calculations adjusted for interest expense debt instrument.
 issue.
 04-08 effective 2004 fourth quarter.
 delay sfas.
 128r debt cash additional diluted shares earnings until proposed sfas.
 128r effective.
.
 diluted shares earnings restated.
 estimated annual reduction earnings per share $. 02 to $. 03 per share 2005 2004 2003.
 diluted shares earnings impacted until retirement modification debt security.
.
 acquired cuno august 2 2005.
 results industrial business.
 design filtration products.
 technologies.
 acquired cuno for $. 36 billion. billion cash $ 80 million debt repaid.
 intangible assets $ 268 million amortized over 5 to 20 years 15 years.
-process research development charges not material.
acquisition impact results.
 preliminary allocation purchase price table.
 2005 acquisition asset millions.
 accounts receivable 96
 inventory 61
 property plant equipment 121
 intangible assets 268
 goodwill 992
 assets 30
 deferred tax
 accounts payable current liabilities
 interest bearing debt -80
 long-term liabilities
 assets acquired $ 1266
 cash paid 1294
 acquired 28
 2005 two business combinations purchase price $ 27 million cash.
 purchased siemens ultrasound circuit manufacturing line.
.
.
 purchased assets mercury online solutions.
.
 hardware digital signage interactive kiosk networks.


entergy arkansas.
 financing alternatives future estimates could change.
 utility supply plan initiative generation portfolio resources.
 opportunities alternative financing could capital expenditure estimates.
 review vary regulatory constraints market volatility economic trends environmental compliance capital.
 information long-term debt preferred stock maturities notes 5 6.
 wholly-owned subsidiary pays dividends monthly.
 long-term debt indentures restrict retained earnings cash dividends.
 december 31 restricted retained earnings $ 461. 6 million.
 internally generated funds cash debt preferred stock issuances bank financing.
 refinance redeem debt preferred stock prior maturity.
 debt issuances require regulatory approval.
 subject tests charters.
 capacity capital needs.
april 2008 entergy arkansas renewed $ 100 million credit facility 2009.
 debt ratio 65% less capitalization.
 no outstanding borrowings december 31 2008.
 2008 issued $ 300 million 5. 40%. mortgage bonds due august 2013.
 proceeds purchase ouachita power plant 2008 remaining improvements corporate purposes.
 receivables december 31.
 2008 2007 2006 2005
 may 2007 $ 1. 8 million receivable replaced receivable entergy new orleans.
 note 4 financial statements.


gulf states.
 financial discussion.
 2002 net revenue $ 1130.
 17.
 fuel write-offs 15.
 wholesale revenue 10.
 base rate decreases.
 gain.
 refund provisions.
.
 2003 net revenue $ 1110.
 higher electric sales.
 517 gwh residential commercial.
 offset industrial usage 470 gwh loss industrial customers.
 1% net revenue.
 deferred fuel costs $ 8. million written. million plan.
 increase wholesale revenue sales volume municipal co.
 base rate decreases june 2002 january 2003.
 2003 rate decrease $ 22. million minimal net income reduction nuclear depreciation decommissioning expenses.
 gain $ 15. million louisiana 1988 nelson units 2.
gulf states lpsc amortization recoverable fuel deferred gain.
 revenue provisions.
 $ 440. 2 million fuel recovery higher fuel rates louisiana texas.
 expenses $. 1 million market prices gas.
 maintenance expenses decreased 2022 severance program accruals $ 22. 5 million decrease $ 4. 3 million nuclear material labor costs reduced staff.


adoption sfas.
 123 company recorded compensation expense restricted stock awards vesting.
 employee forfeited award reversed expensed amounts forfeiture.
.
 compensation expense estimated awards.
 forfeitures recorded.
 2005 recorded pre-tax credit $ 2. 8 million accounting change compensation expense reduced.
 restricted stock awards outstanding 1 2005 anticipated forfeited.
 summary non-vested restricted stock activity.
 non-vested december 31 2006 $.
 issued.
.
 canceled.
 december 31 2007.
 $ 15. million unrecognized compensation cost non-vested awards.
 recognized. 6 years.
 total fair value restricted shares stock units vested $ 11. million $ 7. 5 million $ 4.million years 2007 2006 2005.
 shareholders approved 2002 reserved 5000000 shares common stock sale 85% fair market value one-year six-month periods.
.
 2002 purchase plan compensatory.
 august 2005 changed discount 5% discontinued look-back provision.
 not compensatory august 1 2005.
 year december 31 2005 recorded $ 0. 4 million compensation expense.
 december 31 2007 757123 shares available 2002 plan.
 salary deferral program employees service requirements.
 matches contributions additional contributions discretion.
 total contribution expense $ 5. 7 million. 2 million years 2007 2006 2005.


generated revenues $ 3. 0 billion oibda $ 848 million 2016 47% 35% 35 % revenues oibda.
 international networks segment national pan-regional networks brands distribution platforms.
 generates every pay-tv market centers london warsaw milan singapore miami.
 brands discovery channel animal planet tlc id science channel turbo. eurosport real time dmax discovery kids.
 2016 operated 400 feeds 40 languages customized.
 networks middle east germany norway sweden expansion.
 fta networks generate revenue.
 penetration growth rates vary.
 pay-tv.
 distribution platform 37 networks 13 networks 220 countries territories.
 distribution platforms local markets commercial agreements.
global networks operate networks internationally brands eurosport leading sports entertainment provider brands  2 viewers europe asia digital.
 viewing subscribers december 31 2016 eurosport 133 million 2 65 million eurosportnews 9 million.
 telecasts sporting events local pan-regional winter sports tennis tour de france home grand slam tennis.
 local sports rights bundesliga motogp.
 invested exclusive localized rights.
 acquired exclusive broadcast rights olympic games 2018 2024. 3 billion $ 1. 5 billion.
 exclude france russia.
 eurosport pay-tv digital platforms.
 november 2 2016 long-term agreement joint venture partnership bamtech bamtech europe digital technology services.
 dmax reached 103 million viewers.
 men 2019s factual entertainment channel asia europe.
 discovery kids 121 million viewers.
2022 discovery kids leading children's network latin america asia.
 international networks segment owns operates regional television networks subscribers viewers pay fta broadcast as december 31  2016 service international subscribers/viewers ( millions ).
 nordic broadcast networks
 frisbee
 tv
 discovery hd world
 discovery history
 discovery world
 discovery espanol.
 familia.
 subscribers corresponds nordic broadcast networks sweden norway finland denmark retransmission agreements pay-tv providers.
 include kanal 5 9 11.
.
 source revenue international networks fees operators linear networks.
 cable dth satellite service providers.
 international television markets vary development.
.advanced digital television markets others analog varying investment channel digital technologies.
 long-term distribution relationships renew contracts annually.
 distribution revenue international networks subscribers rates market demand content.
 revenue advertising networks distribution platforms.
.
 advertising revenue factors development pay television markets subscribers viewership demographics popularity programming sell commercial time multiple platforms.
 advertising sales business in-house teams external sales.
 revenue growth subscriber growth localization strategy shift advertising spending channels


research personnel lab facilities expanded portfolio patents license cooperative development program.
 acquired 20 percent interest grt.
 gtftm technology protected intellectual property protection program.
.
 granted 17 patents 22 pending.
 over 300 patents issued 100 countries.
 technology processing transportation costs natural gas creating gas hydrates.
 regasified delivery.
 pilot program proprietary natural gas hydrates manufacturing system.
 expansion lng production facility.
 approvals natural gas volumes regasification capacity.
.
 refining marketing transportation midwest upper great plains gulf coast southeast.
 fifth largest crude oil refiner.
 largest midwest.
 seven-plant refining network integrated terminal transportation system wholesale-brand retail.
wholly-owned subsidiary speedway superamerica llc third largest retail gasoline convenience stores.
 largest midwest.
 seven refineries refining capacity 1. 188 million barrels per day crude oil december 31 2009.
 refineries processed 957 mbpd crude oil 196 mbpd blend stocks.
 daily crude oil refining capacity 31.
.
 catlettsburg.
 refineries include atmospheric vacuum distillation catalytic cracking reforming desulfurization recovery units.
 oils produce refined products heavy fuel oil asphalt.
 manufacture aromatics cumene propane sulfur maleic anhydride.
 garyville refinery mississippi river louisiana.
 processes heavy sour crude oil


2013 long-term debt millions.
 rates 1. 85%. 85 % to 3. 80%. 80 % 2016 to 2045 $ 8150 $ 1400
 4. 07%. to 5. 72%. 2019 to 2046
 6. 15%. to 9. 13%. 13 % 2016 to 2036
 long-term debt 16296 7041
 unamortized discounts deferred financing costs -899
 $ 15261 $ 6142
 2015 $ 2. 5 billion credit facility terminated $ 1. 5 billion august 2019.
 expires october 9 2020 corporate purposes.
 backup commercial paper.
 increase borrowing capacity $ 500 million.
 no borrowings outstanding acquisition sikorsky 364-day revolving credit facility $ 7. billion funding purposes acquisition.
sikorsky acquisition borrowed $ 6. 0 billion 364-day facility.
 november 23 2015 repaid borrowings proceeds new debt terminated commitments.
 borrowings interest eurodollar base rate agreements.
 compliance representations warranties covenants assets exceed maximum leverage ratio.
 december 31 2015 compliance covenants agreement debt agreements.
 23 issued $ 7. 0 billion registered public offering.
 received net proceeds $ 6. 9 billion deducting discounts debt issuance costs amortized interest expense.
 notes 2022 $ 750 million 2018 fixed interest rate 1. 85%. $ 1. 25 billion 2020 interest. 50%. $ 500 million 2023 interest 3. 10%. $ 2. billion 2026 interest. 55%. $ 500 million 2036 interest rate 4. 50%. $ 2.billion 2046 fixed interest rate 4. 70%.
 redeem november 2015 notes unpaid interest principal make-whole premium accrued unpaid interest redemption.
 interest payable 2018 2020 may november 2023 2026 january july 2036 2046 may.
 november 2015 notes right payment unsecured unsubordinated indebtedness.
 proceeds repay $ 6. billion borrowings 364-day facility corporate purposes.


revenue utility analysis change 2013 to 2012.
 millions.
 2012 net revenue $ 4969
 retail electric price 236
 louisiana act 55 financing savings obligation 165
 grand gulf recovery 75
 volume/weather 40
 fuel recovery 35
 deferral 12
 decommissioning trusts
 2013 net revenue $ 5524
 retail electric price variance due formula rate plan increase entergy louisiana january 2013 waterford 3 steam generator replacement project december 2012.
 net income return equity remainder offset operation maintenance taxes recovery hinds plant costs power management rider entergy mississippi billing cycle 2013.
 offset increase capacity acquisition rider entergy arkansas 2012 hot spring plant acquisition.
 offset 2022 increases energy efficiency rider july 2013.
efficiency revenues offset operation effect net income rate increase entergy texas july 2012 order 2011 rate increase entergy mississippi 2013.
 note 2 financial statements.
 louisiana act 55 financing savings regulatory charge second quarter 2012 entergy savings settlement tax hurricane katrina 55.
 note 3 financial statements tax settlement.
 entergy


increase property operating expenses large market store real estate taxes $ 3. million personnel expenses $ 1. 9 million water $ 1. million cable. million waste removal $. 2 million.
 increase secondary market store 1. 5 million real estate taxes 1. million personnel expenses. 2.
 decrease expenses non-same store personnel expenses $ 2. 4 million utility expenses $ 1. 7 million.
 table shows depreciation amortization expense segment 2015 2014.
 large market same store $ 168872 $ 174957.
 secondary market same store 85008.
 portfolio 253880 -7135.
 non-same store 40640 40797.
 $ 294520 301812 -7292.
 decrease depreciation amortization expense due $ 19.4 million amortization leases resident relationships merger 2014 2015.
 offset depreciation expense $ 11. million real estate assets.
 property management expenses $ 31. million decrease $ 1. million from.
 state franchise taxes $ 2. 1 million offset insurance $ 0. 6 million payroll $. 3 million incentive expense. million.
 general administrative expenses $ 25. 7 million increase $ 4. million 2014.
 increase legal fees $ 2. 7 million stock option expenses $ 1. 6 million.
 merger integration expenses no 2015 facilities costs acquisition integration.
 expenses $ 3. 2 million $ 8. 4 million.
 interest $ 122. 3 million decrease $ 1. 6 million.
 amortization deferred financing cost $ 0. 9 million.
 debt balance decreased $ 3.. 4 billion decrease 85. million.
 average interest rate. 7%. maturity. 8 years.
 mid-america apartment 10-k 20 2016 304352-1.


compares common stock s&p 500 healthcare equipment index.
 return investment $ 100 31 2009 reinvestment dividends.
 5 year return $ 200 lifesciences.
 lifesciences $ 186. $ 162. 207. 151. 293.
 s&p 500 115. 117. 136. 180. 205.
&p 500 healthcare equipment 96. 102. 120 153 194.


31 94 liquidity payments long-term debt rental payments leases purchase obligations commitments december 31 2007 summarized table.
 payments less 1 year 1-3 years 3-5 5
 long-term debt $ 2302. $ 126. $ 547. 1174. 454.
 capital lease obligations 4.
 interest payments long-term debt 698. 142. 246. 156
 operating leases 218. 49.
 purchase obligations 6092. 2397. 3118. 576.
 stock repurchase agreements 131.
 70.
 payments contractual obligations $ 9517. 2918. 3985. 1947. 667.
 9517. 2918 3985. 667. amounts local currencies translated year-end exchange rates.
variable rate facilities based on interest rates hedging instruments.
 company purchase obligations include aluminum steel plastic resin materials.
 natural gas electricity aerospace technologies contracts less significant items.
 management best estimates.
 early termination payments vary.
 contributions defined benefit pension plans $ 49 million 2008.
.
 benefit payments $ 66 million $ 70 million $ 74 million $ 77 million $ 82 million 2008 2012 total $ 473 million 2013 2017.
 payments unfunded german plans $ 26 million 2008 2012 total $ 136 million 2013 2017.
 a38 million guarantee.
 credit rating below contribute additional million provide letter credit lien on assets.
 guarantee approval trustees.
 share repurchase program 2007 $ 211. million $. 2006 $ 358. million 2005.
.settlement january 5 2007 contract 2006 repurchase 1200000 shares.
 2007 repurchases 675000 shares.
 settled january 7 2008 $ 31 million.
 december 12 2007 accelerated repurchase $ 100 million shares cash borrowings.
 $ 100 million january 7 2008 received 2 million shares 90 percent shares price.
 shares repurchased determined settlement 2008 adjustment average price.
 settle cash shares.
 repurchase $ 300 million shares 2008.
 dividends 40 cents per share 2007 2005.
 $ 40. 6 million 41 million 2006 42. 5 million 2005.


ordinary shares of aon plc eligible for deposit clearing dtc system.
 merger arrangements with dtc to indemnify for stamp duty sdrt assessed depository.
 obtained ruling from hmrc stamp duty sdrt consequences reorganization sdrt paid.
 dtc cease depository clearing for.
 if dtc not eligible for for listing.
 securities exchange inclusion in s&p 500.
 disruption trading price.
.
.
.
.
 offices in locations.
 leased premises.
 corporate headquarters at 8 devonshire square london 225000 square feet lease 2018.
 own building at pallbergweg 2-4 amsterdam netherlands ( 150000 square feet ).
 additional leased properties occupied square footage expiration.
.
property occupiedsquare footage leaseexpiration dates
 overlook point locations lincolnshire illinois 1224000
 2601 research forest woodlands texas 414000
 city park gurgaon india 413000
. randolph chicago illinois 396000
 2300 discovery orlando florida 364000
 water new york 319000
 7201 hewitt associates charlotte north carolina 218000
 locations lincolnshire gurgaon acquired hewitt 2010 dedicated hr solutions segment.
.
 2011 lease 190000 square feet london united kingdom.
 contingent construction.
 2015 devonshire.
 2013 lease 479000 square feet gurgaon india.
.
 2014 2015 expiration leases.
 difficulty negotiating renewals space unavailable.
believe facilities adequate maintained.
 unused space sublet third parties depending demands office space.
 see note 9 "lease commitments financial statements ii 8 lease commitments december 31 2013.
.
.
 incorporate note 16 "commitments contingencies 8.


financial statements 2014 historical trends economic market conditions valuation.
 results differ assumptions.
 impact future pension retiree medical expenses.
 annual pension expense sum liability interest expected return plan assets other gains losses.
 expected return assets calculated assumed long-term rate return fair value.
 returns differ.
 differences combined with gains losses revaluation plan liabilities.
 revalued annually assumptions.
 combined gain loss expensed evenly remaining years.
 accounts.
 income.
.
.
 non-owner changes equity not net income loss.
 comprehensive income adjustments company minimum pension liability adjustments.
 balance as october 1 2004 $ -786 ( 786 )
 -351 (
 balance september 30 2005 -1137 ( 1137 )
september 29 2006 $ -599 599
 accounting pronouncements november 2004 fasb issued.
 151 costs 2014 amendment apb.
.
.
 amendments.
 abnormal facility expense freight handling costs wasted materials current-period charges allocation production overheads inventory capacity.
 effective inventory costs years june 15 2005.
 adopted.
 october 1 2005 impact financial statements 2006.
 2004 fasb issued sfas.
 153 nonmonetary assets 2014 amend.
.
.
 guidance.
 nonmonetary transactions.
 exchanges nonmonetary assets fair value.
.
 exceptions.
.
.
 exception nonmonetary exchanges exception nonmonetary.
.
 transactions after june 15 2005.
 adopted.
 october 1 2005 financial statements 2006.
 2005 fasb issued.
error corrections apb opinion.
 statement.
 201d.
.
 replaces apb opinion.
 changes statement.
 financial statements amendment apb opinion.
 201d


divestiture information systems global solutions business august 16 2016 divestiture is&gs business merged subsidiary leidos reverse morris trust transaction.
 multi- step contributed is&gs business abacus innovations corporation wholly owned subsidiary lockheed martin common stock distributed lockheed martin stockholders exchange offer.
 exchange lockheed martin common stock abacus common stock.
 abacus exchanged 9369694 shares lockheed martin common stock.
 retired reducing shares common stock 3%.
 abacus merged subsidiary leidos wholly-owned subsidiary leidos.
 each share abacus common stock converted leidos common stock.
 shares leidos common stock hold.
 exchange offer merger tax-free transactions cash paid fractional shares.
 abacus borrowed approximately $ 1.billion loan-time cash payment $ 1. 80 billion lockheed martin borrowing fees expenses.
 debt dividends repurchase stock quarters 2016.
 obligations guaranteed leidos.
 net gain $ 1. 2 billion.
 $ 2. 5 billion lockheed martin common stock $ 1. 8 billion payment net book value is&gs business $ 3. 0 billion august 16 2016 adjustments $ 100 million.
 final gain subject post-closing adjustments tax 2017.
 results is&gs discontinued operations.
 divestiture strategic shift.
 cash flows not reclassified retained.
 assets liabilities december 31 2015.
 receivables 807
 inventories 143
 current assets
 property equipment
 goodwill 2881
 intangible assets 125
 noncurrent
 assets disposal group
-229
 advances costs
 salaries benefits payroll taxes -209
 liabilities
 deferred taxes
 noncurrent liabilities -60
 liabilities disposal -1153


american tower corporation subsidiaries financial statements 2014 restructuring basis assets spin-off radio systems.
 december 31 2006 federal state loss carryforwards future taxable income $ 2. 1 billion $ 2. 5 billion.
 loss carryforwards expire.
 december
 2007 2011
 2012 2016
 2017 2021
 2022 2026
 2093683 2548612
.
 valuation allowance deferred tax assets. december 31 2006 valuation allowance $ 308. 2 million $ 153. 6 million spectrasite net operating loss capital loss carryforwards.
 balance state deferred tax assets.
 allowance remaining deferred tax assets federal net operating loss carryforwards twenty-year tax period.
 valuation allowances deferred tax assets realizable.
.3 million spectrasite valuation allowances december 31 2006 goodwill deferred tax assets utilized.
 company recover deferred tax asset federal income tax refund claims net operating losses.
 filed claims $ 380. million operating losses anticipated $ 90. million.
 revised estimate december 31 2005 anticipates refund $ 65. million plus interest.
 expects settlement first half 2007 no assurances timing refund.
 uncertainty recognized amounts interest.
 recoverability net deferred tax asset assessed stable state projections.
 decrease depreciation later years years.
 recoverability not dependent improvements operations asset sales non-routine transactions.
 believes net deferred tax asset realized.
 $ 1. 4 billion taxable income january 1 2007 to december 31 2026.
company unable generate taxable income carry losses


pnc financial services group.
 2013 form 10-k pnc indemnification obligations subject to pending legal proceedings monetary damages relief.
 anticipate liability financial position.
 determine claims results future reporting loss income reported.
 commitments outstanding not included consolidated balance sheet.
 table outstanding commitments extend credit december 31 2017 2016.
 commitments to extend credit commitments millions.
 commitments extend credit
 commercial lending $ 112125 $ 108256
 home equity lines of credit 17852 17438
 credit card 24911 22095
 other 4753 4192
 commitments to extend credit 159641 151981
 standby letters ofcredit 8651 8324
 reinsurance agreements 1654 1835
 bond purchase agreements 843 790
 other commitments 1732 967
commitments to extendcredit $ 172521 $ 163897
 commitments lend funds provide liquidity contractual conditions.
 fixed expiration dates fee contain termination clauses credit quality.
 issue share risk support obligations to third parties insurance requirements transactions capital markets.
 91% 94% standby letters rated as pass december 31  2017 2016 remainder below pass.
 pass risk loss low below pass higher risk.
 customer fails obligation remarketing program make payment.
 letters 2017 terms less than one year to seven years.
 assets of $ 1. 3 billion secured standby letters of credit.
 remaining secured by collateral guarantees obligations.
 liability for obligations was $. 2 billion at december 31 , 2017 included in consolidated balance sheet.


tower corporation subsidiaries financial statements 2014 31 long-term debt capital leases five years estimated.
 2008 $ 1817
 2009 1241
 2010 78828
 2011 13714
 2012 1894998
 2292895
 cash obligations $ 4283493
 discount premium 3. 125%.
 december 31 2007 $ 4285284
.
 acquisitions 2006 2005 293 towers assets structural analysis firm $ 44. million 84 towers 6 antenna systems $ 14. million 30 towers $ 6. million.
 acquisitions mexico brazil.
 2005 merger spectrasite.
 acquired 7800 towers 100 antenna systems.
.
 wholly subsidiary.
. 575 shares common stock.
 issued. million shares reserved. 6. 8 million spectrasite.
options warrants assumed merger.
 final allocation $ 3. 1 billion purchase price annual report form 10-k 31 2006.
 acquisitions 2007 2006 2005 accounted purchase method.
 combinations.
.
 purchase prices allocated assets acquired liabilities assumed estimated fair values acquisition.
 acquired tower assets business assets.
 structure transaction purchase price financial statements.
 assets. allocates purchase price assets liabilities estimated fair values.
 excess purchase price over value recorded as goodwill.
 asset purchase allocates purchase price to property equipment intangible assets.
 records remaining purchase price intangible assets.


market risk management equity investment risk losses private public equity markets.
 pnc invests private equity.
 extending credit deposits trading instruments investments management buyouts recapitalizations growth financings industries.
 investments affiliated non affiliated funds private equity debt hedge funds.
 value affected market factors.
 primary risk measurement economic capital.
.
 potential value depreciation solvency institution rated.
 illiquid investments determine fair values.
 note 9 fair value financial statements.
 pnc business units manage equity investment activities.
 decisions policy limits guidelines.
 summary equity investments 55 equity investments millions.
 5940
 tax credit investments
 private equity
 pnc 36 million common stock shares blackrock equity december 31 2013.
primary risk measurement economic capital.
 business segments blackrock.
 tax credit investments.
 totaled $ 2. 7 billion 2013 $ 3. 0 billion 2012.
 unfunded commitments $ 802 million $ 685 million 2012.
 liabilities consolidated balance sheet.
 3 loan sale variable interest entities 8 tax credit investments.
 accounting estimates judgments adopt guidance first quarter 2014.
 illiquid investments industry.
 totaled $ 1. 7 billion 2013 $ 1. 8 billion 2012.
 $ 1. 1 billion directly $. 6 billion indirectly equity funds.
 private equity funds.
 noncontrolling interests totaled $ 236 million 2013.
 funds not redeemable receive distributions liquidation.
item 1 2013 risk factors impacts volcker rule private funds unfunded commitments private equity $ 164 million 2013 182 million 2012.
 sold 4 million visa class b shares swap agreements.
 note 9 value 17 financial derivatives financial statements 8.
 investment visa b shares 10 million shares $ 158 million.
 closing price $ 222. 68 $ 971 million financial services group.
 2013 form


.
.
 july 2015 acquired equity interests alabama technology payment processing financial services $ 10000 cash.
 funded cash.
 expanded presence commercial lending.
 purchase price allocation assessment fair value acquired assets liabilities.
.
 current assets $ 1922
 long-term assets 253
 intangible assets 5005
 liabilities assumed
 net assets 3901
 goodwill 6099
 assets acquired $ 10000
 growth potential synergies economies scale operations.
 allocated bank systems services.
 not deductible income tax.
 intangible assets customer relationships $ 3402 $ 659 computer software other intangible assets $ 944.
 average amortization period 15 5 20 years.
 cash $ 1725.
 fair value receivable $ 178.
receivables $ 178 uncollectible.
 2016 company incurred $ 55 costs acquisition bayside business solutions.
 legal valuation.
 administrative expenses.
 2019 operations twelve months 2017 revenue $ 6536 after-tax net income $ 1307.
 2016 contributed $ 4273 revenue net income $ 303.
 statements include revenues expenses acquisition.
 impact immaterial financial statements.


interest expense $ 17 million less 2004 reduction debt $ 316 million.
 charges declined $ 30 million 2004 lower environmental remediation legal workers compensation expenses absence 2003 charges.
 earnings $ 28 million higher 2004 higher earnings equity affiliates.
 effective tax rate 2004. 29%. 76%. 2003.
 reduction subsidy medicare act tax non-.
 earnings resolution.
 federal income tax years.
 net income 2004 $ 683 million increase $ 189 million 2003 earnings per share 2013 increased $. $ 3. 95 per share.
 business segments net sales income.
 income revised change allocation pension postretirement benefit costs 2004.
 coatings sales increased $ 440 million % 2004.
increased 6% 4% currency translation.
 declined 1% 1 % lower selling prices automotive.
 income increased $ 58 million.
 higher sales volume currency translation manufacturing efficiencies 20 million.
 inflationary cost increases 82 million lower selling prices.
 glass sales increased $ 54 million 3%.
 6% 6 performance glazings automotive.
 increased 2% 2 % currency translation.
 declined 5% 5 % lower selling prices.
 income increased $ 98 million.
 improved manufacturing efficiencies 110 million higher sales volume equity earnings gains sale/leaseback precious metals 19 million.
 lower selling prices.
 fiber glass volumes 15% pricing declined.
 equity earnings joint venture.
 reductions.
 chemicals sales increased $ 263 million 15 %.
 10% improved volumes 4% 4 higher selling prices.
sales increased 1% foreign currency translation european operations.
 income increased $ 63 million 2004.
 higher prices higher sales volume improved manufacturing efficiencies $ 25 million lower environmental expenses.
 decreasing income inflationary cost increases $ 40 million higher energy costs $ 79 million.
 pension postretirement benefit costs 2004 $ 45 million lower 2003.
 reflects market growth pension plan assets $ 140 million cash pension subsidy medicare act 12.
 environmental matters involved lawsuits claims monetary damages.
 3 proceedings 13 proposed settlement asbestos claims.
discussed item 3 note 13 future litigation unpredictable management believes lawsuits ppg including asbestos settlement ppg financial position liquidity outcome material results operations.
 company named defendant antitrust lawsuits.
 suits allege ppg acted fix prices allocate markets flat glass automotive refinish industries.
 2005 ppg annual report form 10-k


citigroup capital resources estimates common equity tier 1 capital total capital ratio requirements.
 rules 3% ( 3 % ) surcharge 10% 11. 5%. 13. 5%.
.
 comply 4% ( 4 % 1 leverage ratio 5% ( 5 % supplementary leverage ratio.
 tables capital tiers risk-weighted assets risk-based capital ratios quarterly adjusted average total assets leverage exposure ratios implementation.
 december 31 2015 2014.
 capital components ratios basel iii millions.
 common equity tier 1 capital $ 146865 136597
 capital 164036 148066
 total capital 186097 198655 165454 178413
 risk-weighted assets 1216277 1162884 1292605 1228488
 common equity tier 1 capital ratio.12. 07 %. 63%. 63 %. 57%. 57 % 11. 12%. 12 %
 1 capital ratio 13. 49 14. 11. 45.
 15. 30 17. 80.
 equity 1 capital. 07%. 07 %. 63%. 63 %. 57%. 57 %. 12%. 12 % 13. 49. 52 millions dollars 2015 2014 quarterly adjusted average assets $ 1724710 $ 1835637 leverage 2317849 2492636 1 leverage ratio 9. 51%. 51 % 8. 07%. 07 % leverage ratio. 94 2014-01 investments.
 credit reserves losses tier 2 capital. 6%. 6 % risk-weighted assets standardized losses. 25%. 25 % excess deducted.
2015 2014 citi 2019s equity tier ratios basel iii approaches framework.
 2019s capital ratios non-gaap financial measures.
 information progress capital standards.
 1 leverage ratio.
 supplementary leverage ratio denominator.


abiomed.
 subsidiaries financial statements 2014 applies disclosure provisions.
 45 guarantor requirements guarantees indebtedness fasb statements.
 5 57 107 rescission.
 34.
 agreements guarantee indemnification clauses.
 disclosure provisions expand.
 contingencies guarantors disclose guarantees.
 company guarantor.
 product warranties accrues estimated warranty costs sales.
 products regulation quality standards.
 results cost exceeds estimated warranty.
 patent indemnifications indemnifies patent infringement.
 limits.
 incurred costs defend lawsuits patent infringement claims.
.
 intellectual property indemnifications disclosure.
 leases facilities facility danvers massachusetts terms 2010.
 lease extended five years monthly rent charges rental values.
company 2019s lease aachen expires august 2008 option four years.
 december 2005 closed office facility netherlands $ 58000 remaining lease term.
 rent expense leases $ 821000 $ 824000 $ 1262000 fiscal years 2004 2005 2006.
 future minimum lease payments non-cancelable leases.
 2007 1703
 2008 1371
 2009 1035
 2010 710
 future minimum lease payments $ 4819
 company involved legal administrative proceedings claims.
 outcome financial position cash flow results.
 may 15 2006 richard.
 filed demand arbitration boston american arbitration association


income taxes investment income excise taxes.
 group bermuda subsidiaries subject.
 income tax effect financial condition results operations cash flows.
.
 bermuda re uk branch business subject taxation.
 bermuda bermuda operation uk taxation.
 bermuda operations uk income tax financial condition results operations cash flow.
 ireland.
 holdings re business subject taxation.
.
 annual reports 10-k quarterly 10-q current 8- k proxy statements amendments internet website. everestregroup. securities exchange commission.
.
 risk factors investment securities.
 business financial condition results operations trading price common shares decline.
 business fluctuations financial markets investment losses.
 disruptions public debt equity markets losses investment portfolio.
 financial markets improved 2008 could deteriorate.
declines financial markets losses investments operations equity business financial strength debt ratings.
 catastrophic events.
 exposed to unpredictable catastrophic events weather natural catastrophes terrorism.
 reduction operating results dividends meet interest principal obligations.
 catastrophe loss property exposures before reinsurance $ 10. million reinsurance.
 threshold $ 5. million.
 past five years pre-tax catastrophe losses contract reinsurance before cessions corporate reinsurance.
.
 2012 410.
 2011.
.
.


remitted as dividends after deferred taxes.
 90% undistributed earnings tax 24% higher disproportionate taxable income low tax rates.
 reconciliation unrecognized tax benefits.
 tax benefits 2013 2012 2011
 balance beginning $ 110. $ 126. 4 $ 197.
 additions 12. 7 44. 5 16.
 prior 9. 2. 5.
 reductions prior years.
.
.
 currency.
 end year $ 124. 3 $ 110. 8 $ 126.
 2013 2012 $ 124. 3 $ 110. 8 unrecognized tax benefits excluding interest penalties $ 63. 1 $ 56. 9 effective tax rate.
 income tax expense $ 2. 4 2013 26. 2012 2. 4 2011.
accrued balance interest penalties $ 8. 1 $ 7. 2 2013 2012.
 challenged tax deductions subsidiaries.
 2011 settlement. 3 million $.
 increased income tax expense 2012 $ 43. 8. per share. 3%. effective tax rate.
 reduction unrecognized tax benefits $ 6. 4 $ 11. 0.
 january 2012 supreme court spanish subsidiary 1991 1992.
 second quarter reduction income tax expense $ 58. 3 $. 27 per share 4. 4%. reduction effective tax rate 2012.
 reduction unrecognized tax benefits $ 38. 3 years.
 third quarter unrecognized benefits increased $ 33. 3.
 tax rate.
.
 third quarter 2011.
 revenue audit 2007 2008 unrecognized tax benefits $ 36. 0 impact earnings $ 23..
 tax benefit $ 8. per share discontinued operations 2011 divested.
 healthcare business.
 examination tax jurisdictions next twelve months.
 change unrecognized tax benefits twelve.
 quantification estimated range.


oil gas activities future cash flows oil gas reserves 2007 2006 2005 sales transfers oil gas production transportation administrative costs $ 4887 5312 3754 prices production costs 12845 1342 6648.
 2007 2006 2005
 sales transfers oil gas costs -4887 -5312 -3754 3754
 12845 -1342 1342 6648
 extensions discoveries recovery 1816 1290 700
 development costs 1654 1251 1030
 development costs -1727 -527 -552
 estimates 1319
 sales minerals 23
 accretion discount 1726 1882 1124
 income taxes -6751 -660 -6694
 -12 307
 change 4977
 8518 10601
 end year 13495 8518 10601
discontinued 2013 -216 216 162


stock performance graph not section 18 exchange act incorporated into filing holdings.
 under exchange securities act except.
 comparison may 9 2013 through december 31 2016 return common stock standard poor 500 stock index select peer group.
 cerner charles river laboratories. dun & bradstreet equifax. icon markit. laboratory nielsen. parexel. thomson reuters verisk analytics.
 companies publicly traded technology research companies similar business model quintilesims.
 used by compensation committee benchmarking.
 graph assumes $ 100 invested in quintilesims s&p 500 peer group may 9 2013 reinvestments dividends.
 comparative purposes.
 reflect management opinion not forecast future performance common stock.
.
5/9/2013 12/31/2013/31/2015/31/2016
 $ 100 110 140 163 181
 group $ 100 116 143 151
 s&p 500 $ 100 114 127 126 138
.
 income 2016 2015 2014 balance sheet december 31


company 2019s contractual obligations december 31 2015.
 millions 2016 2017 2018 2019 2020 2020
 long-term debt $ 9878 $ 1125 $ 744 993 1203 5191
 interest 2244 174 157 153 149 146
 operating leases 943  234 191 134
 capital leases 59
 unconditional purchase obligations 1631 1228 160 102 54 56
 cash obligations $ 14755 $ 2772 $ 1258 $ 1386 914 1480 6945
 long-term debt payments 2016 2017 notes $ 126 million $ 96 million.
 interest projections based interest rates december 31 2015.
 unconditional purchase obligations agreement purchase goods enforceable binding.
unconditional purchase obligations take or pay contracts capital commitments service agreements utilities.
 estimates include one year less than one year.
 commitments relate to take or pay contracts 3m guarantees payment availability products services.
.
 contractual capital commitments small part expected capital spending 2016.
 amounts represent entire purchases.
 majority products services purchased as needed no unconditional commitment.
 reliable indicator future cash outflows.
 obligations current liability uncertain tax positions under asc 740 expected paid cash next 12 months.
 estimate timing long-term payments liability long-term net tax liability $ 208 million excluded.
.
 required minimum cash pension contribution obligation.
 plans 2016 contributions.
 discretionary amounts not included table.
enters contracts options swaps rate fluctuations cash financing.
 manages interest rate risks fixed floating debt.
 interest rate swaps.
 difference fixed floating interest.
 manages commodity price risks supply contracts price protection agreements contracts.


table information increases aap stores past five years beginning new 1 closed ending 1 include relocations renovations.
 store-based information systems efficiency service proprietary pos system electronic parts catalog system.
 information pos system pricing marketing merchandising strategies inventory.
 pos system integrated with epc parts selection ordering based year make model engine.
-based epc data management system time exchange data catalog deliver parts information.
 contains enhanced search engines navigation tools parts products.
 part available epc system ordered from.
 available parts accessories ordered electronically confirmation price availability delivery time.
 support store operations proprietary systems labor scheduling.
 store-level inventory management system provides real-time inventory tracking.
store-level system team check-hand inventory adjust stock levels process returns defective merchandise designate skus track transfers.
 stores use radio frequency hand-held devices accuracy inventory.
 standard operating procedure system web-based data management system access procedures on-line search.
 systems provide real-time information improved customer service productivity in-stock availability.
 merchandise handled teams locations roanoke minneapolis taipei.
 roanoke team parts minnesota team accessories oil chemicals.
 global sourcing team.
 fiscal 2011 purchased from 500 vendors no single vendor more 9% purchases.
 purchasing strategy agreements vendors payment terms volume.
 team developed vendor relationships category management process product offerings demand.
 global sourcing store sales gross margin inventory productivity.
2011 2010 2009 2008 2007
 beginning stores 3369 3264 3243 3153 2995
 new stores 1 ) 95 110  75  109  175
 closed -4 4 -5 ( 5 ) -54 54 ) -17 )
 ending stores 3460 3369 3264 3243 3153
 table increases stores past five years beginning new 1 ) closed ending 1 relocations renovations.
 store-based information systems proprietary pos system electronic parts.
 pricing marketing merchandising strategies replenish inventory.
 pos integrated epc parts selection ordering year make model engine.
 epc data management time data parts information.
 search engines-friendly navigation tools.
hard part accessory available epc system ordered from.
 available parts accessories ordered electronically from confirmation price availability delivery time.
 store operations with proprietary systems labor scheduling.
 store-level inventory management system real-time inventory tracking.
 check inventory adjust stock levels process returns defective merchandise designate track merchandise transfers.
 radio frequency hand-held devices accuracy inventory.
 standard operating procedure system web-based data management access procedures on-line search.
 provide real-time information improved customer service productivity in-stock availability.
 merchandise handled by merchandise teams roanoke minneapolis.
 roanoke parts minnesota accessories oil chemicals.
.
 fiscal 2011 purchased merchandise from 500 vendors no single vendor more than 9% purchases.
purchasing strategy agreements with vendors pricing payment volume.
 merchandising team developed strong vendor relationships category management process product demand.
 process global sourcing operation critical improving store sales gross margin inventory productivity.


inc.
 financial statements measurement date market price acquirer securities purchase business combination.
 components allocation.
 assets acquired july 13 2006 $ 800
 research development 10200
 technology how 39500
 customer relationship 15700
 trade name 3300
 order backlog 800
 deferred income taxes 4400
 goodwill 145900
 estimated purchase price $ 220600
 plan restructure r2 activities.
 liability $ eitf issue.
 95-3 termination employees abandonment lease space $ 46 paid september 30 2006.
 plan one year additional liabilities goodwill.
 final purchase price allocations one year financial position.
 intangible assets identified valued.
 customer relationships trademarks developed technology identifiable values.
 base market position partnership companies.
 trademarks product names.
 developed technology products.
estimated $ 10200 purchase research projects r2s digital cad products.
 add digital algorithm new platform technology breast density measurement.
 project 20% complete spend $ 3100.
 deferred income tax asset net operating loss offset assets adjustments not deductible.
 acquisition suros surgical systems.
 2006. 17.
 results operations included financial statements mammography business.
 surgical indianapolis develops manufactures sells invasive interventional breast biopsy technology site marking.


committed electro-mechanical systems.
 expenditures $ 48. 3 million $ 47. 3 million $ 45. 2 million years 2017 2016 2015.
 concentrate technology innovations new products improvements product cost quality safety sustainability.
 manage r&d team global group collaborative approach new technologies product platforms.
 regional local standards.
 global engineering center bangalore.
.
 construction projects second third quarters security product sales higher first fourth.
 interflex business higher sales fourth quarter project timing.
 revenue quarter 2017 2016 2015.
 2017 23% ( 23 % 26% 26 %
 2016 22% 22 26%
 2015 22% 22 % 25% 25 % 26% 26 27% 27 %
 10000 employees.
environmental regulation dedicated program hazardous materials manufacturing environmental concerns.
 engaged in site investigations remediation environmental cleanup past operations production facilities.
 evaluates remediation programs considers alternative methods.
 party to environmental lawsuits claims received notices violations.
 environmental protection agency state authorities.
 potentially responsible party for cleanup costs off-site waste disposal federal superfund state remediation sites.
 involvement minimal.
 bear entire cost remediation.
.
 additional lawsuits claims likely arise.
 incurred $ 3. 2 million $ 23. 3 million $ 4. million expenses 2017 2016 2015 for environmental remediation at sites owned leased.
 reserves for $ 28. 9 million $ 30. 6 million.
. remediation sites previously disposed.
evolving environmental laws compliance uncertain.


commodity prices risk company manages price risks through supply contracts price protection agreements forward contracts.
 3m used commodity price swaps cash flow hedges discontinued 2015.
 mark-to-market gain loss hedges included in income reclassified into cost sales earnings.
 value at risk analysis sensitivity currency rates interest rates commodity prices.
 monte carlo simulation technique impact after-tax earnings financial instruments debt derivatives exposures.
 95 percent confidence level 12-month.
 18 currencies interest rates three currencies commodity prices five commodities.
.
 hedge transactions.
 risk loss exchange rates higher 2015 floating rate debt rising interest rate.
 interest rate volatility increased.
 table summarizes adverse positive impacts to after-tax earnings.
.
exchange rates $ -254 ( 254 $ -164 164 273
 interest rates -13 -4 ( 4 )
 commodity prices -1 1
 adverse positive impacts information.
 currency effects pre-tax income 2015 $ 390 million 2014 $ 100 million decrease.
 translating profits.
 dollars fluctuations transfer goods transaction gains losses instruments impact swapping venezuelan bolivars.
 dollars.
 gains losses-tax income 2015 $ 180 million increase 2014 $ 10 million increase.
.
 one percent price change pre-tax $ 70 million year.
 ten percent price change $ 40 million.
 production electricity natural gas.


.
 new accounting standards january 1 2003 adopted financial accounting standards.
 asset retirement obligations.
.
 fair value asset retirement obligation estimate.
.
 previous standards units-of-production retirement costs revenues.
.
 143 requires depreciation asset retirement cost accretion over time.
 depreciation determined-production accretion production declines.
 retirement obligations relate abandonment oil gas facilities.
 refineries crude oil pipelines marketing assets.
 not recognized uncertainty settlement date.
 transition adjustment adopting.
 january 1 2003 cumulative effect change accounting principle.
 income.
 $ 4 million $.
 assets increased $ 120 million liabilities increased $ 116.
amounts recognized adoption based estimates assumptions future retirement costs recoverable oil gas inflation rates credit-adjusted risk-free interest rate.
 changes asset retirement obligations.
 obligations january 1 $ 339 $ 316
 liabilities 2003
 settled
 revisions estimates
 obligations december 31 $ 390 $ 339
.
 adopted january 1 2002.
 income accounting principles 2002 increased $ 1 million no impact earnings per share.
 includes $ 12 million acquisition oil.
 $ 25 million assets sold 2003.
 quarter financial accounting standards board.
.
.
.
.
 january 1 2003 adopted provisions effects early extinguishment debt consolidated statement income.
losses $ 53 million extinguishment debt 2002 extraordinary item 20 million reclassified income before taxes.
 adoption sfas.
 145 net income 2002.
 1 2003 adopted financial accounting standards.
 146 exit disposal activities.
.
.
 effective exit activities after december 31 2002.
 no impacts adoption.
.
 1 2003 adopted fair value provisions.
 stock-based compensation.
.
.
.
 amendment.
 transition intrinsic value fair value method.
 applied fair method grants january 1 2003.
 impact 2003 net income not.
 standards.
 133 derivative instruments hedging activities.
 effective derivative contracts after 2003 hedging relationships.
 adoption marathon financial position cash flows results operations.
.
201caccounting financial instruments liabilities equity may 30 2003.
 july 1 marathon financial position results.
 january 1 2003 interpretation.
 accounting disclosure guarantees indebtedness fair-value


performance graph compares return dividends common stock 2002 2007 returns nyse composite index ftse nareit index russell 1000 index.
 assumes $ 100 invested 2002 stock assumes reinvestment dividends.
 included nyse composite index.
 other indices representative industry.
 figures rounded nearest dollar.
 ventas $ 100  $ 206  270  331  $ 457  512
 nyse composite index $ 132 151 166 200 217
 all reit index 138 181 196 $ 262  $ 215
 healthcare reit index 154 186 189 273  279
 russell 1000 index $ 100 130 145 154 178 188
 nyse composite index reit index healthcare russell 1000 index


.
 2013 ventures pay dividends quarterly.
 2013 2012 2011 received cash dividends $ 92 million $ 83 million $ 78 million.
 2012 nantong venture acetate flake tow capacity 30000 tons.
 contributions $ 29 million 2009 2012 capacity expansion.
 expansions led earnings growth increased dividends.
 euromonitor 42% % share world's 2012 cigarette consumption.
 1. 9%. per year 2012 2017.
 ventures leader chinese domestic acetate production supply chinese cigarette producers.
 ownership interest cellulose derivatives ventures exceeds 20% account investments cost method accounting local government investment financial information.
.
 indirect ownership interests german infraserv groups industrial parks support.
 ownership investments december 31 2013.
.
.
.
 research innovation-oriented optimize production technologies products applications.
 spent three fiscal years research development sufficient strategic initiatives.
 patents trademarks copyrights product designs investment research manufacturing marketing.
 patents processes products uses.
 register trademarks brand names.
 property infringement design protection.
.
 new substances formulations unique applications production processes.
 regions intellectual property protection limited.
 maintain information security policies.
 data encryption disclosure confidential information employee awareness training.
 monitor competitive developments defend infringements intellectual property.
.
aoplus ateva avicor britecoat celanese celanex celcon celfx 2122 celvolit clarifoil compel duroset ecovae factor fortron gur hostaform impet mowilith nutrinova qorus 2122 sunett tcx thermx tufcor vandar vantage vectra vinamul vitaldose zenite products trademarks marks celanese.
.
 fortron ae trademark fortron industries.


printing papers sales 2006 decreased 3% 2004 sale.
 coated papers business.
 operating profits 43% higher 2005 33% 33 % higher 2004.
 earnings improved.
 pulp european papers offset declines brazilian papers.
 higher sales price united states brazil 284 improved manufacturing operations reduced lack-of-order downtime 41 million higher sales volumes 23 offset higher raw material energy costs 109 million higher freight costs 45 million fixed assets 128 million.
 higher earnings.
 offset lower european brazilian papers.
 555000 tons downtime 150000 tons lack-of-order.
 970000 tons downtime 2005 520000 tons lack-of-orders.
.
.
 net sales $ 3. 5 billion. billion 2005. 3 billion 2004.
volumes increased 2006 cut-size printing.
 price increases.
 lack-of-order downtime declined 450000 40000 tons closure uncoated freesheet machines.
 earnings doubled.
 costs freight energy.
 mill operations performance labor $ 30 million machine shutdowns.
.
 coated papers net sales $ 920 million 2006 $. billion 2005 $. billion 2004.
 profits 2006 26% 26 % lower.
 small operating loss 2004.
 third quarter 2006.
 sales volumes.
 coated freesheet groundwood paper higher increases.
 input costs energy wood raw materials increased.
 machine efficiency mill cost savings.
.
 pulp sales 2006 $ 509 mil $ 526 million $ 437 million 2005 2004.
 paper tissue pulp.
 higher.
earnings increased 30% 2005 2004 higher sales prices.
 costs wood energy higher.
 poor operations carolina.
 paper sales $ 496 higher 465 2005 $ 417 million 2004.
 higher volumes uncoated freesheet paper strengthening brazilian currency.
.
 sales price improved uncoated freesheet paper wood chips.
 profits $ 122 million down 134 million 2005 $ 166 million 2004 extended mill outage boiler environmental upgrades.
 papers sales $ 1. 5 bil lion 1. 2005. 2004.
 volumes higher eastern european mills.
 sales price increased.
 earnings rose 20% 2005 15% below 2004.


marathon oil corporation financial statements exchangeable shares acquisition date.
 additional shares voting preferred stock issued adjust votes changes exchange ratio.
 acquisition western board directors authorized voting preferred stock 6 million shares.
 issued 5 million shares to trustee holds shares holders exchangeable shares.
 each share stock one vote all matters marathon common stock.
 holder direct trustee vote stock equal marathon common stock exchange.
 votes trustee stock exceed outstanding exchangeable shares.
 common stock voting preferred stock vote together single class election directors marathon matters.
 voting preferred stock no other voting rights law.
 shares no dividend distribution holder.
 liquidation dissolution marathon holder receive assets marathon.
 not convertible into other capital stock marathon cash property rights not redeemed.
 25.
 facilities equipment land building space office production transportation equipment.
 long-term leases include renewal purchase options.
 future commitments capital lease sale-leasebacks operating obligations noncancelable terms capital obligations.
 2010 165
 2011
 2012
 2013
 2014
 313
 sublease rentals
 minimum lease payments $ 703 $ 909
 interest costs
 net lease payments $ 446
 capital lease obligations include $ 164 million construction december 31 2009.
 long-term debt $ 36 million.
 sales assumed leases equipment united states steel.
 default assumed obligations obligated payments leases.
 minimum lease payments $ 16 million equal amount sublease rentals.


annual report form 10-k bancorp part ii item 5.
 common equity stockholder matters issuer purchases equity securities corporate information back dividend limitations subsidiaries bancorp note 26 consolidated financial statements.
 december 31 2008 bancorp 60025 shareholders.
 issuer purchases equity securities plans programs maximum shares.
 october 2008 25394
 november 7526
 december 40
 32960
 bancorp repurchased 25394 7526 40 shares october november december employee compensation plans.
 purchases not included maximum shares board directors authorization.


contracts december 31 2006 mature 2007.
 contract amounts currencies.
.
 pay
. dollars -114000
 euros -4472
 singapore dollars 37180
 canadian dollars 81234
 malaysian ringgits
 movement 10%.
 dollar against foreign currencies net earnings $ 0. 1 million.
 item 8.
 financial statements supplementary data page f-1.
 9.
 changes disagreements accountants accounting financial disclosure.
 controls procedures evaluation disclosure controls management chief financial officer evaluated effectiveness disclosure controls procedures.
 concluded controls procedures functioning assurance information securities exchange act 1934 recorded processed summarized reported periods rules accumulated communicated management.
 controls system absolute assurance objectives assurance control issues instances fraud detected.
management 2019s report financial reporting page f-2 annual report form 10-k incorporated reference.
 change internal control financial reporting no change recent fiscal quarter reporting.
 item 9b.


list distribution locations square footage leased owned.
 footage
 franklin kentucky 833000
 pendleton indiana 764000
 macon georgia
 waco texas
 casa grande arizona 650000
 hagerstown maryland
 waverly nebraska
 texas
 lakewood washington
 longview texas
 hagerstown extension not separate center.
 mixing center high-volume bulk products.
 store support center 260000 square feet brentwood tennessee merchandising innovation center 32000 square feet nashville tennessee.
 8000 square feet headquarters arizona.
 northeast distribution center frankfort new york expansion waverly nebraska capacity.
.
item 103 regulation requires disclosure environmental proceedings monetary sanctions $ 100000 or.
 requests noncompliance environmental laws addressed case-by-case.
 company received subpoena district attorney yolo county hazardous waste management disposal practices.
 settlement discussions settlement.
 consent decree filed court june 23 2017.
 agreed compliance plan pay civil penalty fund environmental projects.
 civil penalty differ accrued.
 cost settlement compliance financial position cash flows.
 involved matters.
 estimated loss provided accrued liabilities.
 expects without adverse effect financial position cash.
.
 mine safety disclosures not applicable.


.
 north america contract revenues increased $ 46 million.
 caribbean $ 11 million operations merida lower capacity los mina.
 supply revenues increased $ 300 million $ 2. billion 2001. 2000.
 increased 3% $ 2. billion.
 increases north america caribbean.
 slight increases south america.
 europe/africa lower pool prices.
 operations acquisition ottana.
 increased $ 184 million expanded customer base new energy increased operations placerita.
 lower market prices.
 caribbean increased 123 million acquisition.
 revenues increased 300 million $ 2. billion. 2000
 increased 1% 1 % $ 1. 6 billion.
 caribbean slight north.
 increased $ 312 million edc.
 revenues increased $ 400 million $ 1. billion 2001. 2000.
businesses acquired 2001 2000 distribution revenues increased 20% to $ 1. 3 billion 2001.
 caribbean south america/africa.
 decreased asia.
 caribbean revenues increased $ 296 million operations caess acquired 2000 improved operations.
 south america increased $ 89 million settlement brazilian government declines argentine businesses.
 settlement sales price southeast.
/africa revenues increased $ 59 million acquisition sonel.
 asia decreased $ 33 million change investment cesco.
 changed equity 2001.
 decline offset increase businesses acquired ukraine.
 global company operates 29 countries.
 breakdown revenues 31 2001 2000.
 detailed breakdown note 16.
 north america 3. 6 billion. 4
 south america. 7 billion.
 caribbean. 9 billion.billion 73%
. 4 billion. 3 8%
 693 million 13%
 venezuela colombia.


expenditures acquisitions leased funded by original contributor no ownership.
 ashland net gain net loss.
 revenues increased $ 8. 718 billion 2003 $ 367 million.
 increases higher natural gas liquid hydrocarbon costs.
&t acquisition costs crude oil refined products manufacturing expenses.
 administrative expenses increased $ 107 million 2003 $ 125 million.
 employee benefits pension expense returns costs.
 health care cost. higher retiree health care costs.
 $ 24 million organizational business process changes.
 increase 2002 employee costs.
 inventory market valuation reserve cost inventories market value.
 2002 results credits income $ 71 million reversing reserve.
.
 financial costs decreased $ 82 million 2003 increase $ 96 million 2002.
decrease 2003 due capitalized interest construction projects interest rate swaps tax deficiencies investments.
 increase 2002 due higher debt acquisitions separation.
 foreign currency gains $ 13 million $ 8 million 2003 losses $ 5 million 2001.
 loss early extinguishment debt 2002 retirement $ million debt loss $ 53 million.
 financial accounting standards.
.
 amendment.
 technical corrections.
 loss early extinguishment debt million reclassified income before taxes.
.
 income.
 38 percent ownership increased $ 129 million 2003 decrease $ 531 million.
.
.
 income taxes increased $ 215 million 2003 $ 458 million due $ 720 million increase $ 1. 356 billion decrease income before taxes.
 effective tax rate 2003 36. 6%. 2002.
higher rate 2002 due united kingdom supplementary 10 percent tax north sea oil gas production effective april 17 2002.
 marathon recognized one-time noncash deferred tax adjustment $ 61 million rate increase.
 analysis effective tax rate.
 2003 2002 2001
 statutory tax rate 35.
 foreign operations.
 state local income taxes federal tax.
.
 36. 6%. 6 % 42. 1% 37
 deferred tax effect supplemental tax.
 increased effective tax rate 7. percent 2002.


financial instruments current assets liabilities approximate carrying amounts.
 non-current assets liabilities derivatives table.
 2005 carrying amount
 notes long-term assets $ 1374 $ 1412 1702 1770
 long-term debt liabilities $ 1636 1685 $ $ 875
 derivative instruments $ 6
 value notes receivables future cash flows-adjusted rates.
 long-term debt liabilities market prices future payments.
 interest rate swap agreement floating fixed rate.
 receivable floating.
 $ 92 million matures 2010.
 fair value hedge.
.
 change value recognized interest income.
 $ 1 million asset year-end 2005 $ 3 million liability year-end 2004.
 hedge effective no net gain loss 2005 2004 2003.
2005 two interest rate swap agreements.
 series f notes c e g notes.
 swaps cash flow hedges.
 133 terminated pricing.
 effective fluctuations.
.
 no net gain loss earnings 2005.
 net loss $ 2 million amortized interest expense.
 year-end six interest rate swap agreements risk residual timeshare sales.
 excess spread.
 swaps $ 380 million expire 2022.
 not accounted hedges.
.
 net asset $ 5 million year-end 2005 $ 3 million 2004.
 $ 2 million net gain 2005 2004 $ 3 million net gain 2003.
 swaps risk timeshare note sales.
 one swap cash flow hedge.
 effective interest rate fluctuations.
.
 second swap qualify hedge accounting.
non-qualifying swaps $ 3 million 2005 gain $ 2 million 2004 loss $ 4 million 2003.
 gains timeshare notes.
 foreign exchange contracts exposure.
 dollar equivalent $ 544 million 2005.
 qualify hedges.
.
 $ 2 million 2005 2004.
 $ 26 million gain 2005 $ 3 million $ 2 million net loss 2004 2003.
 gains losses offset by translating assets.
 dollars.
 2005 2004 2003 foreign exchange contracts volatility.
 dollar equivalent $ 27 million-end 2005.
 less one year cash flow hedges.
 values.
 fair value zero year-end 2005 2004.
 derivatives.
 hedge discontinued loss $ 1 million 2004.
 remaining hedges no net gain loss 2005 2004 2003.
year-end 2005 no deferred gains losses on contracts earnings.
 entered foreign exchange contracts manage currency exchange rate volatility.
 one contract hedge.
.
 $ 1 million net loss translation adjustment 2005.
 contracts hedges.
 gain $ 3 million 2005.
 contracts offset losses translation adjustments.
 contracts dollar equivalent $ 229 million fair value zero year-end 2005.
 lenders hotel owners long-term management contracts.
 guarantees maximum funding term five years or less.
 guarantees lenders fund cash flows inadequate debt repay loan.
 hotel owners fund hotels attain levels.


stock compensation company granted stock option restricted stock unit awards non-employee directors officers key employees 2007 equity compensation plan.
 shares common stock 15.
 december 31 2015. shares available grant.
 authorized-but-unissued reacquired purchased open market.
 recognizes compensation expense stock awards vesting period.
 compensation expense operation maintenance expense statements december 31.
 stock options $
 stock-based compensation
 income tax benefit
 compensation expense net tax $
 no significant compensation costs capitalized december 31 2015 2014 2013.
 cost services stock options stock awards measured grant date value.
 amortized expense three-year period.
 awards granted 2015 2014 2013 classified equity.
company receives tax deduction value award exercise distribution date.
 recognizes tax benefits deferred income tax assets compensation.
 tax deductions stockholders presented financing section statements cash.
 stratified grant populations turnover rates forfeitures.
 forfeitures adjusted.
 2015 2014 2013 granted non-qualified stock options employees 2007 plan.
 vest three-year service period january 1.
 no performance vesting conditions grant value amortized expense included operations maintenance expense statements.


duke realty corporation merchant building development sales program developed sold construction income.
 2004 generated tax gains $ 16. 5 million sale six properties $ 9. 6 million four properties 2003.
 margins sales property tenant.
 administrative expense increased $ 22. million 2003 to $ 26. 3 million 2004.
 increased staffi employee compensation costs group.
 increase marketing new projects.
 income from sales land ownership interests unconsolidated companies net adjustments 2004 2003.
 gain on land sales $ 10543 $ 7695
 sale ownership interests
 2003 sold 50% interest joint venture depreciable investment property.
 gain not included operating income.
 land sales undeveloped land.
 high undeveloped land.
 increase land sale current corporate tenant future expansion.
recorded $ 424000 $ 560000 impairment charges contracts land parcels years december 2004 2003.
 2004 one parcel owned.
 sold parcel quarter 2005.
 management financial condition results operations accounting policies preparation consolidated fi nancial statements accounting principles united states estimates assumptions assets liabilities contingent assets liabilities revenues expenses.
 estimates judgments assumptions evaluated information experience.
 note 2 financial accounting policies.
 management assessed accounting policies discussed audit committee independent auditors.
 accounting policies critical industry economic conditions accounting joint ventures analyze investments financial accounting standards board.
 consolidation variable interest entities.
 assess emerging issues task force.
 general partner controls limited partnership statement position accounting investments real estate ventures accounting research bulletin.
consolidated financial statements fasb.
 majority-owned subsidiaries.
 equity interests 10%-75% joint ventures rental properties land development.
 consolidate joint ventures majority ownership rights.
 control general partner manage operations debt sell assets without consent limited replace.
 use equity method accounting joint ventures control operating polices.
 investment included balance sheet assets liabilities not included.


part item 1.
 founded 1886 american water works company. delaware holding company.
 geographically diversified largest publicly-traded united states water wastewater utility company revenues population.
 operations subsidiaries.
 6400 employees 15 million people drinking water wastewater services 47 states one canadian province.
 regulated businesses market- based operations.
 information financial statements.
 ownership subsidiaries water wastewater utility services residential commercial industrial customers.
.
 economic regulation.
 federal state governments regulate environmental health safety water quality matters.
 regulated businesses revenues $ 2674. 3 million 2014 $ 2539. 2013 $ 2564. 4 million 2012 88. 8%. 90. 1%. 89. 9%. total operating revenues.
table regulated businesses revenues customers estimate population december 31 2014 revenues millions customers estimated population.
 operatingrevenues 652. 3 24. 5%. 5 % 648066 20. 2%. 2 % estimatedpopulationserved 2. 7 22. 7%. 7 %
 605. 22. 6%. 6 %. 7%. 7 %. 18. 5%. 5 %
 270. 10. 1%. 1 % 14. 4%. 4 %. 7%. 7 %
. 8%. 8 %. 7%. 7 %. 9%. 9 %
. 7. 8%. 8 %. 4%. 4 %. 0% 0 %
. 5%. 5 %. 1%. 1 %. 1% 1 %
. 7%. 7 %. 3%. 3 %.5. 0%. 0 %
 seven states 2327. 87. 0 % 2729231 84. 8%. 8 %. 9% 9 %
 346. 13. 0% 0 % 15. 2%. 2 %. 1% 1 %
 2674. 100. % 3219192. % %
 illinois-american water company subsidiary.


hologic inc.
 financial statements acquisition adjustments financial position results.
 no changes purchase price allocation form 10-k 30 2006.
 intangible assets identified valued.
 customer relationship trade name developed technology know how in-process research development identifiable values.
 customer relationship base dominant market position partnership large companies.
 trade name product.
 order backlog.
 developed technology know how marketable products.
 estimated $ 10200 purchase price in-process research development projects digital cad products.
 digital algorithm new platform breast density measurement.
 completed 2007.
 deferred income tax net operating loss acquired intangible assets fair value adjustments inventory not deductible.
 acquisition suros surgical systems.
 2006.
 merger april 17.
suros financial statements mammography care.
 indianapolis develops manufactures sells invasive breast biopsy technology.
 purchase price $ 248100 2300 shares hologic common stock $ 106500 cash $ 139000 $ 2600 acquisition fees expenses.
 fair value eitf issue.
 market price securities.
.
 assets july 27 2006 $ 11800
 research development 4900
 technology
 customer relationship 17900
 trade name 5800
 deferred income taxes
 goodwill 202000
 purchase price $ 267100
 acquisition two-year earn out.
 installments revenue growth.


wholly-owned subsidiary life insurance maintains separate assets funding pension contracts liabilities.
 31 2008 2007 level 3 assets $ 4 $ 12 .
 changes relate purchases sales gains losses.
 net income gains losses accrue contract owner not reported non-operating income consolidated statements.
 assets private equity valued third party managers.
 appraisals discounted cash flow techniques.
 investments private equity valued third party financing valuations business environment.
 note 2 fair value policies.
 changes 3 assets december 31 2008.
 december 31 2007 $ 1240 $ 2014
 unrealized gains losses -409
 purchases sales settlements issuances
 transfers level 3
 31 2008 $ 813 $ 64
net losses period unrealized gains losses assets $ -366 $ -17 ( )
 losses unrealized gains losses assets $ 366 ) 17 unrealized gains losses level 3 assets non-operating income consolidated statements.
 non-controlling interest expense investments gains losses not company.
 transfers assets level 3 performance fair value measurement.
.
 manager sponsored investment vehicles collateralized debt obligations investment funds.
 receives management own equity debt securities derivatives.
 engages client needs.
 financed capital equity debt holders.
 limited equity interests unfunded capital commitments sponsored investment funds capital support agreements enhanced cash funds.
 primary beneficiary absorbs losses receives returns holding variable interests.
determine beneficiary management estimates future cash flows assign probabilities scenarios.
 assumptions include market prices interest rates credit defaults gain realization liquidity marketability discount rates probability outcomes.
 blackrock primary beneficiary december 31 2008 three vies consolidation three investment funds two cash private equity.
 creditors recourse credit.
 2008 primary beneficiary two cash management funds 3/26/09 pm


tower corporation subsidiaries financial statements 2014 table effect net loss per share fair value provisions.
 stock-based compensation.
 estimated fair value option calculated black-scholes option-pricing model.
 loss $ -1141879 ( $ -450094 $ -194628
 stock-based employee compensation expense fair value -38126 ( -50540 -51186
 $ -1180005 ( $ -500634
 loss share $ -5. 84. -2. 35. -1. 15
 -6. 61 -1. 46.
 value financial instruments december 31 2002 carrying amounts. 6 $ 450. $ 210. 9 $ 212. 7 million $ 1. fair values $ 291. 4 million $ 187. 2 million $ 144. 4 $ 780. million.
december 31 2001 carrying company 5. 25%. 6. senior $ 450. million $ 204. 1 million $ 212. 8 million $ 1. billion fair values $ 268. 3 million $ 173. 1 million $ 158. 2 million $ 805. million.
 quoted market prices.
 values financial instruments approximate fair values december 31 2002.
 401 ( k ) plan employees.
 matches 35% contributions 5% compensation.
 contributed $ 979000 $ 1540000 $ 1593000 31 2002 2001 2000.
 2001 issued.
 asset retirement obligations. standards liabilities retirement long-lived assets.
.
 effective january 1 2003.
 first quarter 2003 financial position results.
 august 2001 issued.
-lived.
.
long-lived assets retains fundamental provisions.
.
 144 clarifies measurement classification issues.
.
.
 144 supersedes accounting reporting disposal business segment.
 effects disposal extraordinary events transactions.
.
 retains requirement.
 report discontinued operations broadens disposal transactions.
.
 excludes goodwill intangible assets not amortized accounting.
.
 implemented.
 144 january 1 2002.
 impairment assessments decisions discontinued operations standard 2002.


2018 ppg annual report 10-k research development.
 $ millions 2018 2017 2016
 research development costs depreciation facilities $ 464 $ 472 $ 473
 % annual net sales 3. 0%. 0 %. 2%. 2 %. 3%.
 prior year amounts accounting standards update.
 2017-07 net pension cost postretirement benefit cost.
 technology innovation ppg success.
 investment research development products profitable growth.
 product development macro trends leverage technology platforms.
 efficient innovation portfolio management.
 obtained government funding small research continue.
 owns operates facilities research development products processes.
 research development centers.
 development centers excellence.
 global competitive sourcing laboratory.
 not dependent single technology platform.
 management important success.
ppg uses complex raw materials building blocks products performance solutions.
 significant raw materials epoxy resins titanium dioxide pigments solvents coatings sand soda ash specialty coatings.
 include organic petroleum-derived inorganic titanium dioxide.
 largest production cost component.
 raw materials energy purchased outside supply arrangements requirements.
 supply managed contracts multiple sources identifying alternative materials technology.
 products use petroleum-derived bio-based materials product renewal.
 prices materials fluctuate energy prices supply demand crude oil gas.
 sourcing initiatives quality raw materials.
 qualifying local sources on-site resin production reduction titanium.
 subject standards chemicals impact raw materials.
 product stewardship efforts compliance standards.
ppg joined initiative child labor mica industry audits compliance policy.
 changes chemical registration regulations proposed eu countries china canada united states. brazil mexico korea.
 financial impact.
 anticipate chemical regulations increase implemented programs track.
 volatility costs currencies predict 2019 impact raw material pricing expects coatings raw material costs increase 2019 impacts varied by region commodity.
 logistics distribution costs sizable wages benefits.
 experiences fluctuating prices energy raw materials feedstock costs industry activity foreign currency rates government regulation supply demand factors.


citi 2019s common stock 2009 2010 note 33 financial statements.
.
 government holds citigroup securities 2009 citigroup pay quarterly stock dividend exceeding $ 0. 01 per quarter exceptions.
 dividend common stock obligations stock.
 comparison five-year return citigroup 2019s common stock s&p 500 index s&p financial index 2010.
 $ 100 invested december 31 2005 citigroup 2019s common stock 500 dividends reinvested.
 500 five-year return 2006 2007 2008 2009 2010.
 citigroup s&p 500 index financial index
 2006 119. 115.
 2007.
.
.
 2010. 111


.
 sfas 123 ( charge income retirement-eligible accelerated retirement rules.
 age service conditions vest without vesting period citigroup.
 2006 awards recognized cash incentive compensation.
 awards granted january 2006 expensed date grant.
 awards recognized vesting period.
 note 1 consolidated financial statements page 122 123.
 2003 to 2007 citigroup granted restricted deferred shares annually ownership program employees.
 replaced wealthbuilder stock option programs.
 shares after three years.
 last award 2007.
 unearned compensation expense represents market value citigroup common stock grant recognized charge income retirement-eligible.
 charge accelerated retirement rules.
 17 2007 approved management committee long- term incentive plan 1999 stock incentive.
mc ltip provides citigroup opportunity earn stock awards based performance.
 each equity award earned performance july 2007 to december 2009.
 three periods measured.
 value based on 2019s performance total shareholder return versus competitors return on equity targets.
 if 2019s return median receive shares.
 awards vest after 30 months.
 must citigroup employee january 5  2010.
 final expense adjusted based on roe tests.
 no awards earned 2008.
 no new awards made since.
 special retention stock awards made to senior executive officers.
 awards vest over two- or four-year periods.
 remain employed through vesting except.
 post-employment vesting for age service conditions.
 exempted from stock ownership commitment.
citigroup unvested stock awards december 31 2008 changes 12 months.
 unvested january 1 2008 153207132 $ 50.
 149140314 $ 26.
 cancellations $.
 $ 25.
 $ 47.
 december 31 2008 226210859 $ 36.
 average market value vestings $ 22. per share.
 $ 3. billion unrecognized compensation cost stock awards forfeiture.
 recognized 2. 6 years.


consolidated financial statements unrealized gain derivatives years december 31 2010 2009 2008 $ 1 million $ 16 million $ 30 million.
.
 covers all.
 employees.
 company makes matching contributions.
-matching contributions established maximum 6% eligible compensation.
 contribution determined.
 company-matching contribution 100% 2008 first two months 2009.
 suspended march 2009 june 2010 cost savings global recession.
 1 2010 reinstated 50% first 6%.
.
 january 1 2011 match increased to 75% first.
 compensation cash contributions 2010 2009 2008 totaled $ 9 million $ 7 million $ 42 million.
 plan employee stock ownership plan.
 tax deductible dividends on shares were $ 24 million $ 28 million $ 29 million 2010 2009 2008.
.
earnings millions 2010 2009 2008.
 interest income $ 34 $ 28 $ 26
 royalty income 58 45 52
 net earnings equity affiliates
 gain sale assets 8 36 23
 69 74 61
 $ 214 $ 178 $ 165
.
 stock-based compensation stock options restricted stock units contingent shares shareholder return.
 grants ppg industries.
 plan.
 future grants 4. million december 31.
 stock-based compensation cost $ 52 million $ 34 million $ 33 million 2010 2009 2008.
 income tax benefit $ 18 million $ 12 million $ 12 million 2010 2009 2008.
 awards.
.
 employees options purchase common stock fair market value.
 exercisable six 48 months maximum 10 years.
stock option shares issued treasury.
 ppg stock plan restored option 2003 ownership mature shares stock market value.
 fair value options measured date grant expense service period.
 ppg estimates black-scholes option pricing model.
 risk-free interest rate.
 treasury yield curve maturity expected life option.
 life calculated average vesting term maximum term.
 vesting term changed three years 2004 historical data life.
 dividend yield volatility based historical stock prices dividend amounts.
 2010 ppg annual report form 10-k


mondavi produces markets sells premium super-premium fine california wines.
 leading premium super-premium wine brands volume united states.
 acquisition robert mondavi supports portfolio growth super-premium fine wine.
 recognition globally.
 majority sales united states.
 intends leverage brands.
 expand distribution.
 growth philosophy.
 acquisition provides presence fine wine sector distribution international markets.
 supports strategy growth strengthens competitive position core markets.
 growth opportunities for premium super-premium fine wines united kingdom states other markets.
 paid cash robert mondavi shareholders $ 1030. 7 million.
 expects direct acquisition costs $ 11. 2 million.
 purchase price financed with borrowings 2004 credit agreement.
acquired assets recorded fair value.
 purchase price based future results robert mondavi operating cost synergies.
 mondavi reported constellation wines segment consolidated statement income.
 table summarizes estimated values assets liabilities.
 obtaining valuations refining restructuring plan 2006.
 allocation purchase price subject to refinement.
 estimated values december 22 2004.
 current assets 494788
 property equipment 452902
 178823
 trademarks 186000
 goodwill 590459
 assets acquired 1902972
 liabilities 309051
 long-term liabilities
 861111
 assets
 trademarks not subject amortization.
 goodwill deductible tax.
 robert mondavi winery properties assets sale february 28 2005.
 28 2006 $ 150 million to $ 175 million.
gain loss sale assets.
 hardy acquisition march 27 2003 acquired control hardy april 9 2003 acquisition hardy capital stock.
 50% ownership pacific wine partners joint venture 2001.
 201chardy acquisition. australia wine producers interests winer vineyards regions new zealand united states market sales operations.
 consideration paid hardy shareholders $ 1137. 4 million.
 direct acquisition costs $ 17. 2 million.
 march 27 2003.
 $ 1. 6 million reduction purchase price interest.
 interest expense consolidated statement income year february 29 2004.
 cash purchase price $ 1060. mil financed $ 660. million borrowings $ 400. million


.
 november 1  2010 redeemed $ 400 million 6. 65%. notes due january 15  2011.
 redemption $ 5 million early extinguishment charge.
 receivables securitization facility december 31 2010 recorded $ 100 million secured debt receivables securitization facility.
.
 variable interest entities lease transactions.
 created lease transactions equipment facilities no other activities assets liabilities outside lease transactions.
 right purchase assets fixed prices.
 benefits not.
 maintain operate assets contractual obligations.
 no control fair value leased assets.
 power direct activities control economic performance.
 obligation absorb losses right receive benefits primary beneficiary consolidate fixed-price purchase options.
 future minimum lease payments totaled $ 4. 2 billion december 31  2010.
.
locomotives freight cars.
 december 2010 2009 $ 2520 million $ 901 million depreciation $ 2754 million $ 927 million capital leases.
 charge income depreciation depreciation expense.
 future lease payments year capital leases.
 2011 613 311
 2012
 2013
 2014
 lease payments $ 4921 $ 2693
 interest
 payments
 majority capital lease payments locomotives.
 rent expense leases one month $ 624 million 2010 $ 686 million 2009 $ 747 million 2008.
 variable rental expense term.
 contingent rentals sub-rentals not significant.


subsidiaries table shows changes stock options 2008 weighted average exercise price.
 31 2005 12643761 $ 36. 53
 $ 56. 29
 $ 33. 69
 $ 39.
 31 2006 11752521 $ 39. 43
 1549091 $ 56.
 $ 35. 73
 $ 51. 66
 31 2007 11270815 $ 42. 12
 $ 60. 17
 $ 36. 25
 $ 54. 31
 31 2008 9923563 $ 46.
 weighted-average contractual term. years 4. 6 31 2008.
 total intrinsic value $ 66 million $ 81 million exercisable 31 2008.
 weighted-average value $ 17.
 total intrinsic value 2006 $ 54 million $ 44 million $ 43 million.
cash received 2008 from stock options $ 97 million.
 2004 provides grants.
 4-year vesting period.
 granted market close price.
 share-based compensation expense cost unvested restricted stock granted 2004 to 2008.


devon energy subsidiaries financial statements 2013 asset divestitures removed $ 26 million $ 706 million goodwill.
 canadian goodwill recognized 2001 gas.
 concluded fair value goodwill zero december 31 2014.
 decline oil prices production targets 2014.
 fourth quarter 2014 wrote off remaining canadian goodwill recognized $ 1. 9 billion impairment.
 intangible assets december 31 2014 $ million $ 36 million amortization.
-average amortization period 13. years.
 expense $ 36 million year december 31 2014.
 assets long-term assets balance sheets.
 estimated aggregate amortization expense next five years.
.
 2016 2017


direct activities control economic performance.
 obligation absorb losses receive benefits not primary beneficiary consolidate fixed-price purchase options not significant.
 future minimum lease payments totaled $ 3. 0 billion december 31  2014.
.
 leases locomotives freight cars.
 consolidated included $ 2454 million 1210 million depreciation $ 2486 million net 1092 million depreciation.
 charge income depreciation included depreciation expense.
 future minimum lease payments operating capital leases capital leases.
 2015 $ 508 $ 253
 2016 249
 2017 246
 2018 224
 2019
 1625 745
 minimum leasepayments $ 3725 $ 1927
 interest
 $ 1520
 95% capital lease payments relate to locomotives.
rent expense leases month $ 593 million 2014 $ 618 million 2013 $ 631 million 2012.
 variable rental expense lease term.
 contingent sub-rentals not significant.
.
 commitments contingencies claims lawsuits pending subsidiaries.
 effect operations financial liquidity recorded liability.
 lawsuits environmental costs commitments contingent liabilities guarantees operations financial condition liquidity insurance recoveries.
 cost injuries cost incidents.
 actuarial analysis expense liability.
 federal employers 2019 liability act compensation work-related accidents.
 damages assessed fault settlements.
 services rehabilitation programs employees injured work.
 personal injury liability not discounted uncertainty timing future payments.
 93% liability asserted 7% unasserted claims december 31 2014.


2012 ppg annual report form 10-k 27 operations 2011 increase reduced cash working capital $ 212 million sales growth.
 operating working capital subset total trade receivables doubtful accounts inventories first in-out less trade creditors 2019 liabilities.
 note 3 201cworking capital detail 201d item 8 form 10-k.
 key components.
 december 2012 2011 $ 2. 9 billion $ 2. 7 billion.
 percentage sales fourth quarter.
 trade receivables
 inventories
 creditor's liabilities
 operating working capital
 sales. 7%.
 working capital december 31 2012 increased $ 139 million prior year $ 21 million.
 operating working capital.
 trade receivables fourth quarter sales 2012 17. 6%. 6 % down. 9%. 2011.
sales 61 days 2012 improvement.
 inventories fourth quarter sales 13. 2%. 2 % up. 1%. 1 % 2011.
 inventory turnover 4. 8 times 2012 5. times.
 capital spending acquisitions $ 533 million $ 446 million $ 341 million 2012 2010.
 modernization productivity improvements expansion environmental control $ 411 million $ 390 million $ 307 million expected $ 350-$ 450 million 2013.
 sales 2. 7%. %. 6%. 3%.
 acquisitions $ 122 million $ 56 million $ 34 million.
 focus cash profitable earnings growth acquisitions.
 received $ 900 million cash chemicals merger.
.
 2012 north american architectural coatings akzo nobel. $ 1. 05 billion.
transaction approved by expected close 2013 approvals.
 2012 acquired spraylat. coatings company pelham.
 colpisa dyrup.
 total cost 2012 acquisitions $ 288 million.
 dividends $ 358 million $ 355 million $ 360 million 2012 2011 2010.
 since 1899 2012 41st year.
 mandatory contribution.
 plans 2012.
 2011 2010 voluntary contributions.
 $ 50 million $ 250 million.
.
 2013.
 contributions.
 $ 81 million $ 71 million $ 87 million 2012 2011 2010.
 mandatory contributions.
 2013 $ 75 million to $ 100 million.
 share repurchase activity 2012 2011 2010 1 million $ 92 million. $ 858 million. 1 586 million.
ppg stock purchased 2012 separation commodity chemicals merger georgia gulf.
 reinitiated share repurchase first quarter 2013.
 spending $ 500 million $ 750 million share repurchases.
 8 million shares authorization.
 2012 ppg five-year credit agreement banks.
 $ 1. 2 billion unsecured revolving credit facility.


altria release tuesday february 27 2018 10:00pm percentages operating companies income loss segment.
 2017 2016 2015
 smokeable products 85. 8%. 86. 2%. 4%.
 smokeless products 13. 2
 wine.
 other. 5. -1. 1. -2
 100. 0%.
 comparability income note 15.
 business operating results segment 7.
 management financial condition results operations annual report form 10-k.
 tobacco altria group. operating companies pm usa usstc subsidiaries ust middleton nu mark nat sherman.
 distribution.
. smokeable tobacco products cigarettes pm usa nat sherman machine- made large cigars pipe tobacco middleton smokeless tobacco usstc innovative tobacco products e-vapor nu mark.
 cigarettes pm usa largest company.
 marlboro-selling 40 years.
 nat sherman sells super premium cigarettes.
 shipment volume 116. 6 billion units 2017 decrease 5. 1%. middleton manufacture machine-made large cigars pipe tobacco.
 contracts third-party importer sells.
 black mild principal brand.
 sources cigars third-party sells.
 shipment volume 1. 5 billion units 2017 increase 9. 9%. 2016.
 tobacco usstc leading producer marketer smokeless tobacco.
.
 manufactured sold.
 shipment volume 841. 3 million units 2017 decrease 1. 4%. 2016.
 tobacco nu mark e-vapor developed products.
 production overseas contract manufacturing.
 2013 introduced e-vapor products.
2014 nu mark acquired e-vapor business green smoke.
 selling-vapor 2009.
 2017 altria group. purchased intellectual property tobacco products.
 december 2013. agreements philip morris international.
. exclusive license sell e-vapor products outside states. sell two heated tobacco platforms.
 july 2015.
 strategic framework joint research development technology-sharing agreement.
. e-vapor products states.
 technology licenses technical information sharing cooperation scientific assessment regulatory engagement approval e-vapor.
 fourth quarter 2016 pmi submitted risk tobacco product application heated tobacco product united states food drug administration pre-market tobacco application first quarter 2017.
 authorization group. exclusive license sell tobacco product united.
distribution competition raw materials altria group. subsidiaries sell wholesalers armed services.
 market tobacco competitive brand recognition loyalty quality taste price innovation marketing packaging distribution.
 promotional activities incentive price product coupons discounts.


clearing firm required deposit maintain balances cash.
 government securities foreign government securities bank letters of credit investments performance bond guaranty fund requirements.
 non-cash deposits marked-to-market daily.
 not reflected in financial statements interest.
 balances may fluctuate due investment choices changes contributions.
 rules cbot require collateral for physical commodities capital deposits arbitration matters.
 clearing firms cbot products cash.
 treasury securities letters of credit.
 positions once twice for futures options require lost value gained value.
 mark-to-market frequently.
 simultaneous default unrealized maximum exposure credit default one half day changes fair value positions.
 maximum exposure one full day changes value.
 2017 transferred approximately $ 2.billion clearing system settlement.
 reduces guarantee exposure performance bond guaranty fund contributions.
 guarantee liability immaterial recorded liability december 31 2017.
 2016 performance bond guaranty fund assets cash.
.
 government securities maturity 90 days or less.
.
.
 securities purchased cme cash collateral.
 benefits interest risks ownership accrue cme.
 investment income.
 no.
.
 government securities december 31 2017.
 amortized cost fair value securities 2016.
.
. securities
 cme systemically important financial market utility maintains cash account federal reserve bank chicago.
 maintained $ 34. billion $ 6. 2 billion.
 clearing firms instruct deposit cash programs.
 total principal $ 1.billion december 31. billion


ship submarine rotary fixed-wing aircraft land missile defense radar littoral combat ships simulation training services unmanned systems technologies.
 programs aegis combat littoral combat ship mh-60 tpq-53 radar-41 vertical launching system.
 results.
 2013
 net sales $ 7147 $
 operating profit
 margins 11. 8%.
 backlog year-end $ 11700 $ 10800
 net sales.
 decreased $ 85 million undersea systems decreased volume deliveries $ 55 million contract cost.
 offset higher net sales $ 80 million warfare systems sensors increased volume $ 40 million training logistics increased deliveries.
 operating profit 2014 decreased $ 62 million 7% 7 %.
 lower operating profit $ 120 million contract cost $ 45 million higher reserves training logistics.
decreases offset by higher operating profit $ 45 million performance reserves 2013 2014 $ 60 million increased risk retirements.
 adjustments $ 50 million lower 2014 2013.
 net sales decreased $ 426 million 6%.
 lower net sales $ 275 million ship aviation systems $ 195 million integrated warfare systems sensors $ 65 million training logistics $ 55 million aegis program.
 offset higher net sales $ 155 million lcs program.
 operating profit 2013 increased $ 168 million 23% 2012.
 higher operating profit $ 120 million contract cost $ 55 million $ 30 million undersea systems.
 offset lower operating profit $ 55 million training logistics $ 30 million lower-cost-market considerations $ 25 million ship aviation systems lower risk.
 profit lcs program.
adjustments net profit rate $ 170 million higher 2013.
 increased 2014 higher orders program space fence.
 increased 2013 higher orders lower sales warfare sensors service programs lower orders ship aviation.


salvage mechanical products six month warranty defects.
 remanufactured engines three year warranty.
 limited lifetime warranty aftermarket products.
 not performance obligation no transaction price.
 record warranty costs consolidated statements income.
 reserve calculated recorded expenses liabilities.
 changes warranty reserve.
 balance january 1 2017 $ 19634
 expense 38608
 claims -35091
 balance december 31 2017
 balance december 31 2018 $ 23262
 self-insurance reserves-insure employee medical benefits.
 stop-loss insurance liability.
-insure property casualty risk automobile general liability liability workers' compensation property coverage.
 premium costs expensed contract periods.
 reserve liabilities claims filed.
 monitor new claims insurance reserves.
self-insurance reserves $ 105 million $ 94 million $ 52 million $ 43 million current december 31 2018 2017 accrued expenses.
 remaining noncurrent liabilities estimates claims.
 outstanding letters of credit $ 65 million $ 71 million at december 31 2018 2017 payments.
 reserves expenses claims.
 authorized stock repurchase program $ 500 million common stock through october 25 2021.
 open market privately negotiated market conditions corporate needs.
.
 delaware law stock repurchases.
 2018 repurchased 2. 3 million shares $ 60 million.
 december 31 $ 440 million remaining capacity repurchase program.
 2019 repurchased 1. 8 million shares stock $ 46 million 22.
 cost method.
 adjusted transactions.
deferred income taxes differences tax liabilities financial statements.
 valuation allowance deferred tax assets future deductibility uncertain.
 provision taxes undistributed earnings foreign subsidiaries companies not invested.


damages to natural resources by discharge hazardous substances from two former waste disposal sites new jersey.
 company negotiated settlement jersey claims.
 to 150 acres undeveloped land groundwater recharge potential acquired for settlement pay state attorneys fees.
 notice settlement published december 2007 no objections received.
 company state new jersey signed formal settlement agreement transfer title property dismissed from lawsuit against codefendants.
 accrued liabilities insurance receivables legal proceedings complies with financial accounting standards.
 records liabilities for legal proceedings liability probable.
 records most likely estimate.
 discloses possible loss in excess reserves or.
 reserve records receivables for insurance recover.
 liability expense defending records receivables for insurance.
company discloses legal proceedings liability not probable or estimable believes possibility loss incurred.
 litigation uncertainties unfavorable rulings occur no certainty incur charges recorded liabilities.
 future adverse ruling could future charges results operations cash flows.
 believes future charges financial position insurance coverage.
 reexamines estimates liabilities expenses receivables liability.
 makes additions adjustments estimated liabilities.
 current estimates impact financial position results cash flows legal proceedings claims could change.
 estimates insurance receivables based policies case law experience claims nature claim records amount likely recovered.
 table shows categories on-going litigation environmental remediation liabilities probable liability taken reserves insurance receivables.
 december 31 ( millions ) 2007 2006 2005
implant liabilities $ 1  4 7
 64  93 130
 mask/asbestos 121  181  210
 332  380  447
 remediation liabilities 37  44  30
 15
 147  14 8
 pending legal proceedings settlement agreements liability not probable estimable unable estimate loss.
 amounts breast implant environmental remediation 2019s best estimate.
 single best estimate respirator/mask/asbestos estimate exceed reserves.


2015 annual report performance graph five-year period june 30 2015 market performance common stock s&p 500 index peer companies 5 year return jack henry associates. s&p 500 index peer group line graph.
 2014 2015
. 127. 148. 263.
. 148. 239.
. 166. 222.
 comparison assumes $ 100 invested june 30 2010 reinvestments dividends.
 returns calculated market capitalization peer group members.
 peer companies computer software hardware services financial institutions.
 aci worldwide. bottomline technology. broadridge financial cardtronics. convergys. corelogic. dst. euronet. fidelity. heartland payment. moneygram. technologies. total systems services.tyler technologies. verifone.
 micros.
 removed peer group acquired.


facility agreement american water awcc guarantee payment obligations.
 company acquired additional revolving line credit.
 commitment $ 16 million $ 2 million outstanding december 31 2015.
 table summarizes credit facility commitments sub-limits funds outstanding commercial paper borrowings 2015 2014 borrowing.
.
.
.
.
 1266 $ 1182 $ 150 626.
.
.
.
.
 weighted-average interest rate awcc short-term borrowings 2015 2014 0. 49%. 49 %. 31%. 31 %.
 line annum 2. 75%. 75 % month libor.
 table percentage capitalization december 31.
 common stockholders' equity 43. 5%. 5 %. 2%. 2 %. 6%. 6 %
 long-term debt stock redemption 50. 6%. 6 %. 1%. 1 %.3% 49. 3 %
 short-term long-term 5. 9%. 9 %. 7%. 7 % ) 6. 1%. 1 % )
 100% 100
 changes capital structure commercial paper balances.
 debt covenants financial non-financial covenants.
 default pay dividends issue debt access revolving credit.
 unaudited financial information subsidiary level non-compliance reporting requirements $ 8 million outstanding debt.
.
 long-term debt indentures covenants limit issuing debt secured assets.
 failure accelerate repayment obligations.
 ratio consolidated debt capitalization not. 70 to 1.
 december 31 2015 ratio. 56 to 1. compliance.


graph compares return dividends common stock standard's 500 composite stock index dow jones united states travel leisure index five year prices 2012 2017.
 royal caribbean cruises. 142. 251. 313.
. 132. 150. 152. 170. 208.
 dow jones travel leisure. 145. 169. 179. 192. 238.
 value common stock index $ 100 december 31 2012 dividends reinvested.
 performance not indicator future results.