management financial condition results operations deferrable interest debentures 2005 issued $ 100. trust securities debentures.
 proceeds revolving credit facility.
. 30-year term 2035.
 fixed rate 5. 61%. first 10 years 2015.
 rate three month libor plus 1. 25%.
 securities redeemable.
 covenants 2011 revolving credit facility senior unsecured notes restrictions limit pay dividends investments indebtedness liens negative pledge agreements disposition assets financial ratios minimum net worth indebtedness asset value ebitda charges unsecured indebtedness.
 dividend restriction distributions common stock equity interests federal income tax.
 covenants.
 exposed interest rates floating rate borrowing arrangements.
 interest rate instruments.
100 point increase 2011 annual interest cost $ 12. 3 $ 11. joint venture annual interest cost $ 4. 8 $ 6. 7.
 recognize derivatives fair value.
 adjusted fair value.
 changes fair value offset against recognized income until.
 ineffective change value recognized earnings.
 $ 4. 8 long- term debt interest fixed rates fair value affected changes market interest rates.
 interest rate variable rate debt joint venture debt december 2011 plus 150 to plus 350 points.
 contractual obligations principal maturities mortgages loans 2011 revolving credit facility senior unsecured notes trust preferred securities joint venture debt-right extension options estimated interest expense obligations under capital lease ground leases.
mortgages 52443 568649 647776 270382 556400 2278190 4373840
 revolving credit facility 350000
 securities 100000
 unsecured notes 274804 777194 1270656
 capital lease
 ground leases 615450 782699
 interest expense 312672 309280 244709 212328 470359
 joint venture debt 176457 93683 123983
 695979 1006596 1174607 653245 1956586 5083646


$ 16 million fossil operating costs attala plant 2006 perryville plant 2005 increase $ 12 million storm reserves.
 hurricanes katrina rita $ 12 million return normal expense patterns 2006 2005.
 operation maintenance expenses increased non- utility nuclear $ 588 million 2005 $ million 2006 refueling outages benefit insurance costs nrc fees.
 increased $ 322 million 2005 $ 361 million 2006 city franchise taxes.
 income.
 higher franchise tax expense entergy gulf states.
 higher gross revenues 2006 customer refund 2005.
 increased $ 111 million 2005 $ 156 million 2006 storm restoration costs.
 non-utility nuclear miscellaneous income $ 27 million $. reduction decommissioning liability revised cost study.
 increased entergy-koch investment $ 55 million fourth quarter 2006.
2004 entergy-koch sold energy trading pipeline businesses.
 received $ 862 million sales proceeds cash distribution.
 due november 2006 expiration contingencies sale received cash distributions $ 163 million fourth quarter 2006 gain $ 55 million-tax.
 future cash distributions less than $ 35 million.
 increased due borrowing storm restoration costs hurricanes katrina rita.
 2006 sold retail electric business discontinued operation.
 earnings 2005 affected $ 44. 8 million net discontinued operations sale.
 net charge $ 25. 8 million impairment reserve.
 results 2006 $ 11. 1 million gain sale.
 rates 2006 2005 27. 6%. 36. 6%.
 lower rate due tax benefits loss liquidation entergy power international holdings.
lower rate 2006 audit settlement entergy tax settled issues 1996-1998 audit cycle.
 note 3 financial statements reconciliation federal 35. income tax rates.
 entergy capital structure spending cash flow activity.
 balanced equity debt.
 increase debt to capital percentage 2006 to 2007 borrowings revolving credit facility decrease shareholders equity repurchases common stock.
 financial risk management aspirations.
 decrease debt capital 2005 to 2006 increase shareholders equity retained earnings offset repurchases common stock.
 debt capital 54. 6%. 6 % 49. 4%. 5%.
 debt 3. 2 9%. 6%.
 57. 6%. 6 %. 3%. 1%.
 debt cash equivalents.
 notes payable capital lease obligations preferred stock long-term debt maturing portion.
capital debt shareholders equity preferred stock without sinking fund.
 net capital less cash equivalents.
 entergy uses net debt capital ratio financial information investors creditors condition.


stock performance graph shows stockholder returns common stock nasdaq stock market index pharmaceutical index public offering july 27 2000 through december 26  2003.
 assumes $ 100 invested july 27  2000 common stock index dividends reinvested.
 no cash dividends declared common stock.
 returns indicative future returns.
 comparison return illumina. nasdaq composite index pharmaceutical index december 26.
.
 27 29
. 100. 71. 19. 43.
 nasdaq composite index. 63. 51.
 pharmaceutical index. 93. 82. 74.


institution rated credit agencies.
 illiquid investments determine fair values.
 note 7 fair value financial statements 8.
 business units manage equity investment activities.
 decisions policy limits guidelines.
 summary equity investments millions.
 blackrock $ 6626 $ 6265
 tax credit investments 2254
 private equity 1441
 $ 10587 10728
 35 million shares equity december 31 2015.
 risk economic capital.
 business segments review.
 investments consolidated partnerships $ 2. 3 billion 2015 $ 2. 6 billion 2014.
 unfunded commitments $ million $ 717 million 2015 2014.
 commitments liabilities consolidated balance sheet.
 note 2 loan sale servicing activities variable interest entities.
 illiquid investments industry.
 estimated fair value $ 1.4 billion 2015 $ 1. 6 billion 2014.
 $ 1. 1 billion invested directly companies $. 3 billion indirectly funds.
 direct investments two funds.
 noncontrolling interests $ 170 million 2015.
 indirect funds not redeemable pnc distributions liquidation.
 volcker rule.
 2015 pnc invested banks warning services fraud prevention risk management.
 acquired clearxchange.
 integrating secure real-time payments network.
 unfunded commitments private equity $ 126 million 2015 $ 140 million 2014.
 7 fair value legal proceedings commitments guarantees october 2007 visa restructuring loss sharing agreements visa interchange litigation sales visa class b common shares swap agreements.
 sold 2. million visa class b common shares.
 swap agreements.
note 7 financial statements 8.
 2015 investment visa b shares 4. 9 million carrying value $ 31 million.
 closing price $ 77. 55 $ million conversion rate.
 visa shares transferable publicly traded stock litigation.
 pnc financial services group.
 2013 form 10-k


cash equivalents approximate fair value short-term maturity 90 days or less.
 concentration risk assets exposed credit risk cash equivalents.
 places with reputable financial institutions limits credit exposure.
 evaluates creditworthiness minimizes credit risk high- quality counterparties exposure financial condition.
.
 raw materials components parts from approved.
.
 one supplier.
 accounts receivable include amounts billed due unbilled estimated contract change amounts equitable adjustment retained pending contract completion.
 inventoried costs production costs raw materials stated lower cost value average cost method.
.
 customer asserts title inventories performance-based progress payments.
 current asset include contracts production cycles longer than one year.
 work process contracts labor dollars percentage-of-completion.
costs contract costs less sales percentage-of-completion method not recoverable value.
 advance payments billings revenues recorded payment liabilities.
 depreciable recorded depreciated lives.
 improvements capitalized maintenance repairs minor improvements expensed.
 computer software capitalized amortized over life not nine years.
 leasehold improvements amortized lives.
 remaining assets depreciated straight-line method.
 land improvements
 buildings improvements
 capitalized software costs
 machinery equipment
 evaluates recoverability property equipment economic objectives.
 evaluations include future cash flows profitability factors fair value.
 impairment charges.
 incremental borrowing rate lease classification initial lease term renewal options.
 operating leases.


edwards lifesciences financial statements 2014 december 31 2004 $ 64. 6 million non losses $ 1. 0 million non-expiring tax credits.
 2004 tax benefit carryforward loss $ 35. $ 9. 2005 20132014 29. 13. $ 64. 23. valuation allowance $ 6. 8 million carryforwards.
 reduces deferred tax asset $ 23. 1 million.
 2019s income tax returns examined local taxation authorities.
 tax adjustments.
.
 2000 edwards lifesciences lawsuit.
 medical.
 infringement patents.
 damages injunctive relief.
 paid $ 5. million.
 granted.
 paid license heart valve therapy products lawsuit dismissed.
 settlement financial impact.
august 18 2003 edwards lifesciences filed lawsuit against medtronic.
.
 alleging infringement patent.
 lawsuit filed united states district court northern district california seeking monetary damages injunctive relief.
 september 2 2003 second patent added.
 defendants answered defenses counterclaims.
 discovery proceeding.
 edwards lifesciences party responsible lawsuits products services manufactured.
 cases raise factual legal issues uncertainties facts circumstances jurisdiction differences law.
 may incur charges reserves.
 charge net income cash flows financial position results operations liquidity.
 subject environmental laws regulations states.
 operations involve substances regulated manufacturing sterilization processes.
 difficult quantify potential impact compliance environmental protection laws.
gross net operating loss tax benefit carryforward period ends
 non-united states loss $ 35. $ 9. 2005 20132014
 29. 13.
 $ 64. $ 23.
 edwards lifesciences financial statements 2014 december 31 2004 $ 64. million losses $ 1. million non-expiring tax credits.
 december 31 2004 tax benefit loss $ 35. $ 9. 2005 20132014 29. 13. total 64. 23. valuation allowance $ 6. 8 million carryforwards.
 reduces deferred tax asset $ 23. million.
 income tax returns examined local taxation authorities.
 adjustments.
.
 lifesciences lawsuit.
 medical.
 patents.
 monetary damages injunctive relief.
january 7 2005 settlement agreement edwards lifesciences paid $ 5. million.
 granted.
 paid-up license heart valve therapy products lawsuit dismissed.
 settlement financial impact company.
 august 18 2003 edwards lifesciences filed lawsuit against medtronic.
.
 infringement patent.
 lawsuit filed united states district court northern district california seeking monetary damages injunctive relief.
 september 2 2003 second patent added.
 defendants defenses counterclaims.
 discovery proceeding.
 edwards lifesciences party responsible lawsuits products services.
 factual legal issues uncertainties jurisdiction differences law.
 lifesciences may incur charges reserves.
 net income cash flows financial position results operations liquidity.
edwards lifesciences subject environmental laws within outside united states.
 operations involve substances manufacturing sterilization.
 difficult impact compliance


consolidated financial statements march 31 2004.
 income taxes effective tax rate differs statutory 34% due recognize deferred tax assets operating losses tax credits.
 valuation allowance $ 2400000 stock option compensation deductions.
 tax benefit credited equity realized.
.
 applies disclosure provisions.
 guarantees indebtedness statements.
 57 107.
.
 agreements guarantee indemnification clauses.
 disclosure provisions.
 guarantors guarantees.
 company guarantor.
 product warranties accrues estimated future warranty costs sales.
 products regulation quality standards.
 warranty obligation affected product failure rates.
 results cost estimated warranty.
 patent indemnifications indemnifies patent infringement.
 limits.
 incurred costs defend lawsuits patent infringement claims.
.
 45 intellectual property indemnifications require disclosure.
 company leases facilities danvers massachusetts through 2010.
 buyout option early termination 2005.
 rent expense $ 856000 $ 823000 $ 821000 years 2002 2003 2004.
 36-month leases $ 644000 office furniture.
 ended 2003 furniture purchased.
 rental expense $ 215000 $ 127000.
 36-month capital lease computer equipment software $ 221000.
 2003 assets purchased.
 future minimum lease payments non-cancelable leases 2004.
 leases
 781
 2006 776
 2007 769
 2008 772
 2009
 708
 lease payments $ 4578
 involved legal administrative proceedings claims.
litigation contains uncertainty management company general counsel believes outcome of proceedings pending threatened adverse effect company.


$ 125 million maintenance costs $ 18 million.
 profits 2012 $ 184 million acquisition temple-inland mill divestiture $ 91 million restructuring european packaging $ 17 million $ 3 million gain other items 2011 temple-inland $ 20 million $ 7 million other items.
.
 $
 profit
 sales $ 11. 6 billion 2012 8. billion 2011. billion 2010.
 profits $ 1. billion. 763 million facility closure.
 sales volumes flat.
 sales price lower export containerboard.
 input costs lower recycled fiber wood natural gas higher starch.
 freight costs.
 maintenance downtime costs higher.
 inventory valuation adjustments 235 million temple-inland synergies.
 market-related downtime 570000 tons 380000 2011.
profits 2012 $ 184 million acquisition temple-inland $ 91 million divestiture three containerboard mills.
 2011 $ 20 million temple inland.
 2013 sales volumes first quarter increase higher shipping days.
 price containerboard price increase.
 input costs higher recycled fiber wood starch.
 maintenance downtime costs $ 26 million higher outages eight mills.
 costs lower.
 packaging net sales $ 1. 0 billion 2012 $ 1. billion 2011 $ million 2010.
 profits $ 53 million 72 $ 66 million etienne mill 2011 $ 70.
 sales volumes lower decreased demand weaker economic environment.
 flat.
 sales margins increased price increases lower board costs.
 costs higher energy distribution.
 net gain $ 10 million insurance settlement offset costs earthquakes.
first quarter 2013 sales volumes stable seasonal decrease increase industrial.
 sales margins improve lower input costs.
.
 operating costs higher earthquake insurance settlement sales profits sca pack aging 2010.
 net sales $ 400 million 2012 410 2011 255.
 operating profits $ 2 million loss $ 7 million.
 higher sales margins offset lower sales volumes higher raw material operating costs.
 first quarter 2013 sales volumes margins decrease seasonality.
 net sales distribution $ 260 million 2012 2011 240.
 operating profits $ 3 million breakeven.


turkey restructuring costs $ 53 million 72 million 2012 $ 66 million 61 closure etienne mill france 2009.
 sales volumes 2013 higher 2012 strong demand agricultural morocco turkey.
 decreased weak demand poor weather.
 sales margins lower costs.
 costs energy.
 profits 2013 2012 gains $ 13 million $ 10 million insurance settlements government grants offset additional operating costs earthquakes.
 2014 sales volumes increase higher demand.
 margins improve reductions material costs box price increases.
 input costs flat.
 brazilian packaging orsa paper embalagens. 75% share.
 net sales $ 335 million 2013.
 profits $ 2 million $ 2 million acquisition costs.
 2014 sales volumes lower 2013.
 margins improve sales price increase favorable product mix.
input costs lower.
 packaging sales $ 400 million 2013 2012 410 2011.
 profits loss $ 5 million 2013 $ 2 million 2012 2 2011.
 impacted higher sales margins volumes offset higher operating costs.
 2014 sales volumes margins seasonally soft.
 sales distribution $ million 2013 260 2012 2011.
 profits $ 3 million 2013.
 demand commercial printing advertising direct mail volumes employment.
 currency rates.
 cost drivers manufacturing efficiency raw material energy freight costs.
 net sales 2013 flat 2012 2011.
 profits 55% lower 2012 69% lower 2011.
 15% lower 2012 40% 2011.
 lower operating costs $ maintenance outage costs 17 offset lower sales price sales volumes higher input costs higher other costs 34.
 $ 118 million closure courtland mill.
2013 accelerated depreciation courtland assets evaluated uses.
 net value $ 470 million.
 evaluation conclude uses first quarter.
 profits 123 million impairment charge trade name intangible asset india papers.
 profits 2011 $ 24 million gain repurposing franklin virginia mill $ 11 million impairment charge scotland mill closed 2009.
.
 printing papers sales $. billion 2013. billion 2012. billion 2011.


company debt capital markets long-term funding.
 funding decisions guided by capital structure planning objectives.
 goals maximize financial flexibility preserve liquidity interest expense.
 debt accessed through global capital markets.
 investment grade credit rating important financing strategy.
 long-term credit ratings bbb baa2 s&p moody.
 contractual obligations future payments debt purchase.
 maturities long-term debt $ 426 $ 43 $ 811 427 183 7436
 lease
 purchase obligations 3001 541 447 358 1579
 $ 3545 $ $ 1330 $ 853 $ 582 9143
 scheduled principal payments.
 $ 2. 1 billion fiber supply agreements 2006 2008 acquisition weyerhaeuser.
 unrecognized tax benefits $ 101 million.
undistributed earnings foreign subsidiaries december 31 2015 indefinitely reinvested no.
 income taxes provided.
 cash earnings approximately $ 600 million.
 anticipate repatriate funds domestic liquidity needs debt service.
 projected benefit obligation.
 plans.
 $ 3. 5 billion higher fair value plan assets.
 $ 3. 2 billion relates plans minimum funding requirements.
 calculation differs value benefits.
 2008 worker retiree employer recovery act passed.
 pension funding relief technical corrections.
 funding contributions depend funding method timing demographic data targeted funding level.
 contributions $ 750 million $ 353 million years december 31 2015 2014.
 required contributions 2016 future voluntary contributions.
 earnings assets interest rates.
paper announced voluntary opportunity for former employees retirement plan request early payment pension benefit single lump sum payment.
 participants election between february 29 april 29 2016 payment before june 30  2016.
 payments from pension plan trust assets.
 target population total liability $ 3. 0 billion.
 participation rate expected approximately $ 1. 5 billion.
 settlement accounting rules apply.
 plan remeasurement recognition earnings unamortized net actuarial loss.
 holding.
.
 reconciliation disputes.
 agreement amended may 7 2014.
 january 1 2017 company partners.
 purchase 50% interest in ilim.
 transaction approval by antitrust authorities.
 purchase ilim financial position results.


contents financial statements american airlines.
 certificate incorporation transfer restrictions stockholders.
 ownership change no assurance change.
 attached exhibit 3. report form 8-k december 9 2013.
 reorganization items revenues expenses fees gains losses provisions 11.
 table summarizes reorganization items consolidated statement operations december 31 2013.
 labor-related claim $ 1733
 aircraft facility financing renegotiations rejections 320
 fair value conversion discount 218
 professional fees 199
 reorganization items $ 2640
 employees contributions reorganization reductions pay benefits employee deemed claim equity reorganized entity.
 cost savings reductions pay work rule changes.
 total value approximately $ 1. 7 billion.
amounts include allowed estimated rejection modification financings aircraft entry orders unsecured facility agreements bonds.
 debtors recorded estimated claim rejection motion filed estimate claim.
 debtors agreed allow post-petition unsecured claims obligations.
 year 31 2013 american recorded reorganization charges amounts rejected facility revenue bonds $ 180 million unsecured claims 1990 1994 bonds improvements john f.
 kennedy international airport rejected bonds chicago 2019hare international airport.
 plan allowed unsecured creditors conversion discount 3. 5%.
 american recorded fair value discount confirmation bankruptcy.


republic services.
 financial statements 2014.
 fuel swap agreements cash flow hedges mitigate exposure diesel fuel prices.
 swaps effective hedges diesel fuel.
 table summarizes fuel hedges december 31 2016 gallons hedged average contract price per gallon.
 12000000.
 2018.
.
 average price diesel fuel exceeds contract price receive difference counterparty.
 less pay difference counterparty.
 fair values fuel hedges determined standard option valuation models commodity prices.
 aggregate fair values 2016 2015 liabilities $ 2. 7 million $ 37. 8 million recorded accrued liabilities balance sheets.
 changes fair values gain $ 0. 8 million 2016 loss $. 4 million. 5 million 2015 2014 recorded.
 total gain loss hedges $ 20.7 million $ 2. million $ 24. 2 million years 31 2016 2015 2014.
 classify cash inflows outflows fuel hedges statements.
 recycling commodity hedges revenue old corrugated containers newsprint.
 use swaps costless collars cash flow hedges manage exposure prices.
 2016 agreements forecasted occ sales.
 effective hedges recycling commodity sales.
 costless collar agreements sales.
 put option written call option cap strike price.
 calls same settlement dates settled cash terms expiration.
 options no net premium costless collars.
 no payments settlement price between floor cap price above cap pay counterparty excess price volumes.
 below deficit.
 reduce variability cash flows forecasted sales strike prices.


aon european subsidiaries a650 million.
 $ 942 million multi-currency revolving loan facility.
 october 2010.
 commitment fees. payable unused portion.
 borrowed a376 million $ 250 million.
 a307 million borrowed.
 250 million short-term debt.
 guaranteed obligations subsidiaries.
 maintains $ 600 million 5-year.
 credit facility expires february 2010.
 permits $ 150 million letters credit.
 $ 20 million letters credit.
 commitment fees 10 payable unused portion.
.
 consolidated net worth $ 2. 5 billion 4 to 1 debt to ebitda 3 to 1.
 foreign facilities. million $ 74 a25 a20 million $ 29 million.
 not redeemable.
 no sinking fund provisions.
 interest payable semi-annually securities.
long-term debt $ 548 382 million 225 million 2010 2011 2012.
.
 years 31 2007 2006
 interest paid millions $
 interest rates 2014 short-term borrowings. 1%. 4%. 5%.
 noncancelable leases office space equipment automobiles.
 expire renewal expansion options.
 rent escalations real estate taxes.
 81% lease obligations office space.
 expense leases $ million $ 350 million $ 337 million 2007 2006 2005 subleases 40 33 29 million.


stockholders 2019 equity derivative instruments activity net tax non-owner changes equity consolidated statements years december 31 2008 2007 2006.
 2007
 balance january 1 $ 2014 $ 16
 fair value -9 -6 ( 6 75
 reclassifications earnings -61 (
 balance december 31 $ -7 ( 2014
 investment foreign operations 31 2007 hedges foreign currency.
 2006 entered zero-cost collar derivative protect price fluctuations. million shares sprint nextel.
 second quarter 2006 received 1. 9 million shares embarq corporation.
 derivative adjusted.
 not hedge.
. recorded net gain $ 99 million year december 31 2006 consolidated statements.
 2006 sprint nextel derivative terminated settled cash.6 million shares sprint nextel converted sold.
 received $ 820 million settlement derivative sale. million.
 loss $ 126 million sale remaining.
 recorded net gain $ 99 million derivative.
 instruments include cash equivalents sigma fund investments short-term investments accounts long receivables payable accrued liabilities derivatives financing commitments.
 derivatives recorded balance sheets fair value.
 instruments long-term debt carried at cost.
 fair value long term debt december 31 2008 $ 2. 8 billion carrying value $ 4. 1 billion.
 not indicative.
-for-sale equity securities portfolio value $ 128 million cost basis $ 125 million net unrealized loss $ 3 million.
 held trading.


consolidated financial statements 2014 becton dickinson company reclassifications interest expense cost products.
 details cash flow hedges note 13.
 august 25 2016 proceeds divestiture respiratory solutions business 2017 accelerated share repurchase agreement.
 2016 received 1. 3 million shares common stock $ 220 million increase.
 2014 earnings per share common shares years september 30.
 2015
 common shares 212702 202537 193299
 equivalents 4834
 shares 2014 207509
 acquisition carefusion corporation march 17 2015 issued 15. million common shares purchase.
 disclosures note 9.
 options purchase shares excluded diluted earnings.
 years september 30 2016 2015 2014 no options purchase diluted earnings.


consolidated financial statements 2013 amounts millions share debt transactions note 6 acquisition acxiom october 1 2018.
 senior notes september 21 2018 fund acquisition fees expenses issued $ 2000. unsecured senior notes four series $ 500. each.
 consolidated balance sheets discount $ 5. 8 capitalized debt costs commissions offering expenses $ 16. amortized interest expense maturity dates method.
 payable semi-annually april 1st october 1st year commencing april 1 2019.
 issuance four series notes par value discount net price cost net proceeds.
 3. 50%. 50 % 2020 500. 499.
. 75%. 75 % 2021.
. 65%. 65 % 2028.
. 40%.40 % senior notes due 2048 500. 2. 497. 5. 6 491.
 $ 2000. $ 5. $ 1994. $ 16. $ 1978.
 issued senior notes covenants limit liens consolidated subsidiaries require financial ratios net worth liquidity.
 redeem indenture supplemental.
 acquisition terminated june 30 2019 redeem notes due 2020 2021 2028 redemption price equal 101% principal plus accrued unpaid interest.
 change control repurchase holder purchase price equal 101% principal interest unless option redeem.
 loan agreement october 1 2018 acxiom acquisition fees expenses borrowed $ 500. debt financing three-year term loan agreement $ 100. paid down december 3 2018.
 covenants limit liens consolidated subsidiaries.
maintain financial covenants.
 loans bear interest variable rate base eurodollar rate margin determined credit ratings.
 december 31  2018 margin 0. 25%. base rate 1. 25%. eurodollar rate.


divestiture arrow moores businesses unfavorable sales international plumbing decreased sales percent.
 sales 2016 increased volume plumbing paints coating builders' hardware.
 cabinets windows price increases north american windows plumbing.
 lower volume cabinets prices paints.
 gross profit margins 32. 34. 33. 4 percent 2018 2017 2016.
 2018 impacted commodity costs inventory adjustment acquisition expenses unfavorable sales mix.
 offset selling prices cost savings initiatives increased sales volume.
 2017 profit margin impacted increased sales volume prices commodity costs cost savings initiatives.
 expenses 17. percent 2018. 2016.
 driven fixed expenses increased sales volume improved cost control.
 operating.
 profit $ 1211 1194 1087
 rationalization charges
kichler inventory adjustment 2014
 profit $ 1265 $ 1198 1109
. 5%. 5 %. 6%. 6 %. 8%. 8 %
. 1%. 7%. 7 %.
 affected commodity costs inventory adjustment acquisition logistics.
 offset selling prices cost savings sales volume.
 profit 2017 sales volume savings commodity costs.
 impacted strategic growth investments expenses.
 tariffs imported materials 25 percent 2019 $ 150 million annual cost increases.
 mitigate price increases supplier negotiations supply chain repositioning productivity measures.
 $ 14 million pension post-retirement benefit cost $ 8 million foreign currency losses.
 offset $ 3 million earnings equity investments $ 1 million distributions private equity funds.
2017 26 million pension 13 million loss divestitures $ 2 million equity fund offset 3 million distributions 1 million earnings equity.


tower corporation subsidiaries financial statements december 31 2005 federal state loss carryforwards future taxable income $ 2. 2 billion $ 2. 4 billion.
 utilized loss carryforwards expire.
 2006 to 2010 $ 5248 469747
 2011 to 2015
 2016 2020
 2021 2025
 $ 2157503 $ 2418012
.
 valuation allowance. valuation allowance $ 422. 4 million $ 249. 5 million spectrasite loss.
 $ 237. 8 million allowance assumed.
 balance state deferred tax assets.
 remaining deferred tax assets federal operating loss carryforwards twenty-year.
 recover deferred tax asset federal income tax refund claims losses.
 2003 filed income tax refund claims $ 380.million net operating losses prior 2003 company anticipated receiving $ 90. million.
 revised estimate federal income tax refund anticipates refund $ 65. million end 2006.
 no assurances specific amount timing refund.
 recoverability net deferred tax asset assessed stable state projections.
 decrease depreciation interest expense assets depreciated first years debt repayments reducing interest expense.
 recoverability not dependent on improvements operations asset sales non-routine transactions.
 management believes deferred asset realized.
 realization $ 1. 3 billion taxable income january 1 2006 to december 31 2025.
 income reduce net deferred tax asset income tax expense stockholders 2019 equity.
 company subject tax authorities.
 assesses additional assessments.


1b.
.
 rail business.
 network covers 23 states.
 includes 31974 route miles.
 own 26012 miles operate remainder trackage rights leases.
 table miles december 31 2014 2013.
.
 31974 31838
 switching 51172 50861
 omaha nebraska.
. 2 million square feet space 4000 employees.


2016 annual report performance graph five-year period june 30 2016 market performance company common stock s&p 500 index peer companies 5 year return jack henry associates. s&p 500 index peer group line graph.
 2011 2012 2013 2014 2015 2016
. 161. 228.
. 174. 219. 251.
. 158. 170.
 comparison assumes $ 100 invested june 30 2011 reinvestments dividends.
 returns calculated market capitalization peer group members.
 peer companies computer software hardware services financial institutions.
 aci worldwide. bottomline. broadridge financial cardtronics. convergys. corelogic. dst. euronet. fidelity. moneygram. systems. tyler.verifone systems.
 heartland.
 removed peer group global payments.
.


transaction recognized net gain $ 1. 3 billion $. 2 billion 2016.
 $ 2. 5 billion lockheed martin common stock $ 1. 8 billion cash payment less book value is&gs business $ 3. billion 2016 adjustments $ 100 million.
 2017 additional gain $ 73 million post-closing adjustments tax adjustments net working capital.
 results&gs discontinued operations statements.
 divestiture shift.
 cash flows reclassified retained.
 results 2016 divestiture earnings discontinued operations 2016.
 net sales 3410
 cost sales -2953
 severance charges
 gross profit 438
 income
 operating profit
 earnings
 tax expense -147
 net gain divestiture discontinued 1205
 net earnings
 results different.
net earnings discontinued operations include costs attributable to is&gs business exclude corporate overhead costs.
 reclassified $ 82 million 2016 corporate overhead costs unallocated.
 retained assets obligations pension benefits former is&gs employees through divestiture.
 non-service net pension costs. reclassified from results pension adjustment.
 net pension costs were $ 54 million year december 31 2016.
 pension costs transferred to leidos discontinued operations.
 severance charges recorded at lockheed martin office.
 reclassified into excluded from.
 reclassified were $ 19 million in 2016.
 cash flows consolidated december 31 2016 not significant.


cme invests assumed investment choices.
 balances subject to claims creditors totaled $ 38. 7 million $ 31. 8 million at december 31 2012 2011.
 value recorded securities equal liability.
 results impact on net income income compensation expense.
.
 maintains benefits for employees impacted statutory limits.
 subject vesting requirements.
 deferred compensation plan.
 officers board contribute compensation defer taxes distribution.
 2019 retirement plan.
 retirement benefit plan.
 long-term limited.
 no new participants after.
 fund minimum annual contribution $ 0. 8 million until funded.
 benefits based on actuarial assumptions.
 contributions $ 0. 8 million 2010 2012.
 december 31 2012 2011 totaled $ 22. 7 million $ 21. 6 million.
 assets fair value $ 18.4 million. 7 million allocated 31 2012 2011 securities cash equivalents consolidated balance sheets.
 subject creditors comex.
.
 leases.
 non lease agreements 2012 sold buildings chicago.
 leased back.
 30 2027 four renewal options five years.
 2011 office space london.
 terminates march 24 2026 option penalty 2021.
 2008 renegotiated lease headquarters 20 south wacker drive chicago.
 november 30 2022 two renewal options seven ten years contraction option occupied space november 30 2018.
 lease expansion option december 2017.
 2006 additional office space chicago.
 terminates november 30 2023.
 two 5-year renewal options 2023.
 2012 future minimum payments leases payable.
.
.
.
.
.
152. 9
.


consolidated financial statements union pacific corporation subsidiary companies references 201ccorporation subsidiaries railroad company 201crailroad.
.
 class i railroad.
 network 32122 route miles pacific gulf coast ports midwest eastern.
 gateways mexican gateways.
 own 26042 miles operate remainder trackage rights leases.
 serve western two-thirds country coordinated schedules rail carriers freight atlantic pacific coast southeast southwest canada mexico.
 export import traffic gulf coast pacific coast ports mexican canadian borders.
 railroad subsidiaries affiliates reportable operating segment.
 financial results segment.
 freight revenue commodity group.
 agricultural products
 automotive
 chemicals
 coal
 industrial products
intermodal 3835 3714 4074
 freight revenues $ 19837 $ 18601 $ 20397
 1403 1340 1416
 operating revenues $ 21240 $ 19941 $ 21813
 revenues customers. outside.
 commodity shipments mexico.
 freight revenues $ 2. billion 2017 $. billion 2016 $. billion 2015.
 consolidated financial statements accounting principles.
.
.
 union pacific corporation subsidiaries.
 affiliated companies 50% equity method.
 intercompany transactions eliminated.
 no majority-owned investments consolidation variable interest.
 maturities three months less.
 reduced allowance doubtful accounts.
 historical losses credit worthiness economic conditions.
 receivables other assets.


september 28 2013.
 share repurchase program shares.
 open market transactions rule securities exchange act 1934.
 august 2012 accelerated share repurchase arrangement financial institution $ 1. 95 billion common stock 2013.
 first quarter 2. 6 million shares delivered.
 april 2013 ended additional 1. 5 million shares delivered.
 4. 1 million shares delivered average repurchase price $ 478. 20 per share.
 retired up-front payment $ 1. 95 billion equity.
 april 2013 new program financial institutions purchase $ 12 billion common stock.
 $ 12 billion 2014.
 average price share determined volume average price.
 third quarter 2013 23. 5 million shares delivered retired.
 final.
up-front payments $ 12 billion shareholders 2019 equity.
 repurchase common stock earnings forward contracts indexed common stock.
 not derivative instruments.
 repurchased 19. 4 million shares common stock average $ 464. 11 per share total $ 9. billion.
 shares retired repurchase.
 2013 net.
 revenue expenses gains losses excluded.
 foreign currency translation adjustments.
 deferred gains losses derivative instruments cash flow hedges unrealized gains losses securities available-for-sale.
 components september 28 2013 29 2012.
 foreign currency translation -105
 unrecognized gains/losses derivative instruments -175 -240
 unrealized gains/losses marketable securities -191
 income $ -471


. 1 million acres. 7 million hectares.
 products brand trademarks international paper.
 non-durable goods processed foods poultry meat agricultural products.
 raw material energy costs freight costs manufacturing efficiency product mix.
 sales profits temple-inland brazil packaging business 2013.
 acquisition olmuksa international paper. net sales corrugated packaging totals 2013 higher ownership percentage.
 net sales 2013 increased 12% % $ 14. 8 billion $ 13. 3 billion 2012 42% $. billion 2011.
 profits 69% ( 69 % higher 2012 57% 57 % higher 2011.
 temple-inland 36% ( 36 % higher 2012 59% % higher 2011.
 lower sales volumes 73 higher operating costs 64 maintenance costs input costs $ 102 million.
profits 2013 $ 62 million temple-inland gain $ 13 million turkey net gain $ 1 million other items 2012 $ 184 million temple mill divestiture $ 91 million restructuring european packaging business $ 17 million $ 3 million gain items.
.
 sales $ 14810 13280
 profit
 north american packaging net sales $ 12. 5 billion 2013 $ 11. billion 2012. billion 2011.
 profits $ 1. 8 billion.
 sales volumes decreased 2013 demand.
 sales price higher increases containerboard boxes.
 input costs higher recycled.
 freight costs.
 maintenance downtime costs higher.
 costs decreased offset inflation overhead distribution costs.
 850000 tons downtime 450000 market- related 400000.
 2012 945000 tons downtime 580000 market-related 365000.
profits 2013 $ 62 million temple-inland.
 2012 $ 184 million acquisition $ 91 million divestiture containerboard mills.
 sales volumes shipping days winter weather.
 costs higher energy recycled fiber wood starch.
 maintenance downtime spending $ 51 million higher outages six mills.
 manufacturing costs lower.
 impacted winter weather 2014.
 packaging sales operations turkey consolidated.
 $ 1. 3 billion $. 2012. 2011.
 profits $ 43 million


s&p global 2018 report.
 millions level 3
 balance december 31 2017 $ 39
 purchases 2014
 distributions -2 2
 gain loss
 balance december 31 2018 $ 39
 active markets trustee determines value 2019 prices pricing vendors.
 applies pricing.
 pricing vendors.
 prices managers.
 domestic defined benefit plans investment stock s&p 500 index.
 obtains prices level 3.
 assets pension trusts 2019 allocations two trusts.
.
.
 assets $ 1572 million $ 1739 million december 31 2018 2017 target allocations 75% fixed income 16% domestic equities international equities.
.
 $ 415 million $ 480 million target allocations 40% fixed income 30% diversified growth funds 20% equities 10% real estate.
pension assets invested capital growth income liability hedge.
 mix established performance risk characteristics.
 investments returns capital reduce volatility.
 holdings diversified.
 portfolios employ index managed equity strategies.
 fixed income strategies.
 securities opportunistic.
 debt instruments.
 short-term portfolio capital preservation government-agency securities uninvested cash receivables payables.
 financial leverage.
.
.
 managed indexed funds target s&p global.
 stock stable value money market strategies.
 self-directed mutual fund.
 purchased sold 205798&p.
.
.
 held. million shares.
 market values $ 251 million $ 255 million.
 dividends.
 $ 3 million.
.
 incentive awards employees directors incentive plan deferred stock ownership plan.
2002 employee stock incentive plan permits nonqualified stock options appreciation rights performance stock restricted stock awards.
 one-time incentive stock options kensho employees acquisition kensho 2018.
 2022 director deferred stock ownership plan common stock credited deferred stock accounts directors.
 50% directors 2019 compensation dividend deferred stock accounts.
 defer remaining compensation shares credited deferred stock.
 recipients.
 shares delivered board five years.
 plan terminated no shares.


statutory surplus insurance 2012 2011.
. insurance $ 6410 7388
 property casualty insurance 7645
 $ 14055 14800
 capital surplus.
 decreased $ 978 annuity surplus $ 425 $ 200 increase reserves transfer mutual funds.
 asset valuation reserve $ 115.
 january 2013 gain sale retirement plans businesses 2013.
 surplus $ 8. 1 billion $ 1. 5 billion extraordinary dividends.
 property casualty insurance subsidiaries increased $ 233 net income $ 727 unrealized gains $ 249 deferred tax assets $ 77  capital contributions $ 14 $ 7  offset dividends $ 841.
 hartford holdings.
.
 holds regulatory capital surplus operations.
accounting practices regulatory company statutory capital surplus $. billion $. 3 billion december 2012 2011.
 stockholders equity.
 principles.
 $ 22. 4 billion december 31 2012.
 estimated statutory capital surplus national association insurance commissioners accounting practices.
 $ 14. 1 billion december 31.
 differences between.
 equity statutory capital surplus.
.
 excludes equity non-insurance foreign insurance subsidiaries.
.
 costs insurance policies deferred.
 expensed.
 differences tax basis evaluated recoverability.
 subject limitations.
.
 assumptions life benefit reserves.
.
.
 methodologies life insurance reserve amounts.
 benefit reserves.
 addressed by annuity reserving valuation methodology actuarial guidelines.
 embedded derivatives recorded fair value reserves.
sensitivity life insurance reserves to changes equity markets different between.
.
.
 difference between amortized cost fair value of fixed maturity investments recorded as carrying value asset equity under.
.
 records securities at fair value lower rated.
.
 establishes reserve for losses due to default equity risks.
.
 gains losses interest rates.
 defers amortizes gains losses interest rates into income over original maturity reserve.
.
 goodwill from acquisition business tested for recoverability annual.
.
 goodwill amortized over 10 years goodwill limited.


provide to governmental agencies entities under environmental regulations landfill operations for closure costs performance collection landfill transfer station contracts.
 surety bonds letters of credit insurance policies trust deposits included in cash marketable securities assets consolidated balance sheets.
 determined by state environmental regulations.
.
 states require third-party engineering specialist determine costs.
 from obligation.
.
 varies by contract.
 assurance for insurance program collateral for performance obligations.
 increase in assurance requirements 2016.
 issued not considered indebtedness.
 not reflected in consolidated balance sheets record capping closure post-closure liabilities insurance liabilities incurred.
 no debt obligations operating leases assurances.
 no transactions obligations not disclosed in reported financial position results operations.
guaranteed third-party debt.
.
 operating activities purchases property proceeds sales consolidated.
 table calculates free cash flow 31 2015 2014 2013 millions.
 operating activities $ 1679. 7 $ 1529. 8 $ 1548.
 purchases property -945. 6. -862. 5 862. -880. 8 880.
 proceeds sales 21. 35. 23.
 cash flow $ 755. 3 $ 703. $ 691.
 changes free cash flow investing activities.


entergy interest income 2002 due interest 2001 grand gulf 1 decommissioning trust funds mississippi new orleans deferred system energy costs recovered interest declining deferred fuel balances.
 decrease interest 2002 $ 31. 9 million long-term debt retirement 2001 2002 $ 76. million interest expense system energy reserve rate refund 2001.
.
.
 increase interest charges $ 61. 5 million final order 1995 system energy rate filing debt arkansas gulf mississippi new orleans borrowings credit facilities arkansas.
 increase earnings 2002 $ 128 million to $ 201 million indian point 2 vermont yankee purchased september 2001 july 2002.
 increase earnings $ 49 million to $ 128 million operation fitzpatrick indian point 3.
 key performance measures.
 2002 2001 2000
 31 3955 2475
 29953 22614 7171
 93%
 fluctuations non-utility nuclear indian point 2 vermont yankee revenues 411. million $ 1. 2 billion maintenance expenses 201. million $ 596. million depreciation amortization expenses 25. million $ 42. million fuel 29. million 105. 2 million nuclear refueling 23. million 46. million


american airlines.
 financial statements 2014 funding relief pension plans losses market slide 2008.
 2010 contribution defined benefit pension plans reduced $ 525 million to $ 460 million.
 payments retiree medical pension.
 2011
 2012 602
 2013
 2014 729
 2015 785
 2020 4959 989
 2008 settlement charge $ 103 million distributions defined benefit pension plans pilots retired.
.
 settlement accounting cost settlements exceeds service interest cost net pension expense.
 unrecognized gains losses recognized reduction benefit obligation.
.
 intangible assets $ 708 million $ 736 million december 31 2010 2009.
 indefinite life assets tested for impairment annually.
 changes network capacity open skies agreements.
fourth quarter 2010 company impairment testing international slots routes net carrying value reassessed recoverability.
 fair value routes latin america less carrying value.
 incurred impairment charge $ 28 million values.
 minimal market activity valuation measures fair value income approach.
 discounted.
 inputs unobservable reflect assumptions market level 3 fair value hierarchy.
 inputs developed information december 31


vroman 39.
 managing director commodity products otc services information since 2010.
.
 managing chief corporate development officer 2008 2010.
.
 joined 2001 positions managing director corporate development information technology services.
.
 warren.
 managing director equity index services since february 2010.
.
 managing director equity products 2007.
.
 goldman sachs president manager trading business analysis.
.
 managed equity option execution clearing amro senior consultant arthur andersen co.
.
 track revenues geographic location.
 trading volume.
 international telecommunication hubs.
.
 percentage total trading volume globex platform non.
.
. 13% 13 % 9 % 11% 11 %
 telecommunication hubs.
.
annual 10-k quarterly 10-q current 8-k amendments.
 corporate governance principles director conflict interest policy ethics independence standards employee code conduct charters committees.
 copies available shareholders request shareholder relations member services.
 hausoul group. 20 south wacker drive chicago illinois.


humana inc.
 financial statements 2014 market prices unobservable inputs used.
 auction securities valuation methodologies sector issuer collateral maturity liquidity.
 no standards results financial condition cash flows.
.
 metropolitan health networks. care medicare beneficiaries recipients florida.
 paid $ 11. per share shares repaid debt $ 851 million expenses.
 preliminary values assets liabilities assumed.
 cash equivalents
 receivables 28
 current assets
 property equipment
 goodwill 569
 intangible assets 263
 long-term assets
 assets acquired 972
 liabilities
 long-term
 assets acquired
 goodwill health well-being services not deductible tax.
 intangible assets customer contracts trade names life 8. 4 years.
october 29 2012 acquired equity interest mcci holdings miami florida coordinates medical care medicare medicaid beneficiaries florida texas.
 metropolitan mcci transactions integrated care model markets.
 revenues metropolitan services humana medicare advantage members.
 mcci provide services medicare third party plans.
 assume financial risk.


.
 incentive plans awards citigroup grants immediate cash bonus deferred awards program employees.
 shares common stock equity compensation settle vesting stock awards.
 awards awarded first quarter year previous year performance.
 awards valued less than.
 $ 100000 paid immediate cash bonus.
 employees officers subject mandatory deferrals incentive pay receive 25% 60% awards restricted deferred stock deferred cash.
 awards subject deferral award value 50% immediate incentive stock payment award restriction sale transfer 12 months.
 deferred awards restricted deferred stock deferred cash.
 minimum deferral requirement country employment.
 exceptions retirement-eligible employees continuous employment citigroup required vest cap deferred cash stock unit awards.
employment vesting by retirement-eligible employees conditioned refraining from competition with citigroup period unless terminated by citigroup.
 deferred awards vest installments three four-year periods.
 in shares common stock.
 payable in cash earn fixed interest paid principal award vests.
 awards payable cash at vesting value stock.
 vested cap shares sale transfer after vesting deferred cash awards hold back 12 months.
 unvested cap subject to clawback provisions.
 awards subject performance- based vesting condition amounts reduced based pretax loss business.
 minimum reduction 20% for first dollar loss for awards.
 discretionary performance-based vesting condition adverse outcome.awards subject to clawback provision canceled if misconduct imprudent judgment behavior.
 sign-on long-term retention awards deferred cash new hires high potential employees.
 vesting periods terms conditions vary.
 recipients remain employed through vesting dates except death disability involuntary termination misconduct.
 post employment vesting retirement-eligible participants.
 status discretionary annual incentive value per share.
 december 31 2017 36931040 $ 47. 89
 granted 73. 87
 canceled 54.
 49.
 december 31 2018 31728596 $ 57.
-average fair value shares 2017 2016 $ 59. 12 $ 37. 35.
 2018 $ 77. 65 per share.
unrecognized compensation unvested stock $ 538 million 2018.
. 7.


sl green realty corp.
 operating partnership.
 financial statements. 31 2018 pricing models replacement termination cost fair value.
 approximation.
 exposed interest rate changes risks risk management policies derivatives.
 fix debt manage cost borrowing obligations.
 conventional derivative products.
 interest rate swaps caps collars floors.
 prohibit unconventional instruments trading speculative purposes.
 contracts major financial institutions credit ratings.
 employ swaps forwards purchased options hedge transactions.
 gains losses deferred recognized net income interest expense.
 hedges reported cash flow.
 interest rate caps collars.
 risk future cash flows interest payments.
 no net gains losses reported earnings.
 changes fair value hedge reflected accumulated income.
derivative instruments not hedging gain or loss change estimated fair value recognized in current earnings.
 presents basic diluted earnings per share two-class method stock dividends declared.
 computed income by weighted-average shares.
 includes securities unvested restricted stock nonforfeitable dividends.
 diluted reflects potential dilution lower eps.
 includes limited partnership interest.
 dilutive effect of stock options reflected in diluted shares calculation.
 no dilutive effect for exchangeable senior notes conversion premium paid in cash.
 operating partnership presents basic diluted earnings per unit dividends declared.
 computed income by weighted-average units.
 includes participating securities unvested restricted units nonforfeitable dividends.
diluted epu reflects potential dilution securities contracts lower epu amount.
 dilutive effect unit options reflected in weighted average diluted outstanding units calculation treasury stock method.
 no dilutive effect exchangeable senior notes conversion premium paid cash.
 estimates.
 results differ.
 credit risk instruments cash debt preferred equity investments accounts receivable.
 cash investments high quality financial institutions.
 collateral new york metropolitan area.
. realty.
.
. credit evaluations require security deposits letters credit.
 insufficient total lease obligation good faith lost revenue re-tenanting.
 properties real estate portfolio new york metropolitan area.
 tenants various industries.
 credit suisse securities. 8. 2%. annualized cash rent no tenant more than 5. 0%.annualized cash rent joint venture december 31 2018.
 2016 properties contributed 5. 0%. % rent.
 11 2018 7. 4%. 4 % 2017 7. 1%. 1 % 2016. 8%. 8 %
 1185 6. 7%. 7 %. 1%. 1 %. 9%. 9 %
. 5%. 5 % 1515 broadway. 0%. 0 %. 1%. 1 %
. 0% 0% % 5. 9%. 9 %
. 8%. 8 %. 6%. 6 %. 6%. 6 %
 december 31  2018 68. 7% (. 7 % work force covered six collective bargaining agreements 56. 0%. 0 % properties agreements december 2019.
. prior year balances current year.
accounting standards october 2018 fasb.
 2018-17 consolidation 810 improvements guidance variable interest entities.
 decision-making fees indirect interests.
 effective fiscal years december 15 2019.
 early adoption permitted.
 adopted no impact financial statements.
 august 2018 securities exchange commission rule disclosure requirements redundant outdated.
 referred disclosure requirements financial accounting standards board incorporation.
 effective filings november 5 2018.
 impact requirements.
 adopted rule october 5 2018 impact financial statements.
 august 2018 fasb accounting standard update.
 2018-15 intangibles goodwill internal software 350-40 accounting costs cloud computing service contract.
 amendments accounting fees software license costs.
 fiscal years december 15 2019.
 early adoption permitted.
company adopted guidance impact financial statements.
 2018 fasb issued.
 2018-13 fair value measurement topic 820 changes.
 amendment added requirements 820.
 effective fiscal years after december 15 2019.
 early adoption permitted removed modified disclosures additional disclosures.
 adopted guidance impact financial statements.


impairment charge.
 year may 31 2009
 goodwill $ 136800
 trademark 10000
 long-lived assets 864
 $ 147664
 net income noncontrolling interests increased $ 28. million. million 2008.
 acquisition 51% majority interest hsbc merchant services earnings income $ 37. million $. diluted earnings per share.
 operating cash flows operations expenditures debt service strategic investments.
 cash flow investments acquisitions dividends debt repurchase shares.
 cash balances invested short term instruments.
 plan operational needs growth low cost capital.
 credit settlement acquisitions.
 liquidity capital raise additional funds.
 may 31 2010 cash equivalents $ 769. 9 million.
 $ 268. 1 million available cash settlement merchant reserve cash balances.
settlement cash balances surplus funds sponsors obligation.
 cash balances collateral liabilities.
 2010 equivalents $ 199. 4 million reserves.
 reserves strengthens fiduciary standing guidelines.
 equivalents settlement assets obligations financial statements.
 net cash activities increased $ 82. 8 million $. 8 million 2010.
 income operations increased $ 16. 0 million working capital $ 60. 2 million.
 settlement assets obligations $ 80. 3 million accounts receivable $ 13. 4 million offset


debt 7. 1%. % to 6. 9%.
 offsetting income short-term investments reduced rate. 26%. 26 %.
 financing activities 2011. million shares treasury stock acquisition 1. million shares taxes.
 $ 30 million.
 off note 12 pages 72 75.
.
 2014 capital expenditures debt working capital dividend requirements.
 credit facilities $ 2. billion.
 debt covenants 31 2013.
 minimum net worth $ 9 billion debt-to- capital ratio less than 60%.
 worth common stock paid capital earnings treasury stock goodwill charges.
 nonrecourse liabilities.
 debt-to-capital ratio debt net worth.
 $ 15. billion total-debt- to-capital ratio 39% ( 39 % ).
 debt capital markets long-term funding.
decisions guided by capital structure planning objectives.
 primary goals maximize financial flexibility preserve liquidity interest expense.
 majority debt accessed through global capital markets.
 investment grade credit rating.
 credit ratings bbb baa3 s&p.
 contractual obligations for future.
 millions 2014 2015 2016 2017 2018
 maturities long-term debt $ 661 $ 498 $ 571 $ 285 $ 1837 5636
 right offset
 lease 171 133
 purchase obligations 3170 770 642 529 2404
 $ 4002  $ 1401 $ 6495 $ 888 $ 2349
 scheduled principal payments.
 obligations from non-consolidated variable interest entities with investments.
 $ 5. 2 billion interests against.billion debt obligations note 12 securities pages 72 75.
 financial statements.
 $ 3. billion fiber supply agreements 2006 transformation plan forestland sales 2008 acquisition weyerhaeuser containerboard packaging recycling.
 unrecognized tax benefits $ 146 million.
 undistributed earnings foreign subsidiaries indefinitely reinvested.
 income taxes.
 cash reinvested earnings $ 900 million.
 repatriate funds domestic liquidity debt service.
 projected benefit obligation.
 plans.
 $ 2. billion higher fair value plan assets.
 $ 1. 8 billion minimum funding requirements.
 differs present value plan benefits.
 2008 worker retiree employer recovery act.
 pension funding relief technical corrections.


operating expenses 2014.
 compensation benefits $ 5076 $ 4807 $ 4685 6% % 3% 3 %
 fuel 3539
 services materials 2315 2143
 depreciation 1777
 equipment rents 1234 1235 1197
 849
 $ 15235 $ 14517 $ 14181 5% 5 % 2% 2 %
 expenses increased 718 million 2014 2013.
 volume-related expenses depreciation wage inflation.
 fuel price.
 $ 35 million weather costs increased $ 336 million 2013.
 wage inflation logistics costs locomotive overhauls property taxes repairs.
 fuel prices.
 compensation benefits wages payroll taxes health welfare pension postretirement benefits incentive costs.
volume expenses training slower network increased train engine work force wage benefit inflation wages.
 weather-related costs 2014 increased.
 pension postretirement benefits higher work force increases 2013.
 productivity initiatives increases.
 locomotive gasoline vehicles heavy equipment.
 volume growth 7% fuel expense.
 lower locomotive diesel fuel prices $ 2. 97 per gallon 2014. 2013 improvement fuel consumption rate.
 $. gallon. decreased expenses $ 75 million.
 volume decreased 1% fuel consumption increased 2%.
 fuel-efficient coal shipments variances-miles consumption.
services materials 2013 includes outside contractors equipment maintenance expenses materials railroad lines structures equipment facilities transportation lodging train crew trucking contracting intermodal containers leased automobile tools supplies.
 services increased 8% 2013 due operating expenses


agreements cross-default provisions.
 funds obligations.
 mandatory convertible preferred stock may affect market price bd common stock.
 price influenced by.
 price could volatile depressed by potential resale additional shares possible sales hedging arbitrage trading activity.
.
 unresolved staff comments.
.
.
 executive offices in franklin lakes new jersey.
 october 31 owned leased 380 facilities 24658363 square feet manufacturing warehousing administrative research facilities.
.
 facilities 8619099 square feet owned 4407539 square feet leased space.
 international facilities 8484223 square feet owned 3147502 square feet leased space.
 sales offices distribution centers.
 operations at.
 international locations.
international marketplace facilities serve business segment purposes manufacturing warehousing.
 manufacturing facilities some leased.
 table property business segment.
 medical interventional
 leased
 owned
 44 109 89
 square feet 3958668 10946766 24658363
.
 good construction physical condition operations utilized normal capacity.
.
 alabama arizona california connecticut florida georgia illinois indiana maryland massachusetts michigan minnesota missouri montana nebraska new jersey york north carolina ohio oklahoma oregon pennsylvania rhode island south carolina tennessee texas utah virginia. wisconsin puerto rico.


financed acquisition $ 1. billion loan $ 1. billion unsecured notes 61 million shares common stock.
 stock options converted into 4. 5 million shares common stock.
 detailed note 9 12.
 transaction accounted method assets acquired liabilities recognized fair values acquisition date.
 preliminary amounts.
 values not subject to change.
 amounts.
 no one year from acquisition preliminary values.
 working capital 391
 property equipment software 319
 intangible assets
 1800
 trademarks 890
 technology 215
 noncurrent assets 344
 long-term debt 346
 liabilities 361
 deferred tax liability 1035
 assets acquired 2217
 goodwill 2715
 consideration transferred $ 4932
cash equivalents investments receivables assets accounts payable liabilities.
 deferred costs investments.
 unfavorable lease obligations deferred revenues.
 assets $ 31 million deferred tax $ 62 million liabilities $ 32 million $. billion.
 relationships amortized 12 years.
 technology asset 7 years trademarks indefinite.
 goodwill synergies benefits combining hewitt aon future benefits


consolidated financial statements 2016 ppg annual report form 10-k loans interest company 2019s option base rates plus margin formulas credit agreement.
 commitment fee unused commitments 0. 080%. to. 225%. per annum.
 average commitment fee 2016 0. 09%. ppg pay 0. 09%. 2017.
 agreement supports commercial paper borrowings.
 december 31 2015 long- term debt.
 no borrowings outstanding december 31 2016.
 credit agreement contains restrictive covenants limitations create liens sale leaseback transactions consolidations mergers transfers.
 covenant ratio total indebtedness to capitalization 60% or less.
 december 31  2016 indebtedness 45% ( capitalization.
 credit agreement contains events default failure payments covenants change control bankruptcy insolvency repayment.
 june 2015 ppg 2019s 20ac300 million. 875%. notes matured paid $ 336 million obligations.
 march 2015 public offering 20ac600 million. 875%. notes due 2022. 400%. 2027. billion. 26 billion.
 issued registration statement indenture bank new york mellon trust company.
 incur liens indebtedness sale-leaseback transactions consolidations mergers transfers leases assets.
 repurchase change control price equal 101% principal amount plus accrued unpaid interest.
 issue additional debt.
 cash proceeds $ 1. 24 billion.
 notes denominated euro hedges european operations.
. november 2014 ppg public offering $ 300 million 2. 3%. notes due 2019.
 issued indenture bank new york mellon trust company..
 company issue debt.
 incur liens indebtedness sale-leaseback transactions consolidations mergers transfers leases assets.
 require repurchase control price 101% principal amount plus accrued unpaid interest.
 november 2014 three euro-denominated borrowings.
 3-year 20ac500 million bank loan interest variable based changes euribor interest rate.
 covenants five-year credit agreement.
 average interest rate. 31%. 31 %.
 15-year 20ac80 million 2. 5%. 5 % 30-year 20ac120 million 3. 0%.
 covenants consistent. notes
 cash proceeds net discounts fees.
 3-year variable rate bank loan 620
 2. 30% 2. 30 % due 2019
 15-year 2. 5%. 5 % fixed rate
 30-year 3. 0%. % fixed
cash proceeds $ 1158
 debt arrangements euro investment hedges operations.
 note 9 instruments hedging value. 2014 debt refinancing redeeming $ 1. 5 billion notes tender 9% debentures 2021. 70%. 2038.
 1000 2021 debentures $ 1334 $ 1506 2038.
 securities.
 $ 90 million redeemed


entergy texas.
 subsidiaries revenues fuel power expenses regulatory charges base rate increases volume/weather effect.
 expenses demand deferred fuel expense lower refunds average market price natural gas.
 regulatory charges distribution $ 17. 4 million 2007 production cost equalization remedy receipts.
 note 2.
 revenue fuel expenses gas power expenses regulatory charges.
 change net revenue 2010 2009.
.
 2009 $ 485.
 wholesale revenue.
 volume/weather.
 rough production cost equalization.
 retail electric price.
 securitization transition charge.
 purchased power capacity.
.
 2010 revenue $ 540.
 wholesale increased sales municipal co-op customers new contracts.
 increased electricity usage residential commercial sectors. increase favorable weather.
 electricity usage increased 777 gwh.
production cost equalization variance due additional $ 18. 6 million allocation second quarter 2009 2007 receipts texas retail customers entergy.
 december 2007.
 retail electric price variance due rate actions annual base rate increase $ 59 million august 2010 settlement december 2009 rate case.
.
 securitization transition charge variance due bonds.
 november 2009 entergy texas restoration funding issued bonds bonds.
 offset increase interest long-term debt no impact net income.
 note 5.


adoption.
 company recognizes tax benefits share-based compensation.
 follows approach excluding indirect effects tax deductions.
 tax benefits after tax benefits.
 2008 realized $ 18. million excess tax benefits recorded credit additional paid capital.
 december 28 2008 $ 36. million unrealized excess tax benefits.
 accounted credit additional paid-in capital.
 manufacturing operations tax holidays incentives 2018.
 $ 1. 9 million decrease tax provision net income per diluted share $ 0.
.
 income taxes not provided on $ 14. 7 million undistributed earnings foreign subsidiaries indefinitely invested in operations.
 2007 adopted.
 accounting for uncertainty income taxes fasb statement.
.
.
 recognition impact tax position financial statements likely.
.
equity no effect accounting principle.
 table summarizes uncertain tax positions.
 balance december 31 2007 $ 21376
 tax positions
 december 28 2008 $ 23778
 $ 7. million uncertain tax positions reduce annual tax rate.
 positions change 12 months.
 interest penalties reflected income tax expense.
 no interest penalties accrued.
 1992 2008 subject examination.
.
 401 ( k ) savings plan.
 contributions discretionary.
 2006 contributions $ 2. 6 million $ 1. 4 million $ 0. 4 million.
.
 statements 2014


fund cash requirements 2018 debt repayments investments share repurchases dividend payments acquisitions pension contributions additional short-term long-term borrowings.
 operating cash flow strong.
 december 31 2017 $ 211 million cash equivalents $ 151 million held outside 2016 $ 327 million $ 184 million.
 2015 $ 26 million deferred tax liabilities pre-acquisition earnings.
.
 remaining earnings repatriated 2016 deferred tax liabilities zero december 31 2016.
 2017 $ 2. billion multi-year credit facility expires november 2022.
.
 no borrowings.
 supports $ 2. billion
 commercial paper program. commercial program.
 combined borrowing not exceed $ 2.
 no outstanding.
.
 uncommitted credit lines $ 660 million banks global funding.
.
$ 643 million credit lines available year-end 2017.
 letters credit surety bonds guarantees total $ 198 million commercial business transactions.
 unconditional purchase obligations commercial commitments.
 december 31 short-term borrowing program rated a-2 p-2 moody 2019s.
 long-term credit a- baa1.
 reduction credit ratings limit issue commercial paper affect renew credit facilities increase cost.
 seek additional funding term notes bonds.
 draw $ 2. billion credit facility.
 compliance debt covenants credit agreements indentures.
 obligations.
 millions less 1 year 2-3 years 4-5 years 5
 -------------------------
 notes payable $ 15
 one-time transition tax
 long-term debt
 capital lease obligations
 operating leases 617
2753 242 436 375 1700
 $ 10853 $ 951 1370 2075 6457
 variable rate debt calculated year-end 2017.
 fourth quarter one-time transition tax.
 payable eight years.
 provisional subject adjustment year tax act.
 december 31 2017 gross liability uncertain tax positions $ 68 million.
 estimate liability cash settlement.
 amounts excluded contractual obligations.


financial data supplement 2014.
 banks governments
 united kingdom $ 13852 89585 103439
 cayman islands 31169 31935
 france 23561 28853
 japan 23542 26799
 germany 3485 24018
 netherlands
 luxembourg 6137 7850
 brazil 3398 2165
 australia 557 1414 3979
 italy


digital media business websites mobile video-on-demand services.
 websites include discovery. tlc. animalplanet. howstuffworks. treehugger. petfinder.
 attracted 24 million monthly visitors comscore.
 2011.
 international networks national pan-regional television networks.
 generates revenues from fees operators cable dth satellite advertising.
 discovery channel animal planet tlc lead distributed every pay-television market operational centers london singapore miami.
 largest distribution 200 countries.
 december 31 2011 operated over 150 feeds 40 languages customized language.
 owns operates television networks 2011 education curriculum-based product service postproduction audio services.
 revenues from subscriptions k-12 schools online curriculum-based tools professional development services student hardcopy curriculum content.
education business participates corporate partnerships global brand content licensing with non-profits foundations trade associations.
 businesses include postproduction audio services to motion picture studios independent producers broadcast networks cable channels advertising agencies interactive producers.
 content strategy viewership innovation quality leadership value for network distributors advertising customers.
 content sourced from third-party producers nonfiction production companies independent producers.
 production arrangements categories produced coproduced licensed.
 produced content includes third parties retain editorial control rights costs.
 coproduced content program rights.
 high-cost projects international broadcast partner.
 licensed content films produced by third parties.
.
 animal planet discovery kids
 time travel
 science quest
 home health history
 world espanol.
 famillia..|
 services 17|


2006 impact balance purchase price allocations acquisitions adjustments.
 acquired cuno august 2 2005.
 results industrial transportation business.
 design filtration products fluids.
 3m cuno filtration technologies filtration solutions.
 3m acquired cuno $. 36 billion. 27 billion cash $ 80 million debt repaid.
 intangible assets $ 268 million amortized 5 20 years 15 years.
-process research development charges.
 impact results.
 allocation purchase price.
 2005 cuno acquisition.
 accounts receivable
 inventory
 property equipment 121
 purchased intangible assets 268
 goodwill 992
 other assets 30
 deferred tax
 accounts payable current liabilities
 interest debt
 long-term liabilities
 net assets acquired
 cash paid 1294
 acquired 28
paid acquired $ 1266
 december 31 2005 3m two business combinations purchase $ 27 million.
 3m purchased siemens ultrasound flexible circuit manufacturing line.
.
 produces circuits.
 purchased assets mercury online solutions.
.
 provides hardware software network management services digital signage interactive kiosk networks.
.
 first quarter 2007 product moves segments changes goodwill balances.
 fair value method impact.
.
 impairment annually.
 purchased goodwill acquisitions $ 326 million 2007 $ 55 million deductible tax.
 goodwill $ 536 million 2006 $ 41 million deductible tax.


.
 principal transactions gains losses trading activities.
 fixed income equities credit commodities foreign exchange transactions.
 impact net interest revenue profitability.
 note a04 financial statements.
 include credit valuation adjustments funding adjustments over-the-counter derivatives.
 note 24.
 transactions revenue.
 millions 2018 2017 2016
 interest rate risks 5186 5301 4229
 foreign exchange risks 1423
 equity 1346
 commodity
 credit products
 $ 9062 $ 9475 $ 7857
 revenues government corporate debt municipal securities mortgage securities.
 spot forward trading currencies currency options fixed income securities interest rate swaps financial futures contracts.
 revenues foreign exchange spot forward option swap contracts foreign currency gains losses.
revenues stock corporate debt equity notes equity options warrants.
 crude oil refined natural gas commodities.
 credit.


management financial condition results operations liquidity capital resources growth funded by cash debt financing.
 cash operations finance receivables borrowings cash fund interest dividends new loans capital expenditures working capital restructuring activities pension plans share repurchases acquisitions.
 external funds available acceptable cost.
 2013 long-term debt commercial paper rated baa1 p-2 a- f2 fitch ratings.
 credit arrangements sound balance sheet financial flexibility growth acquisitions.
 assurances future financing terms debt ratings.
 consolidated balance sheets.
 2012 working capital liabilities $ 1079. 8 million increased $ 132. million from 946. million 2011.
 working capital position 2011.
 cash equivalents $ 214. $ 185.
 trade accounts receivable 2013 net 497. 463.
receivables 2013 323. 277.
 62. 49.
 404. 386. 4
 166. 168. 3
 1669. 1530.
 -5.
 -142. -124.
 -441. -443.
 -589. 589. -583. 583.
 capital 1079. 8 946.
 $ 214. 5 million 2012 $ 185. 6 million 2011.
 28. 9 million increase 329. 3 million $ 73. 54. million pension plans 445. 5 million finance receivables 46. 8 million stock purchase option 27. non-strategic equity investment.
 increases offset $ 569. 6 million finance originations dividend payments $ 81. 5 million $ 79. 4 million capital expenditures repurchase 1180000 shares common stock $ 78. 1 million.
.5 million cash equivalents 2012 $ 81. 4 million held outside united states.
 snap-on considers non.
 funds permanently invested foreign operations working capital satisfy regulatory requirements business expansion expect repatriate funds.
 operations.
 repatriation adverse tax.
 income taxes withholding taxes.
 repatriation favorable tax consequences.
 evaluates repatriate cash tax.
 44 snap-on incorporated


realty trust estate depreciation 2006 depreciation amortization.
 31 2003 $ 514177
 additions 82551
 deductions -1390
 balance 2004 595338
 additions 83656
 deductions -15244
 balance 2005 663750
 additions 89564
 deductions -12807 12807
 balance december 31 2006 $


margin declined south/africa caribbean flat north asia.
 large utilities margin increased $ 201 million 37% $ 739 million 2001 538 million 2000.
 increased 10% $ 396 million.
 increased 30% 2001 25% 2000.
 caribbean increased $ 166 million contribution edc.
 north america ipalco cilcorp increased.
 increased $ 165 million $ 296 million 2001 131 million 2000.
 increased 93% $ 268 million 2001.
 18% 2001 2000.
 increased south america caribbean decreased/africa asia.
 south margin increased $ 157 million 38% ( 38 % revenues.
 sul sales.
 caribbean increased $ 39 million 5% revenues.
 lower losses ede este caess.
 decreased $ 10 million losses sonel.
 decreased $ 18 million losses telasi.
 breakdown aes 2019s gross margin 2001 2000.
 north america 2001 $ 912 million 2000 $ 844 million change 8%
 south america $ 522 million 30% $ 416 million 36% % 25% 25 %
 caribbean $ 457 million $ 226 million 21% 21 102%
 europe/africa $ 310 million 22% 22 % $ 371 million 29% 29 %
 asia $ 101 million $ 138 million 22% 22 27% 27
 venezuela colombia.
 increased 38 million 46% $ 120 million 2001 82 2000.
 1% 1 %.
 increase development activities.
 increased 327 million 29% $ 1. 5 billion 2001. 2000.
 16% 2001 2000.
interest expense increased new businesses senior debt 2001 losses instruments.


consolidated financial statements hedge accounting firm applies for interest rate swaps fixed-rate borrowings certificates of deposit foreign currency forward contracts debt exposures non.
 operations commodities-related swap forward contracts variability cash flows sales energy commodities.
 hedge accounting derivative hedge risk.
 document hedging relationship test quarterly.
 fair value hedges interest rate swaps fair value hedges.
 hedge changes value benchmark interest rate. converting fixed-rate obligations into floating-rate obligations.
 applies regression analysis effectiveness fair value hedging relationships changes risk.
 swap effective offsetting changes value risk analysis coefficient determination 80% 80 % or slope between 80% and 125% %.
 hedges gains losses on derivatives included in expense.change value hedged item amortized into interest expense life.
 gains losses hedge ineffectiveness included expense. derivative hedge difference carrying value amortized interest expense.
 note 23.
 table presents gains losses interest rate derivatives hedged borrowings bank deposits hedge ineffectiveness amortization prepaid credit spreads time.
 2014 2013 2012
 interest rate hedges -8683 -2383
 hedged borrowings bank deposits
 hedge ineffectiveness -515 -1684 -1718
 goldman sachs 2014 annual report


aes corporation financial statements 2014 31 2016 2015 reconciliation unrecognized tax benefits millions.
 december 2016 2015
 balance january 1 $ 373  $ 394  $ 392
 additions current year tax positions
 additions prior years
 reductions -1 1 -7 -2 2
 foreign currency translation -3 3
 settlements -13 13 -2 2
 lapse statute limitations -7
 balance december 31 $ 369 $ 373  $ 394
 company subsidiaries examination taxing authorities years.
 assesses outcome unrecognized tax benefit.
 difficult predict outcome tax accrued tax benefits.
 audit outcomes events unrecognized tax benefits uncertainty.
 examinations exceed provision unrecognized tax benefits december 31 2016.
tax rate net income.
.
 discontinued operations brazil distribution portfolio evaluation management strategic shift distribution companies aes sul eletropaulo.
 disposal sul october 2016.
 eletropaulo restructuring liquidity.
 strategic options eletropaulo reduce exposure listing shares novo mercado.
 agreement sale-owned subsidiary aes sul june 2016.
 results financial position.
 after tax loss $ 382 million pretax impairment charge $ 783 million offset tax benefit $ 266 million $ 135 million deferred taxes.
 carrying value asset group $ 1. 6 billion greater fair value less costs sell.
 impairment charge limited assets.
 sale received final proceeds less costs $ 484 million.
 additional after- tax loss sale $ 737 million.
 cumulative impact earnings $ 1.billion.
 reclassification $ 1 billion translation losses net reduction equity $ 92 million.
 pretax loss 2016 2015 $ 1. 4 billion $ 32 million.
 pretax gain 2014 $ 133 million.
 discontinued operations brazil sbu segment.
 accounting policies july 1 2014 adopted.
 2014-08.
 discontinued operations.
 cameroon saurashtra.
 wind projects sold sale 56% 56 % equity interests sonel dibamba


entergy corporation utility companies system energy louisiana non-exclusive franchises.
 louisiana electric franchises expire 2009-2036.
 mississippi mpsc certificates convenience necessity electric service 45 counties western mississippi.
 certificates.
 mississippi franchise fee original franchise.
 entergy new orleans provides electric gas service new orleans except entergy louisiana.
 ordinances option orleans purchase electric gas utility properties.
 entergy texas certificate convenience necessity electric 24 counties eastern texas non-exclusive franchises 65 municipalities.
 50-year franchises.
 franchises expire 2009-2045.
 wholesale power sales.
 no distribution franchises.
 total capability leased december 31 2008.

 arkansas 4999 1883 1839 1207
 gulf states louisiana 3574 2240 971  363
 louisiana 5854 4685  1169
 mississippi 3224 2804 420
 new orleans 745  745
 texas 2543  2274 269
 1139
 22078  14631  5118  2259
 "owned leased capability load carrying capability conditions fuel.
 load capacity projections reviewed additional capacity.
 demand availability economy.
 summer peak load averaged 21039 mw 2002-2008.
 peak load growth flattened annual energy use.
 long-term capacity resources 3000 mw less peak period.
 met capacity shortages short-term power purchases.
 2002 new resources portfolio


2006 earnings first quarter improve higher price realizations increases.
 product demand slow economic growth north america asia eastern europe.
 prices improve increases freesheet paper pulp.
 operating rates improve capacity reductions.
 energy raw material costs high decline natural gas wood costs moderation 2006.
 improvements global manufacturing supply chain overhead costs.
 packaging demand correlated non-durable goods production foods poultry meat agricultural products.
 profitability raw material energy costs manufacturing efficiency net sales 2005 increased 2% 18% higher 2003 international paper distribution.
 operating profits 39% lower 2004 13% % lower 2003.
 sales volume increases improved price realizations strong mill operating performance increased raw material costs downtime costs converting operating costs unfavorable mix other costs.
2005 sale industrial papers business $ 25 million lower earnings.
 370000 tons downtime 230000 tons lack-of-order 170000 tons 2004 5000 tons lack-of-order downtime.
 packaging.
 $ 4935 $ 4830
 profit $
 containerboard net sales $ million 2005 $ 951 million 2004 $ 815 million 2003.
 soft market declining demand lower prices.
 recovered demand rationalization.
 sales volumes trailed 2004 levels.
 volumes rebounded ahead 2004.
 profits decreased 38% 2004 flat 2003.
 improved performance higher wood energy raw material costs increased lack-of-order down time.
 new supply chain model efficiency cost savings.
.
 sales $ 468 million 2005 $ 723 million 2004 $ 690 million 2003.
profits 2005 23% 2004 54% 54 2003 lower industrial papers.
.
 sales $ 2. 6 billion $ 2. 3 billion 2004 $ 1. 9 billion 2003.
 volumes up 10% acquisition box usa.
 sales prices 2004 softened.
 profits 46% 4% 2004 2003 increased linerboard freight energy costs.
 container sales $ 883 mil 865 2004 $ 801 2003.
 profits declined 19% 13% 13 % 2004 2003.
 increase negative costs foreign exchange rates reduction sales prices.
 moroccan box plant acquis results.
 sales $ 104 million paper distribution 50% interest.


hologic.
 financial statements thousands cytyc stockholders received premium $ 16. 50 per share merger.
 no preexisting relationships companies.
 cytyc marlborough diagnostic device company designs markets diagnostics surgical products.
 cervical cancer screening prenatal diagnostics menstrual bleeding early-stage breast cancer.
 shareholders received 132 million shares common stock $ 2. 1 billion cash.
 goldman sachs credit partners.
 lenders financing $ 2. 55 billion debt expenses working capital.
 borrowed $ 2. 35 billion.
.
 purchase price $ 6. 16 billion $ 2. 1 million cash 132 million shares hologic common stock $ 3. 67 billion 16. 5 million vested stock options employees estimated fair value $ 241.million cytyc 2019s notes merger $ 125. million $ 24. 2 million acquisition costs.
 no contingent former cytyc shareholders.
 measured 132 million shares common stock.
 measurement date may 20 2007.
 valued securities average market price.
 weighted average stock price $ 27. 81.
 purchase price.
 cash portion $ 2094800
 value securities 3671500
 vested options 241400
 cytyc 2019s convertible notes 125000
 acquisition costs
 estimated purchase price $ 6156900
 hologic inc november 24 2010 morningstar not not.
 risks damages losses.
 past guarantee future.


jpmorgan chase. report income $ 822 million $ 1. billion.
 private equity $ 391 million 588 million.
 revenue $ 836 million $ 403 million write-downs gains.
 noninterest expense $ 238 million $ 85 million $ 1. billion $. billion.
 revenue $ 3. 2 billion $ 1. billion security gains.
 interest income lower repositioning lower funding benefits.
 net loss $ 918 million $ 2. billion.
 revenue $ 103 million $ 467 million.
 noninterest expense $ 2. billion 3. billion litigation reserves.
 noninterest expense $ 5. billion. reserves.
 treasury cio liquidity funding capital foreign exchange risks.
.
 funds transfer pricing.
funds transfer pricing interest rate foreign exchange risk to treasury cio interest income expense business market rates.
 cio  generates interest income business market rates.
 variance between retained not reflected results.
 treasury cio activities firm.
 asset-liability objectives investing high securities investment portfolio.
 gains losses securities recorded income.
 note 3 12 pages 196 2013214 244 2013248.
 uses securities not derivatives asset-liability objectives.
 recorded trading assets liabilities gains losses recorded principal transactions revenue line statements income.
 196 2013214.
 derivatives classified trading assets liabilities.
 note 6 pages 218 2013227.
 portfolio.
.
 government securities mortgage-backed securities asset-backed securities corporate municipal debt securities.
treasury 2019s portfolio.
.
 government corporate debt.
 december 31 2012 portfolios $ 344. 1 billion $ 21. 3 billion average credit rating aa+.
 note 12 pages 244 2013248.
 liquidity funding risk liquidity risk management pages 127 2013133.
 interest rate foreign exchange risks market risk management pages 163 2013169.
 income statement balance sheet data december 31 2012 2011 2010 securities gains $ 2028 $ 1385 $ 2897 358029 330885 323673 365421 355605 310801.
 gains $ 2028 $ 1385 $ 2897
 358029 330885 323673
 365421 355605 310801
 loans 10241 13006
 7037 13375
 repositioning portfolio.


2018 ppg annual report 10-k crown group october 2 2017 acquired crown. coatings application services business ppg industrial coatings segment.
 crown leading component product finishers north america.
 applies coatings manufactured parts assembled products 11.
 sites.
 facilities assembly warehousing sequencing services.
 serves automotive construction heavy truck alternative energy industries.
 impact sales results not significant.
 results industrial coatings.
 taiwan chlorine industries established 1986 joint venture ppg china petrochemical development corporation chlorine products ppg owned 60 percent venture.
 2013 separation conveyed axiall 60% ownership.
 agreement 40% ownership axiall $ 100 million.
 axiall ppg purchase.
april 2016 axiall cpdc tci.
 june 2016 axiall designated ppg purchase 40% % tci.
 august 2016 westlake chemical acquired axiall wholly-owned subsidiary westlake.
 april 2017 ppg purchase cpdc tci.
 difference acquisition value purchase price loss discontinued operations december 31 2017.
 ownership equity investment earnings consolidated statement note. july 2016. coatings.
 applies coatings parts products.
 on- site regional service centers. canada mexico germany hungary.
 customers ship parts centers paint adhesion electrocoat.
 stage assembly.
 coats 1. 5 million parts per day.
 estimated fair value assets acquired liabilities assumed final purchase price allocation metokote.
.
plant equipment 73
 assets finite lives 86
 goodwill 166
 deferred income taxes
 assets $ 351
 current liabilities
 long-term liabilities
 liabilities $ 45
 purchase price cash $ 306
 net deferred income tax liability tax.
 impact sales results operations not significant.
 no cost savings operating synergies.
 results industrial coatings.


corporation consolidated financial statements contract liabilities assets deferred revenue balance relates subscriptions.
 table changes deferred revenue balance fiscal year.
 balance july 1 2018 $ 510
 deferral revenue 3008
 recognition deferred revenue
 balance june 30 2019 $ 428
 recognized $ 493 million revenue opening deferred revenue balance.
 contract assets immaterial disclosure june 30.
 expenses sales commissions amortization period 12 months.
 costs recorded statements operations.
 applies expedient financing transfer paid 12 months receipt received.
 year recognized $ 316 million revenues performance obligations satisfied.
 remaining transaction price unsatisfied performance obligations june 30 2019 $ 354 million $ 182 million 2020 129 million 2021 $ 35 million 2022 $ 5 million 2023 remainder.
amounts include contracts one year variable consideration sale performance obligations guidance asc 606.
.
 acquisitions disposals transactions 2019 2018 acquired real estate platform buyers sellers.
 total transaction value $ 210 million $ 182 million cash net $ 7 million


performance graph not filed incorporated into valero filings securities act 1933 exchange act 1934.
 graph based historical data not indicative future performance.
 compares return common stock against s&p 500 composite index peer companies five-year period 2007 2012.
 peer group ten alon usa energy. bp cvr energy. hess hollyfrontier marathon petroleum 66 royal dutch shell tesoro western refining.
 chevron exxon mobil replaced with bp psx rds.
 2012 psx independent added group.
 cvx xom replaced with bp rds.
 comparison 5 year cumulative total valero energy s&p 500 index.
 12/2007 12/2008 12/2011
 valero common stock $ 100. $.
 s&p 500.79. 67 91. 93. 61 108.
. 80 76. 88. 111.
. 66. 86. 72 74. 76.
 investment valero stock $ 100 2007.
 return share price appreciation reinvestment dividends.


accruals sales returns rebates discounts reasonable current facts circumstances.
 global rebate discount liabilities included consolidated balance sheet.
.
 5 percent change sales return $ 275 million effect income taxes.
.
 90 percent december 2018 2017.
 roll-forward significant.
 pharmaceutical sales return rebate discount liability balances managed care medicare medicaid.
 sales return rebate discount liabilities beginning $ 4172. 3601.
 reduction net sales returns discounts rebates.
 payments discounts rebates.
 rebate liabilities end year $ 4678. $ 4172.
 adjustments estimates returns discounts results 1 percent consolidated net sales.
 product litigation liabilities contingencies uncertain complex judgments probabilities.
factors product litigation liability reserves contingent liability amounts include merits jurisdiction litigation nature similar matters nature product assessment science likelihood settlement discussions.
 accrue product liability claims incurred not filed based historical experience data product usage.
 accrue legal defense costs product liability contingencies probable estimable.
 consider insurance coverage exposure.
 policy coverage limits exclusions potential denial coverage financial condition length time collection.
 self-insured for product liability losses marketed products.
 consider third-party indemnification.
 considerations nature financial condition length time collection.
 litigation accruals environmental liabilities estimated insurance recoverables reflected liabilities assets consolidated balance sheets.
 review carrying value long-lived assets for potential impairment carrying value recoverable.
identify impairment projected cash flows asset carrying value.
 loss recorded net book value fair value cost basis adjusted.
 goodwill assets reviewed impairment annually indicators.
 comparison fair value carrying impairment.


credit facilities subsidiaries maintain short-term credit arrangements working capital needs.
 $ 2. 9 billion 2015 $ 3. 2 billion 2014 sole use subsidiaries.
 borrowings $ 825 million 2015 $ 1. 2 billion 2014.
 commercial paper program.
.
 2015 2014 no commercial paper outstanding.
 april 19 2013 program.
 increased $ 2. billion.
 paper programs.
 issuance capacity $ 8. billion.
 commercial paper program credit facilities liquidity requirements.
 trade receivables financial institutions.
 arrangements receivables without recourse.
 short-term removed from consolidated balance sheets.
 servicing non-servicing.
 cash flows receivables.
 2014 2013 $ 888 million $ 120 million $ 146 million.
 net proceeds included consolidated statements.
see item 8 note 23.
 sale accounts financial statements.
 $ 28. 5 billion 2015 $ 29. billion 2014.
 debt fixed.
 item 8 note 7.
.
-average all financing cost 3. 0%. 2015. 2%. 2014.
 item 8 note 16.
 fair value measurements statements.
 approval board directors.
 21 2014 filed shelf registration statement.
 securities exchange commission sell debt securities three-year period.
 debt issuances 2015 face value interest rate maturity.
 notes $ 500. 250%. % august 2015
 $. 375%. % interest payable annually february 2016.
 proceeds sale securities corporate purposes.
-average time maturity long-term debt 10. years 2014. 5 years 2015.
 no arrangements.

. dollar notes $ 500 1. 250%. 250 % august 2015 2017
. dollar $ 750 3. 375%. 375 % august 2015 2025
 subsidiaries maintain short-term credit arrangements working capital needs.
 $ 2. 9 billion december 2015 $ 3. 2 billion 2014 subsidiaries.
 borrowings $ 825 million 2015 $ 1. 2 billion 2014.
.
.
 2015 2014 no commercial paper.
 19 2013 program.
 increased $ 2. billion.
 programs.
 issuance capacity $ 8. billion.
 paper program credit facilities liquidity requirements.
 trade receivables unaffiliated financial institutions.
 arrangements without recourse.
 short-term removed consolidated balance sheets.
 servicing non-servicing.
cash flows impacted by trade receivables sold derecognized consolidated balance sheets outstanding unaffiliated financial institutions.
 receivables 2014 2013 were $ 888 million $ 120 million $ 146 million.
 net proceeds included in.
 8 23.
 sale.
 $ 28. 5 billion 2015 $ 29. 5 billion 2014.
 debt fixed.
.
.
 weighted-average all financing cost 3. 0%. 2015 3. 2%. 2014.
 8 note 16.
 fair value measurements.
 approval board directors.
 filed shelf registration statement.
 securities commission sell three-year period.
 debt issuances 2015 interest.
 $ 500. 250%. % 2015
 $ 750. 375%. % interest payable annually february 2016.
 net proceeds sale securities used for corporate purposes.
time maturity long-term debt. 8 years 2014. 5 years 2015.
 2022 no arrangements guarantees obligations.


recorded liabilities litigation settlements.
 changed december 31 2006 millions.
 balance 31 2006 $ 477
 litigation settlements 3
 interest. merchant lawsuit 38
 payments -114
 balance december 31 2007 $ 404
 discover settlement 863
 american express settlement 1649
 other settlements 6
. lawsuit 33
 american express settlement 44
 payments -300
 settlement -863
. lawsuit -100
 payments -1
 balance december 31 2008 $ 1736
.
 2006 issued 13496933 shares common stock donation controlled.
 charitable programs children youth access education technology skills work force.
 vision economy programs microfinance youth education.
 recorded expense $ 395 million equal value shares donated.
2007 2006 $ 20 million cash donations donate $ 40 million operating expenses charitable disbursements first four years.
 additional cash contributions.
 cash stock donations not deductible mastercard tax.
 income tax rate 31 2006 higher 2007 2008.
 expenses increased $ 14 million 2008 decreased $ 2 million 2007.
 due investments leasehold building improvements data center equipment capitalized software.
 decrease 2007 assets depreciated.
 increase leasehold improvements.


organizations evaluate transactions acquisitions fewer.
 effective january 1  2018.
 amendments applied adoption.
 effect asu 2017-01 future acquisitions dispositions.
 october 2016 fasb issued 2016-16 transfers. amendments income tax consequences transfer intellectual property.
 adopt asu 2016-16 effective january 1  2018 no effect consolidated financial statements.
 june 2016 fasb issued 2016-13. amendments change credit impairment.
 model credit losses.
 impairment model held-to-maturity-sale debt securities guarantees.
 effective january 1 , 2020.
 early adoption permitted january 1 2019.
 evaluating effect asu 2016-13 consolidated financial statements.
 january 2016 fasb issued asu 2016-01 instruments financial assets.amendments address recognition measurement presentation disclosure financial instruments.
 supersede equity securities require fair value changes recognized earnings.
 investments consolidation not.
 amendments allow investments price change impairment.
 require enhanced disclosures.
 adopt asu 2016-01 effective january 1 2018 no effect consolidated financial statements.
 active network acquired divisions athlaction topco 1 2017 $ 1. 2 billion.
 delivers cloud software payment technology solutions event organizers fitness.
 acquisition aligns technology strategy adds enterprise software business markets growth.
 summarizes cash non-cash components consideration transferred 2017.
 cash consideration stockholders $ 599497
 global payments common stock
 purchase consideration $ 1171576
funded cash purchase revolving credit facility debt.
 acquisition value 72 2013 payments.
 annual report


goldman sachs group.
 subsidiaries financial statements 2030 interests senior subordinated interests secondary market-making securitization entities interests.
 principal interests securitizations 2014 2018 2012 2017.
 fair value $ 3. 28 billion 2018 $ 2. 13 billion 2017.
 derivative transactions commitments.
 net $ 75 million 2018 $ 86 million 2017 notional $ 1. 09 billion 2018 $ 1. 26 billion 2017.
 exposure loss nonconsolidated table.
 weighted average economic assumptions fair value mortgage-backed retained interests.
 december 2018
 $ 3151 $ 2071
 life 7.
 prepayment rate 11. 9%. 9 %. 4%. 4 %
 10% adverse change
 20% 4. 7%. 7 %. 2%. 2 %
10% ( 10 % ) adverse change $ -75 ( 75 ) $ -35 ( 35 )
 20% ( 20 % adverse change $ -147 ( 147 ) $ -70 ( 70 )
 2030 amounts reflect financial instruments risks.
 changes fair value adverse assumptions.
 impact calculated independently.
 simultaneous magnify counteract.
 constant prepayment rate key.
 discount rate.
 government collateralized mortgage obligations include credit loss.
 reflected.
 firm retained interests not fair value $ 133 million life 4. 2 years 2018 $ 56 million 4. 5 years 2017.
 constant prepayment discount rates sensitivity adverse changes not meaningful december 2018.
 maximum exposure adverse changes $ 133 million 2018 $ 56 million 2017.
.
 variable interest. losses residual returns.
 firm 2019s variable interests in vies include debt loans commitments partnership interests preferred equity foreign currency credit risk guarantees fees.
 interest currency derivatives not risk.
 vies purchase assets debt equity securities collateralized indexed.
 subordination.
 involvement includes securitization financial assets investments loans vies.
 note 11 securitization beneficial interests.
 note 3 consolidation policies definition.
 2018 form


goldman sachs group.
 subsidiaries 9.
 changes disagreements accountants financial disclosure no changes disagreements last two years.
.
 controls procedures evaluation goldman sachs management chief executive officer financial officer disclosure controls procedures rule 13a-15.
 concluded effective.
 no change internal control financial reporting rule 13a-15 fourth quarter 31 2018 internal control.
 report report independent accounting firm part ii item 8 form 10-k.
 9b.
 information.
 10.
 directors executive officers corporate governance page 20 form 10-k.
 audit committee financial experts procedures shareholders recommend director nominees proxy statement 2019 annual meeting filed 120 days 2018.
 code business conduct ethics senior financial officers 2014 part i item 1 form 10-k.
.
executive compensation executive officer director compensation committee board 2019 proxy statement incorporated form 10-k.
 item 12.
 security ownership beneficial owners management stockholder matters common stock management 2019 proxy statement form 10-k.
 table information december 31  2018 securities issued outstanding restricted stock units equity compensation plans 2018.
 securities weighted average exercise price securities future issuance 17176475 68211649 approved.
 securities options weighted average price future issuance
 plans 17176475
 17176475
 2030 securities issued outstanding options rights includes 17176475 shares outstanding rsus.
 awards subject to vesting conditions award agreements underlying shares delivered net tax withholding.
 december 31  2018 no outstanding options.
shares rsus deliverable average exercise price.
 goldman sachs 2018 form