[However, tobacco litigation is not expected to affect the Kraft IPO.] The lawsuits are out in the open, ... This didn't just happen yesterday.

Because the litigation has become so much of what they are, the lawsuits tend to eclipse anything else they try to do. And if it goes bad for them with IBM, I doubt anything they do with software will be able to save them.

That's not expected. It doesn't really affect the operations but it's something nasty in the results anyway.

Philip Morris has done a good job running Kraft but they are still so involved that tobacco litigation is going to hold Kraft back a little bit.

So long as he leaves open the prospect of even further rate increases, however, he won't get it.

This is a case in which our supposed litigation program to encourage judicial restraint did not get off the ground, and should have,