue000 otherwise,\ue000 (1)\ue000 Nalco
Holding\ue000 Company\ue000 and\ue000 its\ue000 subsidiaries\ue000 and\ue000 affiliates\ue000 on\ue000 a\ue000 consolidated\ue000 basis,\ue000 (2)\ue000 the\ue000 Predecessor,\ue000 and\ue000 (3)\ue000 the\ue000 Successor.\ue000 In\ue000 addition,\ue000 when\ue000 the
context\ue000 so\ue000 requires,\ue000 we\ue000 use\ue000 the\ue000 term\ue000 \u201cPredecessor\u201d\ue000 to\ue000 refer\ue000 to\ue000 the\ue000 historical\ue000 operations\ue000 of\ue000 the\ue000 Predecessor\ue000 prior\ue000 to\ue000 the\ue000 Acquisition\ue000 and
\u201cSuccessor\u201d\ue000 to\ue000 refer\ue000 to\ue000 our\ue000 historical\ue000 operations\ue000 following\ue000 the\ue000 Acquisition.

3D\ue000 TRASAR\u00ae,\ue000 ADOMITE\u00ae,\ue000 BrightWater\u00ae,\ue000 Clean\ue000 n\ue000 Cor\u00ae,\ue000 EXTRA\ue000 WHITE\u2122,\ue000 FREEFLOW\u00ae,\ue000 OxiPRO\u2122,\ue000 PARETO\u2122,\ue000 PORTA-FEED\u00ae,\ue000 RO TRASAR\u00ae,\ue000 SMART\ue000 Solutions\u00ae,\ue000 SULFA-CHECK\u00ae,\ue000 SurFlo\ue000 Certified\u00ae,\ue000 TIORCO\u00ae,\ue000 TRASAR\u00ae,\ue000 ULTIMER\u00ae,\ue000 UltraTreat\u00ae,\ue000 VALUELINE\u00ae, VANTAGE\u00ae,\ue000 and\ue000 certain\ue000 other\ue000 products\ue000 and\ue000 services\ue000 named\ue000 in\ue000 this\ue000 document\ue000 are\ue000 our\ue000 registered\ue000 trademarks\ue000 and\ue000 service\ue000 marks.

Our\ue000 programs\ue000 and\ue000 services\ue000 are\ue000 used\ue000 in\ue000 water\ue000 treatment\ue000 applications\ue000 to\ue000 prevent\ue000 corrosion,\ue000 contamination\ue000 and\ue000 the\ue000 buildup\ue000 of\ue000 harmful\ue000 deposits and\ue000 in\ue000 production\ue000 processes\ue000 to\ue000 enhance\ue000 process\ue000 efficiency,\ue000 extend\ue000 asset\ue000 life,\ue000 improve\ue000 our\ue000 customers\u2019\ue000 end\ue000 products,\ue000 and\ue000 enhance\ue000 air\ue000 quality. We\ue000 also\ue000 help\ue000 our\ue000 customers\ue000 reduce\ue000 energy,\ue000 water\ue000 and\ue000 other\ue000 natural\ue000 resource\ue000 consumption,\ue000 minimizing\ue000 environmental\ue000 releases\ue000 while\ue000 boosting their\ue000 bottom\ue000 line.\ue000 Together\ue000 our\ue000 comprehensive\ue000 solutions\ue000 contribute\ue000 to\ue000 the\ue000 sustainable\ue000 development\ue000 of\ue000 customer\ue000 operations.

Through\ue000 our\ue000 sales,\ue000 service,\ue000 research\ue000 and\ue000 marketing\ue000 teams\ue000 of\ue000 more\ue000 than\ue000 7,000\ue000 technically\ue000 trained\ue000 professionals,\ue000 we\ue000 serve\ue000 more\ue000 than\ue000 70,000
customer\ue000 locations\ue000 in\ue000 a\ue000 broad\ue000 range\ue000 of\ue000 end\ue000 markets,\ue000 including\ue000 aerospace,\ue000 chemical,\ue000 pharmaceutical,\ue000 petroleum,\ue000 steel,\ue000 power,\ue000 food\ue000 and
beverage,\ue000 medium\ue000 and\ue000 light\ue000 manufacturing,\ue000 marine\ue000 and\ue000 pulp\ue000 and\ue000 papermaking\ue000 industries\ue000 as\ue000 well\ue000 as\ue000 institutions\ue000 such\ue000 as\ue000 hospitals,\ue000 universities
and\ue000 hotels.\ue000 We\ue000 focus\ue000 on\ue000 providing\ue000 our\ue000 customers\ue000 with\ue000 sustainable,\ue000 technologically\ue000 advanced,\ue000 engineered\ue000 solutions\ue000 and\ue000 services.

We\ue000 have\ue000 an\ue000 established\ue000 global\ue000 presence\ue000 with\ue000 more\ue000 than\ue000 11,500\ue000 employees\ue000 working\ue000 in\ue000 130\ue000 countries,\ue000 supported\ue000 by\ue000 a\ue000 comprehensive\ue000 network\ue000 of manufacturing\ue000 facilities,\ue000 sales\ue000 offices\ue000 and\ue000 research\ue000 centers.\ue000 This\ue000 global\ue000 presence\ue000 provides\ue000 a\ue000 competitive\ue000 advantage\ue000 by\ue000 enabling\ue000 us\ue000 to\ue000 offer\ue000 a high\ue000 level\ue000 of\ue000 service\ue000 to\ue000 our\ue000 local,\ue000 regional\ue000 and\ue000 multinational\ue000 customers.

In\ue000 September\ue000 2008,\ue000 we\ue000 completed\ue000 the\ue000 sale\ue000 of\ue000 our\ue000 Finishing\ue000 Technologies\ue000 surface\ue000 treatment\ue000 business\ue000 to\ue000 Chemetall\ue000 Corp.,\ue000 a\ue000 subsidiary\ue000 of
Rockwood\ue000 Holdings,\ue000 Inc.\ue000 Proceeds\ue000 from\ue000 the\ue000 sale\ue000 were\ue000 $74.1\ue000 million,\ue000 net\ue000 of\ue000 selling\ue000 and\ue000 other\ue000 cash\ue000 expenses\ue000 of\ue000 $0.9\ue000 million,\ue000 and\ue000 resulted\ue000 in\ue000 a\ue000 pre-
tax\ue000 gain\ue000 of\ue000 $38.1\ue000 million.\ue000 A\ue000 plant\ue000 in\ue000 Jackson,\ue000 Michigan,\ue000 dedicated\ue000 to\ue000 the\ue000 Finishing\ue000 Technologies\ue000 business,\ue000 was\ue000 included\ue000 in\ue000 the\ue000 sale,\ue000 along

\ue000
3
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mashakkali

this is really very good report and a great task..........

reply03 / 27 / 2010
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