mfc 2019s net sales decreased $ 322 million 5%.
 sales $ 345 million air missile defense fewer deliveries pac-3 lower volume thaad $ 85 million tactical missile fewer deliveries increased deliveries.
 higher sales $ 55 million energy solutions increased volume.
 operating profit decreased $ 62 million 5%.
 lower profit $ 100 million fire control lower risk retirements $ 65 million tactical missile fewer deliveries.
 offset higher profit $ 75 million increased risk retirements.
 $ 60 million lower 2015.
 decreased lower orders pac-3 hellfire jassm.
 higher orders pac-3 lantirn/sniper lower orders thaad.
 2019s net sales increase 2017.
 operating profit increase slightly.
 margin decline 2016 contract fewer risk retirements.
2015 acquired sikorsky rms.
 results financial results.
 consolidated reflect full sikorsky operations.
 rms design manufacture service support military civil helicopters ship submarine mission combat systems sensors rotary fixed-wing aircraft missile defense radar littoral combat ship simulation training services unmanned systems technologies.
 supports cybersecurity communication command control solutions.
 programs black hawk seahawk helicopters aegis combat system lcs space fence hawkeye radar tpq-53 radar ch-53k helicopter vh-92a helicopter.
 results.
 net sales $ 13462 $ 9091
 operating profit
 margin 6. 7%. 3%. 7%.
 backlog $ 28400
 net sales increased $ 4. billion 48%.
 higher net sales $.billion sikorsky acquired 6 2015.
 net sales sikorsky revenue adjustments.
 offset sales $ 70 million training


stock performance $ 100 invested 11/17/11 10/31/11 index reinvestment dividends.
 2015.
 delphi automotive s&p 500 return automotive russell 3000 auto parts index american axle borgwarner. cooper tire rubber dana holding. delphi dorman products. federal-mogul. ford motor. fuel systems solutions. general motors. gentex. gentherm. genuine parts. johnson controls. lear. lkq. meritor. standard motor products. stoneridge. superior industries tenneco. tesla motors. goodyear tire rubber. tower international. visteon. wabco holdings.
 index november.
 delphi automotive plc. 418.
 s&p 500.
 automotive supplier group..
 declared paid dividends $. 25 share 2014 2015.
 2016 increased dividend $ 1. 16 share quarterly dividend $. 29 share payable february 29 17.


citigroup repurchases from government entities.
 representations warranties depend on transaction buyer.
 market conditions credit-ratings requirements affect representations.
 breach representations warranties repurchase mortgage loans or indemnify investor insurer.
 repurchase reserve.
 repurchase company credit loss loans.
 representations warranties not subject to limits.
 contractual liability arises warranties breached loss breach.
 repurchase loan credit- impaired loan accounted for under sop 03-3.
 repurchases nonperforming loan statistics credit-impaired loans not included nonaccrual loans.
 company estimates exposure to losses repurchase loans probability repurchase make-whole estimated loss.
 calculated separately by sales vintage.year loans sold historical trends forecasted repurchases losses requests loan documentation repurchases make-wholes percentage claims success rate appealing claims unresolved claims estimated loss loss principal accrued interest foreclosure costs.
 estimation methodology historical experience trends reserve.
 loan documentation packages potential claim.
 requests outstanding claims increased.
 loss severity estimates increased macroeconomic factors experience.
 $ 493 million change estimate reserve.
 repurchase reserve calculated sales vintage.
 majority repurchases 2006 2007 vintages largest loss--repurchase.
 insignificant percentage prior 2006 expected decrease.
 improved repurchase loss-repurchase statistics 2008 2009 vintages.
 repurchase credit-impaired loan difference fair value unpaid principal balance utilization repurchase reserve.
 payments charged against reserve.
provision for losses from loan sales gain on sale included in consolidated statement income.
 liability for representations warranties estimated when loans updated quarterly.
 adjustment recorded in.
 activity repurchase reserve for years 31 2009 2008.
 balance $ 75 $ 2
 additions new sales 33
 change estimate
 utilizations -119
 balance end year $ 482 $ 75
 goodwill represents company acquisition cost over fair value assets.
 subject to annual impairment tests allocated to reporting units impairment if exceeds fair value.
 goodwill allocated fair.
 intangible assets amortized over estimated useful lives.
 not amortized subject to tests.
 if exceeds fair value.
intangible assets amortization impairment recognized amount exceeds value.
 loans deferred tax equity investments interest fees premises equipment-user derivatives repossessed assets.


indemnification obligations arise under arrangements predecessor companies.
 pnc subsidiaries provide indemnification to directors officers employees agents against liabilities pnc subsidiaries.
 advance individuals costs claims undertakings repay if entitled indemnification.
 responsible for similar indemnifications obligations officers directors at acquisition.
 advanced costs.
 to determine aggregate potential exposure obligation.
 visa indemnification payment services business acquires credit debit card transactions through.
.
.
 october 2007 restructuring issued shares visa.
 members.
 received share of visa.
 common stock members.
 obligated to indemnify visa for judgments settlements litigation.
 acquisition national city party to judgment loss sharing agreements with visa banks.
judgment loss sharing agreements responsibilities adverse judgment settlements litigation.
 2012 visa funded $ 150 million escrow account reduced conversion rate visa shares.
 indemnify visa judgments settlements exposure visa litigation.
 pnc sold residential home equity loans securitization continuing involvement.
 recourse loan repurchase obligations transferred assets.
-family loans fnma.
 participated similar program fhlmc.
 assume one-third risk loss unpaid principal balances.
 2011 unpaid principal balance $ 12. 8 billion $ 13. 0 billion.
 maximum exposure $ 3. 9 billion $ 4. billion 2011.
 reserve losses.
 $ 43 million $ 47 million consolidated balance sheet.
payment required programs contractual interest collateral loans losses value losses.
 exposure activity recourse obligations corporate institutional banking.
 table 154 analysis commercial mortgage recourse obligations.
 millions
 january $ 47 $ 54
 reserve adjustments
 losses 2013 loan repurchases settlements
 december 31 $ 43 $ 47
 residential home equity repurchase obligations non repurchase obligations investors.
 origination covenants representations warranties.
 first second-lien non-agency loan sale transactions.
 pnc financial services group.
 2013 form


seek recovery fuel surcharge programs expand fuel conservation efforts.
 capital plan expect capital investments $ 2. 8 billion revised laws affect returns.
 item 7 liquidity capital resources 2013 capital plan.
 expectations cautious economic environment anticipate pricing opportunities network improvement increased productivity 2009.
 revenues 2006 change.
 freight revenues $ 17118 $ 15486 $ 14791 11% 11 % 5% 5 %
 revenues
 $ 17970 $ 16283 $ 15578 10% 10 % 5% 5
 freight revenues six commodity groups.
 vary volume revenue.
 price traffic mix fuel surcharges.
 incentives volumes shipping reduction freight revenues shipments.
 recognize freight revenues percentage-of- completion.
 allocate revenues transit time recognize expenses.
revenues include subsidiaries commuter rail accessorial revenues equipment additional services.
 obligations.
 freight revenues five commodity groups increased 2008 growth agricultural energy.
 chemical industrial grew hurricanes gustav ike reduced.
 automotive declined.
 fuel cost recoveries core pricing improvement.
 recoveries include surcharge revenue resetting base fuel price.
 economic downturn compounded declining volumes.
 fewer intermodal automotive industrial chemical shipments growth agricultural energy.
 fuel surcharge programs generated $ 2. 3 billion freight revenues 2008.
 revenue mileage-based fuel surcharge programs 2007.


ppg annual report form 10-k.
 2012 initiated lump sum payout program participants.
 option one-time lump sum cash payment annuity.
 2017 paid $ 87 million lump sum benefits participants.
 payments 2017 service interest costs remeasured benefit obligation settlement charge $ 35 million $ 22 million after-tax.
.
 non-qualified pension quarter 2017 lump-sum payments retirees.
 non-qualified pension plan $ 40 million.
 payments excess 2017 costs remeasured benefit obligation settlement charge $ 22 million $ 14 million after-tax.
 managed local laws regulations benefits.
 investment committees oversee management assets third party asset managers.
 assets held managed asset managers.
 mandate committee asset allocation targets.
 performance monitored.
pension plan assets invested earnings benefits risk.
 asset allocation targets diversify investments asset categories securities mitigate risk provide liquidity pension benefits.
 average pension plan asset allocation december 31 2018 2017 plans.
 category
 equity securities 15-45% %
 debt securities 30-65% 30-65 % )
 real estate 0-10% 0-10 %
 20-40% ( 20-40 %


intangible assets allied 2019s revenue profits include customer relationships franchise agreements municipal agreements non-compete agreements trade names.
 fair values reflected in previous table.
 other assets components of property equipment goodwill.
 including airspace at allied 2019s landfills going concern element business workforce.
 represents business higher return on net assets.
 portion going concern element represented by allied 2019s infrastructure market-based collection routes waste transfer disposal channels value included in goodwill.
 assets acquisition not deductible income tax.
 consolidated financial statements include operating results allied acquisition.
 merger completed january 1 2007.
 illustrative not indicative results future results.
 cost savings costs integration consolidation acquisition.
 year ended december 31.
december 31 2008 31 2007
 revenue $ 9362. $ 9244.
 net income 285. 423.
 earnings per share. 76.
 diluted earnings per share. 75.
 information adjustments amortization assets discounts debt environmental self-insurance liabilities capping obligations amortization income taxes.
 merger department justice divest assets liabilities.
 classified sale balance december 31 2008.
 adjusted estimated fair values less costs asset impairment loss $ 1. 8 million $ 6. 1 million consolidated statements december 2009 2008.
 assets recorded estimated fair values.


goldman sachs group.
 subsidiaries 2030 deduction goodwill assets deferred tax liabilities goodwill $ 3. 67 billion 2017 2016 intangible assets $ 373 million $ 429 million deferred tax liabilities $ 704 million $ 1. 08 billion.
 2030 deduction nonconsolidated institutions thresholds.
 decrease 2016 reductions investments.
 deduction aggregate investments excluding extended conformance.
.
 2014 regulation rule.
 adjustments overfunded defined benefit pension plan obligation deferred tax liabilities disallowed deferred tax assets credit valuation adjustments debt valuation adjustments risk-based deductions.
 2030 subordinated debt.
 maturity five years.
 2 capital reduced maturity five years.
 note 16.
 note 20 transitional capital ratios 2017 2016.
 banking.
 amendments capital framework.
 federal bank approved rule supplementary leverage ratio.
 compares 1 capital leverage exposure daily assets off-balance-sheet exposures deductions.
 requires minimum leverage ratio 5. 0%. 3. 2. buffer.
 january 1 2018.
 supplementary leverage ratio calculated phased-in basis.
 three months.
 1 capital $ 78227 $ 81808
 total assets $ 937424 $ 883515
 deductions -4572
 assets 932852 878618
 off-balance-sheetexposures
 supplementary leverage exposure $ 1341016 $ 1270173
 5. 8%. 6. 4%. 4 %
 off-balance-sheet exposures derivatives securities financing commitments guarantees.
 capital separate regulation capital requirements jurisdictions.
.
gs bank usa capital requirements bhcs ratios risk-based capital leverage requirements state banks.
 note 20 financial statements capital ratios minimum ratios.
 goldman sachs 2017 form 10-k 73


jpmorgan chase co. annual report 103 risk derivatives portfolio.
 firm 2019s risk management process wrong-way risk increased correlation exposure counterparty credit quality.
 factors influence correlations.
 firm adjust cva avg.
 manages exposure credit transactions interest rate foreign exchange equity commodity derivative transactions.
 graph shows exposure profiles 2019s derivatives portfolio next 10 years peak dre avg metrics.
 exposure first year no new trades.
 exposure profile derivatives measures december 31 2016 billions table summarizes ratings profile derivative counterparty firm 2019s derivative receivables.
 ratings scale based firm 2019s internal ratings s&p moody 2019s.
 ratings profile derivative receivables 2016 2015 31 exposure net collateral % collateral.
aaa/aaa to aa-/aa3 $ 11449 28% 28 % ) $ 10371 24% 24 % )
 a+/a1 to a-/a3 8505 20 10595 25
 bbb+/baa1 to-/baa3 13127 32 13807
 bb+/ba1 to b-/b3 7308 18 7500 17
 ccc+/caa1 984  824
 $ 41373 100% 100 % ) $ 43097
 prior period amounts revised current.
 firm uses collateral agreements mitigate credit risk.
 transactions 2014 90% 90 % ) december 31 2016 unchanged 87% 87 % december 2015.
 market-maker credit risk.
 note 6.
 mitigate credit risk traditional lending.
 table.
 note 6.
firm uses credit derivatives exposures including credit risk securities market-making businesses.
 not included in credit portfolio management information see derivatives note 6.


2022 derivative losses $ 13 million.
 risk solutions advisor insurance reinsurance broker risks negotiation insurance.
 partners benefits talent financial challenges business performance human capital retirement investment management health care compensation talent management strategies.
.
 years december 31, 2011 2010
 revenue $ 6817 $ 6423 $ 6305
 operating income 1314 1194 900
 operating margin 19. 3%. 6%. 3%.
 demand property casualty insurance rises economic activity increases falls decreases commissions fees.
 employment corporate revenue asset values.
 2011 improvement pricing market.
 premium rates decrease commission revenues increased competition underwriting capacity.
 changes premiums insurance brokerage industry premiums.
 2011 pricing stabilization retail reinsurance brokerage trend 2012.
2008 2011 faced conditions disruptions global economy credit risk deterioration financial markets.
 reduced demand brokerage products operational results.
 risk solutions generated 60% revenues 2011.
 fees commissions insurance investment income.
 revenues vary renewals business services influenced interest rates.
 operate competitive industry compete insurance brokerage firms brokers agents writers.
 address product development risk management needs commercial enterprises professional groups insurance companies governments health care providers non-profit groups provide products professional liability life disability


7.
 management financial condition results operations paper results 2005 impacted higher costs en ergy wood soda raw materials reduced profits $ 586 million.
 lower sales volumes negative lack-of-order downtime.
 paper containerboard mills paper machines.
 impacts operational improvements manufacturing average pricing favorable product mix higher earn forestland real estate sales.
 operating first quarter flat 2005.
 sales volumes slow.
 price realizations improve.
 energy wood raw material price movements impact flat.
 positive 2006.
 demand north america uncoated paper industrial packaging stronger realize 2005 fourth-quarter 2006 first-quarter price increases.
 operating rates improve 2006 capacity reductions.
 reductions natural gas southern wood costs operations.
 evaluating options sale spin-off businesses decisions 2006.
improve operations north america uncoated packaging reduce costs improve products profitability.
 profits paper performance.
 costs efficiencies prices volumes.
 profits defined before taxes minority interest corporate special items.
 commission non-gaap not alternatives net income.
 paper operates six segments print papers industrial packaging consumer packaging distribution forest products specialty businesses.
 table shows net earnings last three years millions 2005 2004 2003.
 profits $ 1923 2040 1734
 corporate items -597 -469 -466
 corporate special items -147 -142 -281 281
 interest expense net -593 -710 -705
 minority interest -12 -80
 income tax benefit
 discontinued operations -491
 accounting changes
earnings $ 1100 302
 items restructuring losses insurance recoveries reversals reserves.
 profits $ 117 mil lower 2005 energy raw material costs 586 lower sales volume 251 million rates 27 prices $ 478 million cost reduction improved performance product mix 235 million higher earnings land sales $ 158 million.
 divestitures $ 32 million items $ 36 million negative.
 profit


revenue per car 2008 2007 2006 change.
 agricultural $ 3352 $ 2888 $ 2584 16 % 12% 12 %
 automotive 1766 1710
 chemicals 2818 2464 2326
 energy 1622 1363 1285
 industrial products 2620 2322 2167
 intermodal 847
 $ 1848  $ 1591 $ 1501 16 % 6%
 agricultural products price improvements fuel surcharges volume growth higher agricultural freight revenue 2008 2007.
 demand grain weak dollar corn wheat food.
 ethanol co products increased.
 price increases agricultural freight revenue 2007 decline volume.
 whole grains declined rates navigation.
 wheat food improved.
 ethanol co-products increased.
declines freight revenue.
 price fuel surcharges offset volumes.
 manufacturers sales reduced production recessionary economy reduced.
 parts supplier strike reduced volume.
 decreased 23%.
 price increases automotive revenue lower shipments.
 production.
 parts shipments grew increased volumes new business intermodal train service mexico.
 agricultural revenue automotive revenue


management liquidity risk financial institutions.
 recent failures due insufficient liquidity.
 firm liquidity funding policies-specific industry liquidity events.
 objective fund firm enable businesses revenues adverse.
 manage liquidity risk excess.
 maintain liquidity cash outflows collateral needs stressed.
 asset-liability management.
 assess holding periods liquidity.
 manage maturities diversity funding markets products maintain liabilities asset base.
 contingency funding plan.
 liquidity crisis stress.
 business activity.
.
 excess pre-fund cash collateral needs liquidity crisis hold liquidity unencumbered liquid securities cash.
 securities convertible to cash obligations without assets funding markets.
 december 2012 2011 fair value securities overnight cash deposits totaled $ 174. 62 billion $ 171. 58 billion.
internal liquidity risk model financial markets firm liquidity position december 2012 appropriate.
 table fair value securities overnight cash deposits.
 year.
. dollar-denominated $ 125111 $ 125668
. dollar-denominated
 $ 172095 $ 165959
.
 excess unencumbered.
 government federal agency obligations.
 overnight.
 cash deposits.
.
 excess unencumbered german french japanese united kingdom government obligations overnight cash deposits liquid currencies.
 limit excess liquidity defined list securities cash.
 include other sources excess liquidity less liquid unencumbered securities credit facilities.
 2012 annual report


machine tooling manufacturing replacements distribution equipment.
 capital spending replacement enterprise management systems corporate headquarters research development facilities kenosha wisconsin.
 snap-on believes cash credit facilities capital expenditure 2013.
 2010 acquired 40% interest asia manufacturing. purchase price $ 7. million $. 1 million transaction costs acquired 60% interest 2008.
 note 2 financial statements.
 net cash $ 127. million 2012.
 $ 293. 7 million 2011 2011 repayment $ 200 million unsecured. notes.
 2010 sold $ 250 million. notes discount $ 247. million proceeds. corporate purposes working capital expenditures repayment 200 million. notes 2011 financing finance contract receivables.
 2010 repaid $ 150 million unsecured floating rate debt maturity.
stock purchase option $ 46. 8 million 2012 $ 25. 7 million 2011 $ 23. 7 million 2010.
 snap-on stock repurchases offset dilution.
 2012 repurchased 1180000 shares $ 78. 1 million.
 repurchase $ 180. 9 million.
 purchase discretion subject conditions.
 repurchased 628000 shares $ 37. 4 million 2011 152000 shares $ 8. 7 million 2010.
 cash share repurchases.
 paid quarterly cash dividends since 1939.
 2012 2011 2010 $ 81. 5 million $ 76. 7 million $ 71. 3 million.
 increased quarterly cash dividend. 8% to $ 0. 38 per share $.
 dividends 2012. 38 fourth 34 first three quarters.
 2011 $. 34. 3230 share.
 quarterly dividends 2010 $. 32 fourth quarter $. 30 first three quarters $ 1. 22 share.
 2012 2011
 dividends common share $ 1. 40 $. 30 $. 22
 prior-year retained earnings 4. 4% 4. 4 %. 7%. 7 %.
. cash operations credit facilities pay dividends 2013.
 obligations no off-balance-sheet arrangements 2012 year end.
 report


product offerings include active index strategies.
 returns market risk profile.
 fundamental research quantitative models.
 index strategies returns.
 include non-etf products ishares.
.
.
 institutional non-etf index assignments large low fee rates.
 net flows.
 2014 equity aum $ 2. 451 trillion increased $ 133. 4 billion new business $ 52. 4 billion market appreciation foreign exchange movements $ 81. billion.
 inflows driven $ 59. 6 billion $ 17. 7 billion ishares non-etf index accounts.
 inflows offset outflows $ 24. 9 billion outflows $ 18. billion $ 6. billion equity products.
 fee rates fluctuate.
 half equity tied international markets higher fee rates.
.
fluctuations equity markets.
 blackrock 2019s equity fee rates revenues.
 ended 2014 $ 1. 394 trillion increasing $ 151. 5 billion 12% from 2013.
 $ 96. 4 billion new business $ 55. 1 billion market appreciation foreign exchange movements.
 new business diversified flows high yield products.
 funds inflows $ 13. 3 billion $ 4. 2 billion. high yield bond.
 income inflows positive across styles inflows $ 40. billion $ 28. 7 billion $ 27. 7 billion.
 balanced funds bespoke mandates equities currencies bonds commodities risk management.
 long-only portfolios alternative investments tactical asset allocation overlays.
 changes-asset class 2014.
.

 asset allocation balanced 169604 18387
 target date 111408 -872 128611
 fiduciary 60202 -474 14788 -8322 66194
 multi-asset 341214 28905 21044 -13326 377837
 $ 15. 1 billion 52% inflows institutional clients.
 contributed $ 12. 8 billion asset business target risk.
 retail inflows $ 13. 4 billion multi- asset income fund $ 6. 3 billion.
-asset strategies 2022 asset allocation balanced products 48% new business $ 18. 4 billion.
 equity fixed income alternative components.
 risk diversification derivatives.
 products global allocation-asset income suites.
 2022 products grew 10% 2014.
investors represented 90% target date risk defined contribution plans 80%.
 remaining 10% retail investments.
 driven investments lifepath retirement income.
 asset allocation model risk return retirement timing.
 2022 fiduciary management services sponsors responsibility.
 partnership clients investment staff trustees strategies risk budgets return objectives.


tower corporation subsidiaries financial statements 2014 adopted disclosure provisions sfas.
 123 amended.
 148 note 1.
 value option grant estimated black-scholes option pricing model.
 average values options 2004 2003 2002 $ 7. 05 $ 6. 32 $ 2. 23 per share.
 assumptions.
 risk-free interest rate 4. 23%. %. 53%. %
 option grants 4
 volatility stock 80. 6%. 6%. 3%. 3 %
 dividends voluntary option exchanges 2004 issued employees 1032717 options exercise price $ 11. 19 per share.
 issued voluntary option exchange program 2003 accepted options $ 10. 25 purchase 1831981 shares common stock.
program offered full part-time employees excluding executive officers directors grant new options two shares common stock three surrendered.
 no options granted employees between cancellation new grant date.
 may 2002 company issued employees 2027612 options exercise price $ 3. 84 per share fair market value.
 options issued voluntary option exchange program october 2001 accepted surrender options purchase 3471211 shares common stock.
 part-time employees officers new options.
 no options granted between cancellation new grant date.
 atc mexico stock option plan maintains stock option plan atc mexico subsidiary.
 issuance options to officers employees directors consultants.
 limits stock 360 shares capital structure.
 2002 granted options to purchase 318 shares common stock to officers employees.
options issued price $ 10000 per share.
 fair market board independent appraisal.
 atc mexico plan options 2002 $ 3611 per share black-scholes option pricing model.
 options exercised 2004.
 no granted 2004 2003 december 31 2003.
.


consolidated financial statements tax adopted fin 48 2007.
 statements.
 reconciliation unrecognized tax benefits.
 balance january 1 2007 $ 53
 additions additions reductions
 settlements
 balance december 31 2007 $ 70
 $ 57 million unrecognized tax benefits tax rate.
 positions twelve months.
 recognizes interest penalties unrecognized benefits.
 penalties less $ 1 million 2007.
 december 31 liability penalties interest $ 1 million $ 7 million.
 income tax returns.
 federal state international jurisdictions.
 concluded.
 federal income tax matters 2004.
 service examination.
 tax returns 2005 2006.
.
 tax examinations concluded 2002.
 concluded examinations jurisdictions.


maintained strong financial position fiscal year 2019.
 30 consolidated balance sheet included cash $ 2248.
 access commercial paper markets cash flows operating financing meet liquidity needs.
 30 $ 971. 5 foreign cash total $ 2248. 7
 foreign subsidiaries affiliates earnings.
 income tax repatriation.
 foreign withholding taxes.
 investment plans outside. intent reinvest majority foreign cash items additional taxes.
 note 23 income taxes.
 table summarizes cash flows operating investing financing activities.
 operating $ 2969. 9 2547.
 investing.
 financing activities -1370. -1359
 fiscal year 30 september 2019 cash $ 2969. 9.
 continuing operations $ 1760.adjusted depreciation amortization deferred income taxes tax act facility closure undistributed earnings gain sale share-based compensation noncurrent capital lease receivables adjustments.
 sale $ 14. high gases.
.
 capital cash $ 25. $ 69. trade receivables $ 41. payables accrued liabilities offset $ 79. receivables.
 $ 48. decrease accrued utilities $ 30. decrease accrued interest $ 51. increase advances equipment.
 decrease contract modification lower utility costs.
 cash $ 79. forward exchange contracts value added taxes.
 fiscal year 2018 cash operating activities $ 2547. income operations $ 1455.
 adjustments 131. $ 54. net impact remeasurement intercompany transactions.
 hedging instruments capital adjustment receivables.
adjustments impacted cash cross currency swap $ 54. excess pension expense $ 23.
 working capital accounts cash $ 265. driven payables accrued liabilities inventories trade receivables offset.
 $ 277. decrease customer advances $ 145. sale equipment $ 67. contracts.
 purchase helium molecules.
 noncash impact change accounting.
 fifo.
 cash $ 128. 3 contracts.


.
 restructuring reduction charges 2013 2012.
 consolidated income statements. excluded income.
 fourth quarter expense $ 231. $ 157. after-tax $. 74 per share cost structure market conditions.
 include $ 100. asset actions $ 58. final settlement long-term take-or-pay contract impacting electronics business photovoltaic light-emitting diode markets.
 $ 71. severance benefits contractual obligations elimination 700 positions executive changes.
 impact merchant gases businesses corporate functions.
 business conditions reorganization operations senior executive changes.
 completed end fiscal 2014.
 charges $ 61. merchant gases $ 28. tonnage gases $ 141. electronics performance materials $ 1. equipment energy.
 carrying amount 2013 plan 30.
 $ 71. 231
 pension liability..
 noncash expenses 2014.
 cash expenditures -3. -58
 currency translation adjustment.
 accrued balance $ 62.
 expense $ 327. $ 1. share restructuring cost reduction polyurethane intermediates electronics merchant businesses.
 second quarter expense $ 86. 8 60. 28 share stranded costs homecare reorganization merchant european cost structure.
 $ 77. 3 merchant gases $ 3. 8 tonnage gases $ 5. 7 electronics materials.
 actions completed.
 fourth quarter pui costs net expense $ 54. 6 $ 34. $. 16 per share.
 sold assets rights supply contract $ 32. 7.
 expense $ 26. 6.
 remaining charge contract terminations environmental liability.
 pui production facility pasadena texas dismantled completion 2014.
 costs dismantle tonnage gases.
 fourth quarter 2012 assessment pv market $ 186. expense $ 127. after-tax $. 59 per share electronics performance materials.
 market bulk-site gases silane.
 capacity silane demand.
 $ 93. long-term contract purchase silane.
 final settlement supplier fourth quarter 2013.


term company uses employee exercise option expiration data black-scholes grant-date valuation.
 believes best estimate term new option employees exhibit similar behavior.
 risk-free interest rate yield zero-coupon.
 treasury securities term risk-free interest rate.
 dividend yield calculated annualizing cash dividend dividing closing stock price grant.
.
 cash dividends not paid options restricted stock units.
 granted restricted stock awards.
 entitle voting nonforfeitable dividend rights grant.
 stock-based compensation based on value awards.
 forfeitures estimated grant revised differ.
 201cforfeitures distinct unvested portion surrendered stock-based award.
 annual rate 5. 0%. unvested stock-based awards as november 2 2019.
 re-evaluated quarterly forfeiture rate adjusted.
expense recognized vesting period awards.
 stock-based compensation expense.
 2018
 cost sales $ 20628 $ 18733 12569
 research development 75305 81444
 selling marketing administrative 51829 50988
 special charges
 stock-based compensation expense $ 150300 $ 151165 104188
 november 2 2019 3 2018 company capitalized $ 6. 8 million $ 7. 1 million stock-based compensation.
 adopted.
 excess tax benefits deficiencies income.
 recorded excess tax benefits $ 28. 7 million $ 26. 2 million 2019 2018 stock-based compensation payments.
 tax deficiencies.
 recorded excess expense.
 sufficient apic pool tax deficiencies deficiencies affect results operations.
.


consumer lending 65% citi holdings citigroup north american mortgage business retail partner cards western european cards retail banking citifinancial north america primerica student loan corporation finance businesses.
 $ 358 billion assets $ 317 billion north america.
 one-half assets.
 mortgages citimortgage citifinancial.
 assets residential mortgage loans retail partner card loans student loans personal loans auto commercial real estate loans.
.
.
.
.
 net interest revenue $ 13709 $ 17903 $ 18166
 non-interest revenue 5473
 interest expense $ 19182 $ 24453 26750
 operating expenses $ 10431 $ 14973 11457 31%
 net credit losses $ 19237 $ 13151 6794 46% 94%
credit reserve 5904 8592 5454
 benefits claims 1055 1191 765
 unfunded lending commitments 2014
 loan losses benefits claims $ 26199 $ 22934 $ 13013 14% 76%
 operations before taxes $ -17448 -13454 $ 2280 30 %
 taxes -7405 -5200
 operations $ -10043 -8254 $ 1712 22 %
 income noncontrolling interests 32 34 65 %
 income loss -10075 -8266 1678
 assets $ 390 $ 461 $ 496 7 %
 credit losses average loans 5. 91%. 91 %. 56%. 56 %. 90%. %
.
 interest expense decreased 22% lower net interest revenue.
interest revenue 23% lower lower balances de-risking spread compression.
 decreased 63 points delinquencies interest write-offs loan modification fdic charges card act.
.
 $ 50 to $ 150 million.
.
 loans decreased 12% north america 11% international 19%.
 non-interest revenue decreased $ 1. 1 billion credit losses.
 operating expenses declined 30% lower volumes re-engineering goodwill write-offs $ 3. billion costs.
 provisions loan losses increased 14% credit losses $ 6. 1 billion lower reserve builds $ 2. 7 billion.
 losses $ 3. 6 billion residential real estate lending. billion retail cards.
 assets decreased $ 58 billion lower originations wind-down asset sales divestitures write-offs higher loan loss reserve balances.
divestitures 2009 card italy finance portugal norway.
.
 expense decreased 9% non-interest revenue.
 interest declined 1%.
 loans increased 3% revenues declined lower balances de-risking spread compression.
 non-interest revenue decreased $ 2 billion securitization-to-market mortgage.
 operating expenses increased 31% goodwill write-offs $. billion restructuring costs.
 increased.


expense capital lease obligations $ 1. 7 million 2013 2012 $ 1. 5 million 2011.
 enforceable 2013.
 amounts management estimates assumptions.
 payments may vary.
 purchase orders excluded.
 consolidated balance sheets accounts payable accrued liabilities.
 obligations relate purchase agreements fiber energy purchases one to 15 years.
 purchase commitments.
 2014 120971
 2015
 2016
 2017
 2018
 $ 207666
 purchased $ 61. 7 million $ 27. 7 million $ 28. 5 million 2013 2012 2011.
 increase commitments 2014 acquisition boise fourth quarter 2013.
 environmental liabilities costs uncertain unknown cleanup costs governmental laws regulations costs alternative cleanup technologies.
1994 through 2013 remediation costs mills plants totaled $ 3. 2 million.
 december 31 2013 $ 34. 1 million environmental-related reserves balance sheet.
. $ 26. 5 million asset retirement obligations $ 7. 6 million other environmental contingencies.
 recorded $ 7. 8 million liabilities 201d $ 26. 3 million long-term liabilities.
 estimates costs.
 estimates may change.
 future environmental expenditures remediation obligations above $ 34. 1 million financial condition results operations cash flows.
 third parties.
 tort environmental.
 material liabilities guarantee indemnification financial assurance.
.


jpmorgan chase. annual report five-year stock performance compare five-year return.
 return s&p 500 index kbw bank index financial index.
 500.
 equity benchmark companies economic sectors.
 kbw bank index performance banks thrifts traded.
 24 national regional banks thrifts.
 s&p financial index 85 companies components s&p 500.
 three industry indices.
 simultaneous investments $ 100 december 31 2009 jpmorgan chase common stock.
 dividends reinvested.
.
 jpmorgan chase 100. 102. 81. 111 152 167.
 kbw bank index. 123. 94. 125. 173. 189.
 s&p financial index. 119 162 186
 s&p 500 index. 117 136 180.


goldman sachs group.
 subsidiaries management table presents average monthly assets class.
 billions 2017 2016 2015.
 2015
 alternative investments $ 162 $ 149 $ 145
 equity 292  256 247
 fixed income 633 578 530
 long-term 1087  983 922
 liquidity products 330 326 272
 $ 1417 $ 1309 $ 1194
.
 2017 higher asset prices appreciation equity fixed income.
 long- term assets increased income.
 offset outflows liquidity products.
 mix assets shifted liquidity long-term assets.
 asset prices decline net revenues.
 market conditions improved higher asset prices appreciation equity fixed income.
 assets increased liquidity products.
 long-term liquidity products.
mutual funds.
.
 revenues $ 6. 22 billion 7% higher management fees revenues.
 assets increased 115 billion $ 1. 49 trillion.
 assets 128 billion market appreciation $ 86 billion equity fixed income inflows 42 billion.
 liquidity products decreased 13 billion 3 billion.
 operating expenses $ 4. 80 billion 3% 3 % higher compensation benefits expenses.
 pre-tax earnings $ 1. 42 billion higher.
 revenues $ 5. 79 billion 7% 7 % lower 2015.
 lower fees.
 management fees assets.
 assets increased 127 billion $ 1. 38 trillion.
 long-term assets increased 75 billion inflows 42 billion market appreciation $ 33 billion.
 liquidity products increased 52 billion.
 operating expenses.billion 2016 4% lower 2015 decreased compensation expenses revenues.
 pre-tax earnings 1. 13 billion 17% lower 2015.
 25 revenues-tax earnings.


contents tceq harris county pollution control services department houston terminal.
 outstanding noe tceq vn hcpcs excess emissions tank 003 hurricane harvey.
 working with authorities resolve.
 item 4.
 mine safety disclosures item 5.
 market registrant 2019s common equity stockholder matters issuer purchases equity securities common stock trades nyse trading symbol 201cvlo. 201d january 31 2019 5271 holders.
 dividends considered quarterly board paid approved depend financial condition results cash flows prospects industry conditions capital requirements factors.
 no assurance dividend.
 table discloses purchases common stock fourth quarter 2018.
 purchased average price paid not purchased plans dollar value.
october 2018 939957 $ 87. $ 2. 7 billion
 november 3655945 $. 216469 3439476 $ 2. 4 billion
 december 3077364 $. $ 2. 2 billion
 7673266 $. 229817 7443449 $ 2. 2 billion
 shares fourth quarter 2018 open-market employees stock options restricted stock.
 january 23 2018 board authorized $ 2. 5 billion common stock 2018 remaining $ 2. 5 billion program 2016.
 fourth quarter purchases.
 december 31 $ 2. 2 billion 2018.


17.
 losses pmi's net taxes.
 earnings millions 2017 2016
 currency translation adjustments $ -5761 -6091 -6129 ( 6129
 pension benefits ( ( 3565 -3332 (
 derivatives hedges
 losses $ -8535 ( $ -9559 ( -9402 (
 reclassifications tax impact consolidated statements december 31 2017 2016 2015.
 $ 2 million $ 5 million $ 1 million net currency translation adjustment gains losses transferred marketing administration research costs liquidation subsidiaries.
 note 13.
 benefit plans 15.
 financial instruments pmi's pension benefits.
.
 tobacco-related litigation proceedings pending against subsidiaries indemnitees.
indemnitees include distributors licensees others parties agreed to defend pay costs judgments.
 distribution agreement between altria group.
 pmi pmi indemnify altria philip morris usa.
.
 subsidiary for tobacco product claims products pmi pmi pmi excluding pmi.
 adverse developments in cases against us subsidiaries.
 unfavorable outcome encourage additional litigation.
 damages tobacco significant range into billions.
.
 variability in pleadings experience monetary relief little to ultimate outcome.
 tobacco-related litigation early stages uncertainty.
 successful in defending tobacco-related litigation.
 record provisions in financial statements for litigation unfavorable outcome probable loss.
possible unfavorable outcome management concluded probable loss incurred in pending tobacco-related cases unable estimate possible loss no estimated loss accrued in financial statements for unfavorable outcomes.
 legal defense costs expensed incurred.


7.
 management financial condition results operations historical results audited financial statements notes.
 april 12 1999 pca acquired containerboard corrugated products business pactiv corporation 201cgroup formerly tenneco packaging. wholly owned subsidiary tenneco.
 operated division pactiv not separate entity.
 1999 pca significant operations.
 acquisition accounted historical values assets.
 purchase accounting not applied change control participating veto rights pactiv.
 results operations december 31 2005 2004 results.
 net sales $ 1993. 7 $ 1890. 1 $ 103. 6
 income before interest taxes $ 116. 1 $ 140. 5 -24. 4 24.
. 1 28. 6 29. 1. 5
 before taxes 88. 110. 9. 9 22. 9
income taxes. 4 35. 2. 6. 8
 income $ 52. 6 68. 7. 1 16.
 net sales increased $ 103. 6 million 5. 5%. 31 2005 2004.
 prices volumes corrugated products.
 increased 4. 2%. 31. 2 billion square feet 2005 29. 2004.
-per-workday sales increased 4. 6%. 2005.
 acquisition 3. 0%. higher 3. 4%. 4 % compared 2004.
.
 increase 2005 less workday 250 2004.
 containerboard sales volume decreased 12. 2%. 417000 tons 31 2005 475000 tons 2004.


market price dividends company common shares trading new york stock exchange.
 table high low sales prices common stock dividend paid per share.
 cash dividends expected future.
 january 29 2003 company declared quarterly cash dividend $. 455 per share payable february 28 2003 shareholders february 14 2003.
 quarter 2002 high low dividend
 31 25. 84 21. 50. 455 24. 80 22.
 30 28. 21. 26.
 28. 25. 46 24. 22.
. 25.


compares shareholder return common stock standard 500 composite stock index industrials consumer durables index 2007 2012 closing price common stock $ 16. 66.
 assumes investments $ 100 2007 common stock indices reinvestment dividends.
 graph 2007 2008 2012 s&p 500 index consumer durables apparel index value $ 100 investment 2007 common stock 500 durables apparel reinvestment dividends.
 $ 55. $ 71. 67.
 s&p 500 index $ 63. $ 79. $ 91. $ 93. $ 108.
 s&p industrials index $ 60. $ 72. 92. 91. 105.
&p consumer durables apparel index $ 66. $ 90. 118. 127. $ 154.
2007 authorized purchase 50 million shares stock.
 2012 repurchase 24 million shares.
 first quarter 2012 repurchased retired one million $ 8 million 2012.
 purchased since march 2012.


anticipates effective tax rate 2017 32% 35% 35 % ).
 business portfolio actions economic environment tax legislation currency fluctuations deferred tax assets stock price taxing jurisdictions cause rate.
 arconic 2019s operations three segments global products engineered products transportation construction solutions.
 performance evaluated primary measure after-tax operating income.
 impact lifo inventory accounting metal price lag interest expense noncontrolling interests corporate expense depreciation amortization restructuring charges intersegment profit eliminations differences tax rates foreign currency transaction gains/losses interest income excluded atoi.
 segments totaled $ 1087 2016 $ 986 2015 $ 983 2014.
 shipment sales atoi data realized price data three years december 31  2016.
 consolidated financial statements item 8 form 10-k.
first quarter 2017 arconic metric adjusted ebitda.
 global rolled products.
 2015 2014
 third-party aluminum shipments 1339 1375 1598
 price metric ton aluminum $ 3633 $ 3820 $ 3970
 third-party sales $ 4864 $ 5253 $ 6344
 intersegment sales 118
 total sales $ 4982 $ 5378 $ 6529
 $ 269 $ 225
 excludes warrick operations equity interest rolling mill joint venture saudi arabia global rolled products alcoa corporation november 1 2016.
 price ton aluminum price metal regional premium conversion price aluminum.
.
 global rolled products segment produces aluminum sheet plate markets.
 distributors aerospace automotive commercial transportation packaging building construction industrial.
small produces aseptic foil packaging.
 base flat-rolled large


entergy corporation subsidiaries financial statements rate 2. 04%.
 principal not due entergy louisiana principal payments bonds five years $ 21. 7 million 2017 $ 22. 3 million 2018 $ 22. 7 million 2019 $ 23. 2 million 2020 $ 11 million 2021.
 louisiana purchased property right recover bonds.
 proceeds-incurred costs.
 regulatory asset balance sheet.
 creditors assets revenues.
 no payment obligations charge collections.
 new orleans bonds hurricane isaac city council financing order bonds hurricane isaac storm restoration costs $ 31. 8 million carrying costs storm recovery reserve $ 63. 9 million $ 3 million up-front financing costs.
 entergy new orleans recovery funding. issued $ 98.7 million storm cost recovery bonds.
 coupon 2. 67%.
 principal not due entergy new orleans principal payments five years $ 10. 6 million 2017 11 2018 11. 2 million 2019 11. 6 million 2020 $ 11. 9 million 2021.
 entergy new orleans purchased recovery property right recover.
 regulatory asset entergy new orleans balance sheet.
 creditors recourse assets revenues.
 no payment obligations charge collections.
 securitization bonds hurricane rita 2007 financing order $ 353 million hurricane reconstruction costs $ 6 million transaction costs offset $ 32 million deferred income tax benefits.
 2007 entergy gulf states reconstruction funding-owned issued $ 329. 5 million senior secured transition bonds.
.51%. 51 october 2013 93500
. 79%. 79 %
. 93%. 93 % 2022 114400
 329500


2011 transferred 1. 3 million shares blackrock series c stock blackrock.
 2013 transferred. 2 million shares blackrock.
 december 31 2015 held 1. 3 million shares obligation.
 note 24 february 1 2016 transfer. 5 million shares blackrock ltip obligation.
 pnc fair value offsets marking-to-market obligation.
 fair value included consolidated balance sheet.
 note 7 fair value.
 derivatives manage interest rate market credit risk reduce net income fair value cash flows.
 derivatives risk management.
 derivatives contracts little investment cash asset notional amount underlying.
 amount not exchanged not recorded balance sheet.
 underlying payments.
 interest rate security price credit spread.
 residential commercial real estate loan commitments qualify derivative instruments.
table presents amounts values derivative assets liabilities pnc table 111 total derivatives.
 millions december 31 2015 assetfairvalue liabilityfairvalue
 derivatives hedging instruments $ 52074 $ 1159  $ 174  $ 49061 $ 1261  $ 186
 not 295902  3782  3628  291256  3973  3841
 gross derivatives $ 347976  $ 4941  $ 3802 $ 340317 $ 5234 $ 4027
 included assets.
.
 derivatives fair value.
 balances presented master netting agreements cash collateral.
 offsetting rights.
 nonperformance risk estimated net fair value.
 note 1 accounting policies.
hedging instruments interest rate foreign exchange risk accounting hedges.
 hedging fair value assets hedges future cash flows hedges investment foreign subsidiary hedges.
 allows gains losses recognized income statement hedged items affect earnings.
 pnc financial services group.
 2013 form 10-k


remediated weakness internal control financial reporting may identify weaknesses future.
 november 2017 restated financial statements quarters april july 1 2017 classify cash receipts receivables investing activities.
 identified weakness internal control financial reporting misapplication accounting standards update 2016-15.
 maintain controls over adoption new accounting standards.
 management concluded maintain effective internal control over financial reporting april july 1 2017.
 remediated weakness disclosure controls procedures effective december 30 2017 no assurance controls remain adequate.
 effectiveness subject to limitations decision transactions assumptions cost limitations.
weaknesses deficiencies control discovered financial statements affect business financial condition restrict access capital markets resources subject fines penalties investigations judgments harm reputation investor confidence.
.
 unresolved staff comments.
.
.
 corporate co-headquarters pittsburgh pennsylvania chicago illinois.
 co-headquarters executive offices.
 business units administrative finance legal human resource functions.
 maintain additional owned leased offices regions.
 manufacture products manufacturing facilities.
 2017 operated 83 manufacturing processing facilities.
 own 80 lease three.
 manufacturing facilities.
 maintain manufacturing facilities in good condition.
 enter co-manufacturing arrangements with third parties production.
.
.
 involved in legal proceedings claims governmental inquiries inspections.
predict results legal matters expect ultimate costs financial condition results operations.
 item 4.
 mine safety disclosures.
 not applicable.


tax benefits stock-based compensation 2011 2010 2009 $ 16 million $ 6 million $ 5 million.
 northrop grumman shares before spin-off not reflected financial statements.
 tax benefits 2011 $ 2 million stock options $ 10 million issuance stock.
 $ 1 million unvested stock option awards recognized 1. years.
 $ 19 million 2011 rsrs 2. years $ 10 million one year $ 18 million 2011 rpsrs 2. years.
 compensation expense determined grant.
 no additional options granted 2011.
 fair value stock option awards expensed straight-line vesting period.
 value estimated date grant black-scholes option pricing model dividend yield northrop grumman 2019s dividend yield.
 volatility implied traded options historical.
risk-free interest rate stock option based yield curve zero-coupon.
 treasury bond maturity term.
 historical experience.
 stratification employee populations.
 weighted-average assumptions stock options 31 2010 2009.
 dividend yield 2. 9%. 9 % 3. 6%. 6 %
 volatility rate 25%
 risk-free interest rate 2. 3%. 3 %. 7%. 7 %
 option life
 weighted-average value stock options 2010 2009 $ 11 $ 7  per share.


off-balance-sheet arrangements joint ven tures debt preferred equity investments.
 varying ownership structures.
 accounted under equity control decisions.
 preferred equity investments unconsolidated joint ventures.
 debt obligations.
 capital expenditures 2011 $ 120. 5 million capital expenditures net loan reserves tenant improvements leasing wholly-owned properties capital expenditures joint venture properties $ 23. 4.
 fund capital operating cash flow mortgage financings cash on hand.
 future property acquisitions require capital investments refurbishment leasing costs.
.
 resources capital needs 12-month period.
 cash on hand net cash borrowings asset sales equity debt issuances.
federal income tax four fiscal quarters distributions common stock equity interests 95% funds operations.
 december 2009 compliance covenants.
 exposed interest rates floating rate borrowing arrangements.
 use interest rate derivative instruments.
 hypothetical 100 point increase annual interest cost $ 11. $ 15. 2 joint venture annual interest cost $ 6. 7 $ 6. 4.
 recognize derivatives fair value.
 not hedges adjusted fair value.
 changes fair value offset against recognized income until.
.
 $ 4. 1 long-term debt interest fixed rates fair value affected by changes market interest rates.
 interest rate variable rate debt joint venture debt december 2010 ranged plus 75 to plus 400.
obligations maturities mortgages loans 2007 unsecured revolving credit facility senior unsecured notes trust securities joint venture debt-right extension options estimated interest expense obligations capital ground leases december 2010.
 2012 2013 2014 2015
 property mortgages $ 246615 $ 143646 $ 656863 208025 260433 1884885 3400467
 revolving credit facility 2014 650000
 trust preferred securities
 senior unsecured notes 84823 123171
 capital lease
 ground leases 28929
 estimated interest expense 265242 245545
 joint venture debt 207738
 $ 834902 1253587 949173 872649 565213 4587126 9062650
48 green realty.
 report financial operations


management 2019s discussion analysis jpmorgan chase. 10-k net income yield excluding yield reviews metrics excluding non-gaap financial measures.
 lending investing deposit-raising.
 metrics non-markets-related interest income yield.
 fixed income equity.
 disclosure income yield provides business trends comparable institutions lending investing deposit-raising.
 year ended december 31 millions 2018 2017 2016 net interest income 2013 $ 55687 $ 51410 $ 47292 markets excluding cib markets $ 52600 $ 46780 $ 40958 interest-earning assets $ 2229188 $ 2180592 $ 2101604 assets 609635 $ 1619553 $ 1639757 $ 1581297 net interest yield 2013. yield cib markets assets. excluding cib markets 3. 25%.25 %. 85%. 85 %. 59%. 59 % interest includes hedges.
 taxable-equivalent amounts applicable.
 reconciliation net interest income reconciliation.
 results page 57.
 information page 69.
 calculation.
 non-gaap financial measures.
 book value per share stockholders equity period-end overhead ratio noninterest expense net revenue return assets average assets return equity return equity book value per share income reviews adjusted expense noninterest legal expense non-gaap financial measure.
 credit metrics ratios exclude pci loans non-gaap.
 understand effect results performance.
 information credit metrics ratios loans credit investment risk management pages 102-123.
 year ended december 31 millions 2018 2017 2016
interest income 2013 $ 55687 $ 51410 $ 47292
 cib markets 3087 4630 6334
 excluding cib markets $ 52600 $ 46780 $ 40958
 interest-earning assets $ 2229188 $ 2180592 $ 2101604
 cib markets 540835 520307
 $ 1619553 $ 1639757 $ 1581297
 interest yield assets 2013 2. 50%. 50 %. 36%. %. 25%. %
 markets. 51. 86. 22
 3. 25%. 25 % 2. 85%. 85 %. 59%. 59 %
. interest income yield excluding metrics non financial measures.
 lending investing deposit-raising.
 non-markets-related net income yield.
 fixed income equity markets.
believes disclosure non-related income yield provides investors trends institutions lending investing deposit-raising.
 year december 31 millions 2018 2016 net interest income 2013 $ 55687 $ 51410 $ 47292 less cib markets 6334 excluding markets $ 52600 $ 46780 $ 40958-earning assets $ 2229188 $ 2180592 $ 2101604 less 540835 520307 $ 1619553 $ 1639757 $ 1581297 interest yield 2013. 50%. 36%. 25%. markets. excluding 25%. 85%. % 59%. includes effect hedges.
 taxable-equivalent amounts applicable.
 reconciliation net interest income.
 results page.
 information page 69.
 calculation.
 measures.
non-gaap measures calculated book value per share stockholders 2019 equity-end overhead ratio noninterest expense net revenue return assets average assets return common equity stockholders 2019 equity return common equity book value per share 201d-end net income reviews adjusted expense noninterest legal expense non-gaap.
 credit metrics ratios exclude pci loans non-gaap.
 help effect results performance.
 credit investment risk management pages 102-123.


schlumberger subsidiaries common stock millions treasury.
 balance january 1 2010 -139
 acquisition smith international.
 shares sold optionees exchanged
 employee stock purchase plan
 repurchase program
 conversions debentures
 balance december 31 2010 1434 -73 1361
 shares sold optionees exchanged
 restricted stock
 employee stock purchase plan
 repurchase program -37
 december 31 2011 1434 1334
 shares sold optionees exchanged
 stock purchase plan
 balance december 31 2012 1434 -106 106 1328
 consolidated financial statements


louisiana subsidiaries financial increased demand customers expansion projects chemicals industry.
 louisiana act 55 financing savings regulatory tax savings.
 savings 2010-2011 audit settlement louisiana act 55 storm costs hurricane gustav ike.
 note 3 financial statements.
 provision $ 23 million 2016 waterford 3 replacement steam generator offset $ 32 million 2015 uncertainty.
 note 2 financial statements.
 net revenue fuel expenses gas power expenses regulatory charges.
 change net revenue.
.
 2014 net revenue $ 2246.
 retail electric price.
.
 waterford 3 replacement steam generator provision.
.
.
 2015 net revenue $ 2408.
 price due formula rate plan increases lpsc 2014 january 2015.
 note 2 financial statements.
volume/weather variance due increase 841 gwh 2% electricity usage increased industrial usage demand refinery new expansion projects chemicals industry offset decrease demand seasonal outage.
 waterford 3 replacement steam generator due regulatory charge $ 32 million 2015 uncertainty.
 note 2.
 miso deferral variance due deferral 2014 non-fuel miso-related charges.
 offset operation maintenance expenses.
 note 2.


cash flow operations 2017 $ 2. 7 billion 8 percent increase 2016 earnings capital.
. 23 percent increase. 2015 $ 424 million divestitures.
 capital 6. valves controls.
 expenditures $ million dividends $ 1239 million common stock purchases $ 400 million debt.
 $ 5. 1 billion acquisitions $ 2990 million operations $ 778 million repayments debt $ 1. 3 billion.
 contributions pension plans $ 45 million 66 million 53 million 2015.
 expenditures $ 476 million $ 447 million $ 588 million.
 cash flow $ 2. billion 2017 8 percent.
.
 targeting capital spending $ 550 million 2018.
 acquisitions 2990 million 132 million 324 million.
 proceeds divestitures $ 39 million $ 1812 million 2015.
dividends $ 1239 million. 92 share 2017 1227 million. 90 2016 1269 million. 88 2015.
 quarterly cash dividend 1 percent annualized $ 1. 94 per share.
 purchases emerson common stock $ 400 million 601 million $ 2487 million 2017 2016 2015 average share prices $ 60. 51 48. $ 57.
 authorized purchase 70 million shares 2015. million shares.
 purchased. million shares 2017.
. million shares.
 43. 1 million shares purchased.
.
 assets $ 22088
-term debt $ 4289
 stockholders equity
 debt-to capital ratio 45. 8%. 8 7%.
 debt-to-net capital 31. 3%. 4%.
 cash flow-to-debt 29. 8%. 37 7% 57 8%.
 coverage..
 debt long commercial paper short-term borrowings $ 4. 7 billion $. 6 billion $. 8 billion 2017 2016 2015.
 repaid $ 250 million 5. 125%. % notes 2016.
 issued $ 500 million. 625%. 2021 $ 500 million 3. 150%. 150 % 2025 repaid $ 250 million. 0%. 2014 $ 250 million 4. 125%. april 2015.
 debt-to-capital net-net decreased 2017 debt higher equity.
 increased 2016 equity.
 cash flow-to-debt ratio increased 2017 debt.
 taxes debt.
 coverage ratio earnings.
 increase 2017 lower expense.
 decrease 2016 lower pretax earnings divestiture gains $ 1039 million 2015 higher interest expense.
 2014 $ 3.5 billion five- year credit facility replaced 2010 $ 2. 75 billion.
 corporate purposes commercial paper borrowing.
 incurred borrowings.
 financial covenants termination.
 unsecured accessed interest currency.
 fees immaterial.
 universal shelf registration statement


holdings.
 2013 10-k annual report state income tax returns examination 3 to 5 years after filing.
 impact federal changes one year after notification.
 state income tax returns examination litigation.
 examination foreign jurisdictions.
 statutes limitations 3 to 5 years.
 australia canada france germany ireland italy japan puerto rico switzerland united kingdom.
.
 authorized issue 250 million shares preferred stock none issued outstanding december 31 2013.
 numerator basic diluted earnings net earnings.
 denominator basic earnings weighted average shares.
 diluted shares adjusted dilutive stock options equity awards.
 reconciliation weighted average shares.
 years december 2011
 average shares net earnings per share 169.
 dilutive stock options equity awards..
 shares diluted net earnings 171. 176. 188.
 earnings 169. 6 174. 9 187. dilutive stock options equity awards. earnings 171. 176. 188. 2013 3. million options not included greater market price.
 2012 2011 11. 9 million 13. 2 million options not included.
 2013 repurchased 9. 1 million shares common stock average $ 78. per share total cash outlay $ 719. million.
 january 1 2014 new share repurchase program purchases $ 1. billion no expiration date.
 purchases repurchase.
.
 design develop manufacture market orthopaedic reconstructive implants dental implants spinal implants trauma products surgical.
 healthcare services.
 operations segments americas.
 pacific.
structure reportable segment information.
 management evaluates profit payment inventory step-up charges goodwill items global operations functions.
 research development engineering medical education brand management legal finance human resource. manufacturing intangible asset amortization.
 intercompany transactions eliminated profit.
 reviews accounts receivable inventory property plant equipment goodwill intangible assets. manufacturing.


product offerings include active index strategies.
 returns market benchmark risk profile.
 fundamental research quantitative models.
 index strategies returns index securities.
 strategies include non-etf index products ishares.
.
 market.
 institutional non-etf index assignments large reflect low fee rates.
 net flows index products revenues earnings.
-end 2015 equity aum totaled $ 2. 424 trillion net inflows $ 52. 8 billion.
 $ 78. 4 billion $ 4. 2 billion active products.
 inflows driven by market equity international equities.
 offset by non-etf index net outflows $ 29. 8 billion.
 blackrock 2019s fee rates fluctuate.
 half equity tied to international markets fee rates.
.
.
blackrock 2019s equity fee rates revenues.
 ended 2015 $ 1. 422 trillion increasing $ 28. 7 billion 2% 2014.
 $ 76. 9 billion net inflows offset $ 48. 2 billion market depreciation foreign exchange movements.
 inflows $ 35. 9 billion diversified income high yield strategies.
 7. billion total return. high yield bond 3. billion.
 inflows $ 50. 3 billion core high yield bond funds.
 offset non-etf outflows $ 9. 3 billion.
 balanced funds bespoke mandates equities bonds currencies commodities risk management.
 long-only portfolios alternative investments asset allocation overlays.
 changes-asset class aum.
 inflows change.
millions december 312014 net inflows acquisition market change impact december 312015
 asset allocation 183032 12926 -6731 -3391 185836
 target date 128611 125664
 fiduciary 66194 -6373
 futureadvisor
 multi-asset $ 377837 $ 17167 -7413 -11621 376336
 $ 366 million futureadvisor 2015.
 ishares.
 multi-asset class inflows demand $ 17. 4 billion institutional clients.
 contributed $ 7. 3 billion business 2015 target date risk product offerings.
 retail outflows $ 1. 3 billion-client transition mutual funds ishares.
 multi-asset income fund raised $ 4. 6 billion 2015.
multi-asset strategies 2022 49% aum year-end new business $ 12. 9 billion.
 combine equity fixed income alternative.
 risk diversification derivatives tactical allocation.
 flagship products global allocation-asset income suites.


valuation allowance 30 september 2016 $ 155. 2 tax federal capital loss $ 48. foreign loss $ 37. 7 assets $ 58. energy-waste business 2016.
 reversal valuation tax expense.
 future earnings reversal deferred tax tax assets 2016.
 deferred tax liability unremitted earnings decreased dividend subsidiary south.
 impacted activity dividend tax credit adjustments currency translation undistributed earnings foreign subsidiaries ventures.
.
 income taxes undistributed earnings.
 earnings balance $ 6300. 9 30 september 2016.
 estimated $ 1467. 8.
 income taxes due remitted dividends deferred taxes.
 reconciliation unrecognized tax benefits.
 2015 balance $ 97. 5 $ 108. 7 $ 124. 3
tax positions 15. 6. 8.
 prior 3. 7. 4.
 reductions. 3
. 2014
 statute limitations expiration.
. 5 2014
 balance end $ 106. 9 $ 97. 5 108.
 2016 2015 $ 106. 9 $ 97. 5 unrecognized tax benefits excluding penalties $ 64. 5 $ 62. 5 tax rate.
 income tax $ 2. 3 2016 1. 8 2015 1. 2 2014.
 balance interest penalties $ 9. 8 $ 7. 5 30 2016 2015.


network corporation financial statements ciel ii.
 canadian dbs satellite launched december 2008 commercial operation february 2009.
 capital lease depreciated.
 leased 100% capacity 10 year term.
 31 2011 2010 $ 500 million capitalized satellites acquired capital leases depreciation $ 151 million $ 109 million.
 $ 43 million depreciation expense satellites capital lease 2011 2010 2009.
 future minimum lease payments present net minimum lease payments.
 2012 $ 84715
 2013
 2014
 2015
 2016
 314269
 lease payments 705113
 executory costs insurance -323382
 net 381731
 interest
 lease payments 271908
 long-term capital lease obligations $ 242706
future maturities long-term debt december 31 2011 commitments table note 16.
.
 future tax effects differences tax assets liabilities balance operating loss tax credit.
 tax assets offset valuation allowances.
 valuation.
 financial information taxable income planning opportunities.
 consolidated tax returns.
 taxes subsidiaries.
 statements.
 december 31 2011 no net operating loss carryforwards federal tax $ 13 million benefit state tax.
 expire 2020.
 $ 5 million tax benefits credit carryforwards partially offset valuation allowance $ 14 million capital loss carryforwards offset valuation allowance.
 carryforwards expire 2012.


fuel costs gross-ton miles decreased 9% 9.
 fuel consumption rate increased 1% 1 2014.
 fuel shipments miles increased c-rate.
 volume growth 7% 7 % fuel expense 2014.
 offset lower locomotive diesel fuel prices averaged $ 2. 97 per gallon $ 3. 15 2013 improvement c-rate.
 road property rail ties ballast material.
 higher depreciable asset base increased depreciation expense 2015.
 offset lower rates.
 depreciation up 7% ( 7 % 2014 2013.
.
.
 decreased $ 4 million 2014 decrease intermodal shipments growth finished vehicle shipments.
 higher intermodal volumes longer cycle times increased short-term freight car rental expense.
equipment leases offset higher freight car rental expense purchase options leased equipment.
 expenses include state taxes freight equipment damage utilities insurance personal injury environmental employee travel telephone cellular computer software debt general expenses.
 expenses flat 2015 2014 higher property taxes offset lower costs.
 personal injury utilities environmental expense damaged freight costs.
 non-operating items change.
 income $ 226  $ 151 $ 128 50% 18%
 interest expense -622
 income taxes -2884 19% 19 %
 income increased $ 113 million gain real estate sale offset gain permanent easement.
 increased gains.
 offset higher environmental costs non-operating property lower lease income $ 17 million settlement land lease contract increased 2015 increased weighted average debt level $ 13.2015. 7 billion 2014 offset lower interest rate 4. 8%. 3%. 2014.
 expense increased debt $ 10. 7 billion 9. 6 billion 2013 lower interest rate. 3%. 2014 7%.


12/07 12/08 12/09 12/10 12/11
 fidelity national information services. 100. 70. 101. 120. 117. 157. 38
 100. 63. 79. 91. 93. 108. 59
 data processing 100. 68. 99. 97. 118. 151.
. 99. 97. 118. 151.
 financial.
 historical data 7 financial condition results operations 8 financial statements supplementary data.
 october 1 2009 acquisition metavante technologies.
.
 financial position consolidated financial statements.
 july 2 2008 spin-off lender processing services. former wholly-owned subsidiary.
 results discontinued operations.
 prior periods 2008 discontinued.


valero energy corporation subsidiaries financial statements commodity price risk exposed risks crude oil refined products grain natural gas.
 reduce impact price volatility use commodity derivative instruments futures swaps options.
 futures liquidity flexibility hedging trading.
 swaps manage price exposure.
 positions commodity derivative instruments monitored risk control group risk management policy.
 fair value hedges cash flow hedges economic hedges.
 commodity derivative instruments trading.
.
 fair value hedges hedge price volatility refining inventories commitments purchase inventories.
 activity based operating inventories.
 december 31 2011 outstanding commodity derivative instruments hedge crude oil refined product inventories fixed price.
 volume contracts by type instrument year maturity.
.
contract volumes 2012
 crude oil refined products
 futures 15398
 contracts


income.
 blackrock uses operating margin performance.
 management uses gaap non-gaap financial measures financial performance.
 non-gaap measure include all revenues expenses.
 operating income margin equal to excluding closed-end fund launch costs related commissions.
 exclusion fluctuate impact results future periods.
 revenue margin excludes distribution servicing costs.
 exclusion creates consistency in treatment contracts services investment advisory administration fees securities lending revenue.
 amortization of deferred sales commissions excluded from revenue costs offset distribution fee revenue.
 excludes costs related offsetting revenues.
 nonoperating income expense less net income loss ) noncontrolling interests.
 compensation expense offset recorded in operating income.
 included in nonoperating income returns on investments plans.
believes nonoperating income less net loss nci provides comparability effective measure reviewing blackrock 2019s contribution results.
 compensation expense investments deferred compensation plans included in operating income offsets gain loss loss nci useful measure blackrock 2019s nonoperating results book value.
 2013 noncash pre-tax gain $ 80 million pennymac investment excluded from nonrecurring nature charitable contribution expense $ 124 million reported in operating income.
 2012 2011 income $ 116 less net income loss nci.
 -54 -114
 net income loss ) nci
 -36 -116
 gain related to charitable contribution -80 2014
 compensation expense related to on deferred compensation plans -10 -6 (
nonoperating income loss nci $ 7 -113
 gain charitable contribution 80 2014 compensation expense deferred compensation plans 10 nonoperating income loss nci $ 7 42 113 net income blackrock. diluted earnings share profitability financial performance.
. equals. nonrecurring items book value items.
 operating income margin pnc funding obligation merrill lynch compensation contribution charitable contribution.
 lease exit costs restructuring charges.
 2013 results tax benefit $ 48 million charitable contribution.
 excluded net income blackrock. nonrecurring charitable contribution.
 income tax changes revaluation deferred income tax liabilities legislation united kingdom income tax changes.
2012 income tax changes deferred liabilities legislation united kingdom state local tax company organizational structure.
 2011 tax changes liabilities state tax election.
 state tax legislation.
 decrease income taxes excluded net income blackrock. cash flow comparability.


graph compares yearly stockholder return last five years market price common stock return nasdaq composite index.
 peer group medical equipment 3840-3849 index.
 assumes investment $ 100 march 31 2010 common stock nasdaq composite index.
 peer group reinvestment dividends.
 3/31/2010/31/2015
 abiomed inc 140. 215. 180. 252. 693.
 nasdaq composite index 115. 128. 136. 175. 204.
 medical equipment 3840-3849. 115. 105. 123. 118.
 not material securities exchange act 1934 not filed securities exchange commission not incorporated securities act 1933.
 american stock transfer trust company 59 maiden lane new york.


compensation cost table expense programs 2018 2017 2016 awards retirement-eligible employees $ 669 659 555 deferred cash awards performance units 202 354 336 expense awards 435 474 509.
 millions 2018 2017 2016
 retirement $ 669 659 555
 amortization deferred cash awards 354 336
 deferred stock awards 474 509
 incentive compensation 640  694 710
 $ 2021 $ 2251 $ 2183
 stock awards.
 accrued compensation.
 amortization unvested awards non-retirement-eligible employees.


consume energy may incur capital operating expenditures climate environmental regulations.
 incur liabilities fines enforcement actions resource damages cleanup closure costs third-party claims property damage personal injury environmental laws.
 foreign corrupt practices act 1977 anti-bribery laws prohibit improper payments decisions.
 internal control policies may protect from criminal acts employees.
 violations lead penalties damage reputation.
 subject labor employment laws regulations increase operating costs reduce operational flexibility.
 changing privacy laws united states privacy rights obligations exposure fines penalties.
.
 no.
.
 north.
 south america europe asia australia.
 lease offices atlanta ga.
 existing production capacity adequate demand plants equipment good condition.
 corporate operating facilities as of september 30 2019.
facilities owned leased
 corrugated packaging 112 61 173
 consumer packaging 84 55 139
 corporate regional offices 2014
 196 126 322
 tables annual production capacity mill 30 2019 tons north charleston machine closure 2020.
 production rates vary hurricanes.
 mill system operating rates three years 94%.
 own mills.


.
 deferred financing costs $ 51 million $ 60 million amortization 2007 2006.
 amortization $ 13 million $ 15 million $ 14 million included interest expense statements operations.
 amortization property equipment capital leases $ 2 million $ 3 million 2007 depreciation amortization state.
 stockholders fifty million shares common stock par value $ 0. 01 per share authorized 522. 6 million 521. 1 million outstanding december 31 2007 2006.
 fifty million no par value preferred stock authorized 4. million.
 90% taxable income capital gain.
 100% income.
 preferred dividends quarterly dividend.
 determined board directors.
 dividends 2007 2006 2005 ordinary income.
 common preferred dividends per share.
.
b stock 10% 10 % 2014.
 c 10% 10 %.
 87/8%.
 7/8% %. 2006 issued 133. million shares starwood.
.
 converted convertible debentures 24 million shares common stock.
 remainder redeemed $ 2 million 2006.
.
 publicly-traded 4034400 shares 7/8% 7/8 % stock.
 cash dividends 7/8% 7/8 % per annum $ 25. per share payable quarterly.
 2 2009 option redeem stock $ 25. per share dividends.
 senior common.
 no voting rights.
 accrued dividends december 31 2007 2006 $ 2 million.
 2005 redeemed shares c b stock.
 fair value exceeded carrying value $ 6 million $ 4 million.
amounts represent issuance costs.
 class c b preferred stock reflected in net income calculating diluted earnings per share.
 1998 board adopted dividend one preferred stock purchase right distributed each share.
 entitles buy 1/1000th stock exercise price $ 55 per share subject adjustment.
 rights exercisable 10 days after ownership 20%.
 shares owned november 3 1998 exempt ownership.
 rights non-voting expire november 22 2008 unless exercised for $. 005 each.
 right entitles holder purchase common stock twice exercise price.
 repurchase plan authorized repur chase $ 500 million common stock.
 purchased open market or private market conditions.
 plan obligate repurchase suspended management.
 income taxes reit effective january 1 1999.
 revenue code 1986.
corporation elects reit status meets tax law requirements distribution taxable income stockholders revenues not subject federal state taxation operating income stockholders.
 taxes retained income subject taxes 201cbuilt-in-gains sales assets.
 taxable reit subsidiaries subject federal state foreign 4/8/08 4:02 pm


corporation subsidiaries regulatory zero net balance end lease term.
 liability $ 61. 6 million $ 27. 8 million december 31 2013 2012.
 future minimum lease payments. 13%. long-term debt.
 51637
 2015 52253
 2016 13750
 2017
 2018
 247500
 392640
 295226
 minimum lease payments $ 97414


expiration statutes estimates unrecognized tax benefits $ 365 million twelve months no impact earnings tax.
 audit adjust final.
 income tax provision 2007 $ 415 million $ 41 million tax $ 8 million other benefits.
 $ 423 million 30% pre-tax earnings minority.
 tax 2006 $ 1. 9 billion $ 1. 6 billion deferred tax $ 300 million current tax provision.
 $ 11 million special tax adjustment.
 $ 272 million 29% pre-tax earnings minority.
 2005 $ 407 million $ 454 million special tax adjustment $ 627 million agreement.
.
 $ 142 million deferred taxes earnings repatriations act $ 31 million other tax charges.
 $ 83 million 20% pre-tax earnings minority.
.
operating loss carryforwards $ 352 million 2008 2017 $ 14 million indefinite 338 million.
 $ 258 million 2008 2017 83 million 2018 2027 175 million.
 federal.
 state tax credit carryforwards 2008 2017 $ 67 million 2018 2027 $ 92 million $ 316 million.
 state capital loss 2008 2017 $ 9 million.
 deferred income taxes differences $ 3. 7 billion $ 2. 7 billion $ 2. 4 billion december 2007 2006 2005.
.
 deferred tax liability.
 property machinery equipment leased.
 unconditional purchase obligations capital projects purchase pulpwood wood chips raw materials energy services.
 december 31 2007 future commitments-cancelable leases obligations.

 lease obligations $ 136 116 101 92
 purchase obligations 1953 294 261 1480
 $ 2089 410 362 319 279 1572
 $ 2. 1 billion fiber supply agreements transformation plan.
 rent expense $ 168 million 217 million $ 216 million 2007 2006 2005.
 2000 unsecured credit agreement financial institution.
 cancelled paid fee $ 11 million.
 no future obligations.


discloses purchases common stock fourth quarter 2015.
 shares purchased average price paid share not purchased plans dollar value.
 october 2015 1658771  $ 62. 12 842059 816712 $ 2. 0 billion
 november 2015 2412467  $ 71. 08 212878 2199589 $ 1. 8 billion
 december 2015 7008414 $ 70. 31 7007434 $ 1. 3 billion
 11079652  $ 69. 25 1055917 10023735 $ 1. 3 billion
 shares represent purchases fourth quarter 2015 open-market transactions stock-based compensation plans employees stock options vesting restricted stock compensation transactions.
 july 13 2015 board approved purchase $ 2.billion common stock no expiration $ 3 billion.
 completed purchases.
 december 31 $ 1. 3 billion 2. 5 billion program.


item 5.
 registrant's common equity issuer purchases common stock traded nasdaq market. table high low sale prices share march 14 2006 1312 holders 20200 holders.
 never declared cash dividends expect future earnings retained business.
 repurchase securities quarter december 31 2005.
 issued additional 781000 shares stock exchanges holders.
 exempt registration securities act 1933 no commission remuneration paid.
 year ended december 31 2004
 first quarter 12. 20 8. 82
 second quarter.
 third quarter.
 fourth quarter.
 ended december 31 2005
 first quarter 11. 99 9.
 second quarter.
 third quarter 22.
 fourth quarter.


excludes discontinued operations.
 earnings before interest taxes assets.
 debt percent equity non-current deferred income tax liabilities.
 results include impact specified items.
 discussion 2017 2016 2015 item 7.
 financial condition.
 millions share amounts years 2016 2015 2014 2013
 specified items $ 1466 $ 1261 $ 1186 $ 153 442
 after-tax impact $ 971 $ 892 $ 786 279
 impact diluted earnings per share -4. 34. -4 -3 79. 51
 impact dilution from share issuances. 54.
 7.
 commentary consolidated financial statements notes.
 columns not add rounded numbers.
 percentages earnings per share calculated from underlying amounts.
 fiscal years september 30.
overview business segments becton dickinson company global medical technology company development manufacture sale medical supplies devices laboratory equipment diagnostic products healthcare institutions life science researchers clinical laboratories pharmaceutical industry public.
 structure segments medical life sciences.
 products manufactured sold worldwide.
 marketed united states internationally distribution channels end-users.
 operations asia latin america canada.
 pursue growth emerging markets eastern europe middle east africa latin america asia pacific.
 focused countries china india.
 sustainable growth shareholder value investments future.
 strategies increase revenue growth core products services solutions benefits patients healthcare workers researchers


consolidated financial statements 2014 merchant acquiring business united kingdom.
 hsbc uk ten-year marketing alliance customers payment processing services.
 june 23 2008 five year $ 200 million term loan acquisition.
 purchase price excess cash credit facilities.
 loan interest prime london interbank margin leverage.
 july 1 2008 interest rate 3. 605%.
 quarterly principal payments $ 5 million august 31 2008 $ 10 million 2010 $ 15 million 2011.
 partnership agreement provisions hsbc purchase additional membership units option.
 fifth anniversary.
 purchase 15% membership units.
 tenth anniversary purchase units.
 june 2013 maximum redemption $ 421. 4 million may 31  2008.
 acquisition establish presence united.
factors analysis market share retail presence united kingdom.
 purchase price determined multiples.
 $ 441. million $. million cash $ 2. 5 million pocket costs.
 recorded allocated assets liabilities estimated values.
 preliminary purchase price allocation.
 294741
 customer intangible assets 116920
 contract-based intangible assets 13437
 trademark 2204
 property equipment 26955
 current assets
 acquired
 minority interest equity subsidiary -13257
 assets acquired 441100
 preliminary.
 goodwill deductible tax.
 assets 13 years.
 contract-based 7.
 trademark 5.


part ii item 5 market 2019s equity stockholder matters issuer purchases securities motorola 2019s common stock listed new york chicago stock exchanges.
 stockholders january 31 2008 79907.
 securities equity compensation plans compensation plan motorola 2019s proxy statement 2008 annual meeting.
 note 16 201cquarterly financial data consolidated financial statements 8 financial statements data.
 table acquisitions common stock quarter december 31 2007.
 issuer purchases equity securities number shares purchased average price paid per share plans maximum value.
 average price paid share maximum value
 9/30/07 to 10/26/07 2972951 $ 18. 84 2964225 $ 4267375081
 10/27/07 to 11/23/07 5709917 $ 17.5706600 $ 4169061854
 11/24/07 12/31/07 25064045. 3767061887
 33746913 $. 33734870
 2006 stock repurchase program equity compensation plans 12043 shares motorola common stock tax vesting restricted stock.
 july 24 2006 march 21 2007 authorized repurchase $ 7. 5 billion common stock june 2009 market conditions.
 average price execution price excluding commissions.


recognized $ 16. 9 million $ 14. 9 million 2012 2011 securities portfolio deterioration credit performance.
 other-than-temporary impairment ) noncredit portion 2012 2011.
-temporary impairment $ -19. 8 ( 19. $ -9. 2 (.
 noncredit portion recognized comprehensive income. -5. 7 ( 5.
 net impairment $ -16. 9. $ -14. 9.
 provision loan losses decreased 20% to $ 354. 6 million 2012 2011.
 improving credit trends lower levels delinquent loans one- four-family home equity.
 offset by $ 50 million charge-offs bankruptcy filings third quarter 2012 80% related prior years.
 third party loan servicers bankruptcy data increase bankruptcies servicer.
 data.
implemented enhanced procedure bankruptcy party data.
 $ 90 million loans identified failed report bankruptcy 90% current third quarter 2012.
 loans written down current value property less selling costs $ 40 million 2012.
 loan losses $ 50 million december 31 2012.
 declined four consecutive years down 78% from peak $ 1. 6 billion 2008.
 expect.


refining wholesale marketing gross margin difference prices refined products costs crude oil purchased products manufacturing expenses depreciation.
 crack spread market prices refined products crude oil refining margin.
 fluctuate.
 calculate midwest chicago.
 gulf coast crack spreads.
 light louisiana sweet prices 6-3-2-1 ratio 3 2 distillate.
 refineries process sour crude oil discount sweet crude oil.
/sour differential refining wholesale marketing margin.
 larger sweet/sour differential refining wholesale marketing gross margin.
 2009 sweet/sour differential narrowed lower hydrocarbon demand.
 sour crude 50 percent 52 percent 54 percent crude oil processed 2009 2008 2007.
 table crack spreads midwest chicago gulf coast markets sweet/sour differential three years.
.

 chicago 6-3-2-1 $ 3. 52 $ 3. 27 $ 8. 87
. gulf coast 6-3-2-1 $ 2. 54 $ 2. 45 $ 6. 42
 sweet/sour differential $ 5. 82 $ 11. 99 11.
. crude types. 15% arab light 20% kuwait 10% maya 15% western canadian 40% 40 % mars.
 changes refining wholesale marketing gross margin impacted crude oil selling prices refined products commodity derivative instruments cost products manufacturing costs.
 driven energy maintenance costs.
 catlettsburg garyville refineries.
.
.
 retail marketing gross margin gasoline distillates difference price cost refined products impacts rm&t profitability.
factors competition seasonal demand wholesale supply economic activity weather impact gasoline distillate demand.
 refined demand increased until 2008 decreased petroleum prices economic ethanol.
.
 gasoline one percent distillate decline 12 percent from 2008.
 reduce product margin.
 gasoline distillate demand decreased three percent 2008 2007.
 gross margin less volatile.


default under debt instruments including senior notes subject to acceleration maturity.
 liquidity repay indebtedness.
 seek amendment or repay debt with new debt equity asset sales.
 amend credit facilities raise capital repay obligations maturities accelerated.
 to governmental agencies entities under environmental regulations landfill operations closure costs performance collection landfill transfer station contracts.
 surety bonds letters of credit insurance policies trust deposits in restricted cash marketable securities consolidated balance sheets.
 determined by state environmental regulations.
.
 require third-party engineering specialist determine costs.
 from obligation.
.
 contract performance varies by.
 provide assurance for insurance program collateral for performance obligations.
 increase in financial assurance requirements during 2014 may.
financial instruments issued not indebtedness.
 no liability not reflected consolidated balance sheets record capping closure post-closure self-insurance liabilities.
 underlying obligations recorded fulfill.
.
 no debt obligations leases not debt.
 guarantee third-party debt.
 free cash flow.
 operating activities purchases property equipment proceeds sales.
 free cash flow years 31 2013 2012 2011 calculated millions.
 operating activities $ 1548. 2 $ 1513. $ 1766. 7
 purchases property equipment -880. 880. 903.
 proceeds sales property 23. 28. 34. 6
 free cash flow $ 691. 3 $ 639. $ 864.


financial statements 31 2007 future rental payments leases sublease rental income real estate leases millions.
 2008 317
 275
 2010 236
 2011 214
 2012 191
 $ 1830


freesheet paper higher russia lower economic demand.
 sales price pulp decreased.
 wood fiber offset energy chemicals packaging.
 freight costs.
 maintenance downtime costs outage outage saillat mill russia poland lower.
 costs 2013 sales volumes weaker russia flat.
 sales price uncoated freesheet paper decrease russia.
 input costs higher wood energy lower.
 no maintenance outages first quarter.
 paper mills 75% interest.
 sales $ 185 million 35 million.
 loss 16 million.
 papers sales $ 85 80.
 profits improved $ 1 million.
.
 pulp sales 725 million.
 profits $ 59 million.
 sales volumes increased start-up pulp production franklin mill.
 sales price lower fluff market pulp.
 input costs wood energy.
 freight costs.
operating costs unfavorable start-up franklin mill.
 maintenance lower.
 sales volumes flat fourth quarter 2012.
 sales price realizations improve increases paper tissue pulp.
 input costs flat.
 maintenance $ 9 million higher 2012.
 manufacturing costs franklin mill lower.
 demand pricing correlate spending economic activity.
 raw material energy freight costs manufacturing efficiency product mix.
 net sales 2012 decreased 15% 2011 7% 2010.
 operating profits increased 64% 2011 29% 2010.
.
 profits 27% lower 2011 23% higher 2010.
 lower raw material costs maintenance lower sales price realizations unfavorable product mix lower sales volumes increased downtime higher operating costs 40.
 profits gain $ 3 million sale $ 129 million asset impairment charge $ 72 million charges.
.
2010
 sales $ 3170 3710
 profit
 north american packaging sales $. billion 2012. billion 2011. billion 2010.
 profits $ 165 million 35 236 million 2011 $ 97 million 105 million 2010.
 coated paperboard sales lower weaker market demand.
 folding carton board.
 costs wood offset chemicals energy.
 maintenance costs.
 market down time 113000 tons 2012 38000 2011.


energy resources.
 cash flow increased $ 232. 1 million 2004 due income tax refunds $ 70. 6 million $ 230. 9 million 2003.
 offset money pool activity.
 domestic utility companies energy filed tax accounting method.
 simplified allocation overhead electricity.
 $ 430 million deduction 2003 tax.
 no cash benefit.
 2004 $ 144 million cash tax benefit.
.
 cash flow decreased $ 124. 8 million 2003 due increase federal income taxes $ 74. 0 million 2003 cessation entergy mississippi ggart.
 collected $ 21. 7 million 2003 $ 40. 8 million 2002 power.
 cessation ggart july 1 2003.
 money pool.
 receivables december 31.
 2004 2003

 $ 61592 $ 19064 7046 13853
 money pool used $ 42. 5 million energy cash 2004 $ 12. million 2003 $ 6. 8 million 2002.
 note 4 utility companies statements.
 cash unchanged 2004 construction expenditures offset maturity $ 6. 5 million investments 2003.
 increase $ 16. 2 million net cash maturity $ 22. 4 million investments decommissioning trust contributions $ 8. 2 million investments $ 6. 5 million 2003.
 decrease construction expenditures $ 22. 1 million power uprate project.


7.
 management 2019s financial condition results operations segments organized managed geographic location products services 2022 north america e&p 2013 explores produces markets liquid hydrocarbons natural gas north america 2022 international e&p 2013 produces markets outside north gas. 2022 oil sands mining 2013 mines extracts transports bitumen alberta canada upgrades synthetic crude oil vacuum gas oil.
 forward- looking statements trends business.
 future outcomes.
 cautionary language factors outcomes.
 additional risk factors item 1a.
 annual report form 10-k.
 item 1.
.
 risk 8.
 financial statements data.
 spin-off downstream business june 30  2011 marathon completed two independent energy companies marathon oil mpc.
marathon stockholders june 27 2011 received one mpc common stock two shares marathon stock.
 tax ruling june 2011 tax-free spin-off.
 downstream business discontinued spin-off.
 financial statements 2013 note 3.
 2013 market conditions prices crude oil natural gas impact revenues cash flows.
 table lists crude oil natural gas price averages north america international segments past three years.
 2013 2012
 crude oil bbl $ 98. $ 94. $ 95.
 crude oil bbl $ 108. $ 111.
 hub natural gas mmbtu $ 3. 65
.
&p liquid hydrocarbons 2013 quality production price differ.
 light sweet crude less sulfur lighter less costly higher value products sold.
north america e&p crude oil condensate light sweet onshore eagle ford bakken gulf mexico.
 2013.
 sweet averaged 76 percent 63 42 percent 2012 2011.
 crude oil.
 gulf coast priced louisiana light sweet benchmark wti brent inland areas priced lower.


part ii item 7 2006 cash financing $ 291 million due employee stock plans $ 442 million debt $ 1. 5 billion offset repurchase 17. million shares schlumberger stock $ 1. billion dividends $ 568 million.
 schlumberger december 31 2006 cash investments $ 3. billion credit facilities $ 2. billion business twelve months.
 contractual commitments.
 2007 2008 2009 2010 2011 2011
 $ 5986 $ 1322
 operating leases $ 691
 purchase $ 1526 1490
.
 future payments interest.
 $ 1425 million convertible debentures note 11 financial statements.
.
 contractual obligations.
 reschedule adjust.
 note 4 acquisitions.
 note 20 pension postretirement benefit obligations.
schlumberger has outstanding letters credit/guarantees business performance bonds custom tax commitments facility lease/rental obligations.
 customary practices countries.
 accounting policies estimates financial statements disclosures principles assets liabilities contingent assets revenue expenses.
 accounting policies involve estimates dependent.
 summary policies in note 2 consolidated financial statements.
 bases estimates on historical experience assumptions judgments values assets liabilities.
 results may differ.
 westerngeco segment capitalizes costs.
 carrying value at december 31 2006 2005 2004 $ 227 million $ 222 million $ million.
 costs charged to goods services based revenue.
 carry net book value greater than 4-year straight-lined amortized value.


31 2004 historical results operations pca 2004 2003.
 sales $ 1890. $ 1735. 5 $ 154.
 before interest taxes $ 140. $ 96. $ 43.
 -29. 6 29. -121. 8 121. 92.
 before taxes 110. 9 135.
 taxes -42. 2 42. 10. 5 7 52.
 income loss $ 68. 7 4. $ 83.
 sales increased $ 154. 6 million 8. 9%. 31 2004 2003.
 increased improved volumes prices corrugated products 2003.
 corrugated products volume increased 6. 6%. 29. 9 billion square feet 2004. 1 2003.
 sales volume increased 7. 0%. % 2004.
. 3%. higher 2004 5. 8%.
shipments-per-workday calculated dividing corrugated products volume by workdays.
 increase due 2004 less workday 251 days 2003 252.
 containerboard sales volume increased 6. 8%. to 475000 tons 2004 from 445000 tons 2003.
 income before increased $ 43. 6 million. 1%. 2003.
 $ 27. 8 million net expenses dividend paid pca timberlands venture.
 $ 3. million charge fees expenses debt refinancing fourth quarter charge $ 16. million settle pactiv.
 hourly pension benefits workers compensation liabilities.
 settlement $ 16. million negotiated 2003.
 full accrued fourth quarter 2003.
 operating income decreased $ 3. 4 million 2004 2003.
. decrease attributable increased energy transportation costs. higher recycled wood fiber costs.increased salary expenses hires. million labor costs. million offset sales volume prices $ 44. million.


december 31 2012 liabilities unrecognized tax benefits material.
 subsidiaries file tax returns.
 federal foreign jurisdictions.
 statute limitations open.
.
 income tax examinations 2010.
.
 foreign earnings $ 222 million $ 211 million $ 193 million distributed.
.
 reinvest earnings remittance.
 additional income taxes $ 50 million 2013 $ 45 million 2012 $ 41 million 2011.
 federal foreign income tax payments $ 787 million 2013 $ 890 million 2012 $ 722 million 2011.
 2013 $ 550 million refund pension contributions $ 153 million refund 2011 capital loss $ 250 million refund.
 federal foreign taxes receivable $ 313 million $ 662 million assets tax-deductible pension contributions debt exchange transaction.
 long-term debt.

 rates 2. 13%. to 6. 15%. due 2016 to 2042 5642
 rates 7.%. to. 75%. 2016 to 2036
 rate 7. 38%. % due 2013
 long-term debt
 unamortized discounts
 current maturities
 issued notes $ 1. 3 billion fixed interest rate 4. 07%. % 2042 $ 1. 2 billion interest rates 5. 50%. to 8. 50%. 2023 to 2040 old.
 paid premium $ 393 million $ 225 million cash $ 168 million new notes.
 $ 194 million unamortized discounts amortized additional interest new.
 redeem new notes principal make-whole premium accrued unpaid interest.
 notes payable june 15 december 15 2013.
new notes unsecured senior obligations indebtedness.
 2011 issued $ 2. billion long-term notes october proceeds $ 500 million notes 2013.
 repurchased $ 84 million.
 paid premiums $ 48 million early extinguishments debt non-operating income.
 december 31 2013 $ 1. 5 billion credit facility expires august 2016.
 increase facility $ 500 million.
 no borrowings december 31 2013.
 borrowings unsecured interest eurodollar base.
 obligation loans


company recognizes accrued interest penalties tax income tax expense sales tax.
 funds construction non-cash credit income utility plant cost borrowed funds return equity funds.
 regulated utility subsidiaries record afudc.
 borrowed funds reduction interest statements.
 equity funds included other income expenses.
 afudc summarized years december 31.
 allowance funds construction
 borrowed funds
 environmental costs water wastewater operations subject.
 federal environmental protection environmental claims.
 environmental expenditures current operations future benefit expensed capitalized.
 remediation costs past operations accrued undiscounted.
 costs $ 1 $ 2 as december 31 2015 2014.
accrual relates to conservation agreement subsidiary national oceanic atmospheric administration protect steelhead trout habitat carmel river watershed california.
 company agreed to pay $ 1 annually 2010 to 2016.
 costs recorded in regulatory assets balance sheets december 31 2015 2014 expected recovered future rates.
 uses hedging interest rates.
 independent.
 speculative leveraged instruments.
 derivatives recognized balance at fair value.
 hedge of value asset forecasted transaction cash flows.
 changes in fair value gain recorded in current-period earnings.
 effective gains losses hedges recorded in income.
 ineffective recognized in earnings.
 cash flows from derivative contracts included in net cash operating statements.


2019s jpmorgan chase. annual report wholesale credit portfolio businesses exposed credit risk underwriting lending market-making hedging cash management clearing.
 loans originated acquired retained balance sheet.
 distributes loans market syndicated loan business portfolio credit risk.
 wholesale credit portfolio excluding stable 2015 low criticized exposure nonaccrual loans charge-offs.
 growth loans retained driven increased client activity commercial real estate.
 underwriting.
 portfolio managed reviews client credit quality transaction structure collateral industry product client concentrations.
 credit portfolio 31 exposure nonperforming.
 loans retained $ 357050 324502
 loans held-for-sale 1104
 fair value 2861
 361015
 derivative receivables 59677
wholesale credit assets 434064 438861 1220 899
 commitments 366399 366881
 $ 800463 805742 1413 1002
 derivatives -20681 -26703 26703
 securities collateral derivatives -16580 -19604
 receivables 434064 438861 1220 899 commitments 366399 366881 $ 800463 805742 1413 1002 derivatives 20681 26703 securities collateral derivatives receivables $ 13. 3 billion $ 28. 8 billion margin loans december 31 2015 2014 retail brokerage customers accrued interest receivable balance sheets.
 protection purchased derivatives qualify hedge accounting.
.
 derivatives page 129.
 excludes assets loan.


table refined products sales average price three years.
 2009 2008 2007.
 gasoline 830 756 791
 distillates 357 377
 propane 23
 feedstocks special products 75 100
 heavy fuel oil
 asphalt 69 76
 1378 1352 1410
 average sales price per barrel $ 70. $ 109.
 gasoline blendstocks.
.
 fuel oils midwest upper plains gulf coast southeastern.
 sold 51 percent gasoline 87 percent distillates 2009.
 demand gasoline seasonal summer.
 blended ethanol gasoline 20 years 2007 regulations.
 60 2009 54 2008 40 2007.
 future expansion driven economics supply government regulations.
sell reformulated gasoline blended ethanol chicago louisville milwaukee wisconsin hartford.
 biodiesel diesel minnesota illinois kentucky.
 produce propane seven refineries.
 home heating cooking petrochemical grain drying.
 sales split home heating industrial consumers.
 producer marketer petrochemicals specialty products.
 benzene cumene naphthalene maleic anhydride sulfur toluene xylene.
 market propylene cumene sulfur.
 maleic anhydride canada.
 1400 tons anode coke robinson 5500 tons.
 discontinued production petroleum aliphatic solvents catlettsburg refinery.
 heavy residual fuel oil seven refineries.
 utility bunkering.
 refinery asphalt production 108 mbpd.
market asphalt 33 terminals midwest southeast.
 base 675 asphalt contractors government entities manufacturers.
 sell asphalt wholesale cargo barge.
 produce cements emulsified industrial asphalts.
 acquired 35 percent interest 110-million-gallon clymers indiana.
 50 percent interest greenville ohio.
.
 co-owner.