pollutants discharged waters united states remediation.
 compliance with requirements regulations.
 congress considering legislation reduce emissions greenhouse gases carbon dioxide methane.
 state regional initiatives regulate greenhouse emissions underway.
 monitoring federal state legislation potential impact operations.
 direct greenhouse gas emissions oneok partners less than 6 million metric tons annual.
 continue quantify emissions report emissions mandatory reporting rule epa mid-2009.
 superfund imposes liability release hazardous substance.
 owner operator facility companies.
 liable costs cleaning damages natural resources health studies.
 chemical site security states homeland security rule 2007 companies reports sites chemicals.
 assessments facilities assigned four risk tiers high to low not.
 majority facilities tiered.
waiting for homeland security analysis tiered facilities require site security plans enhancements.
 strategy impact operations environment.
 strategies include developing greenhouse gas emissions inventory improving efficiency pipelines gas processing facilities developing technologies emission control carbon dioxide analyzing future energy investment.
 subsidiaries oneok partners participate processing transmission sectors distribution natural gas star program methane emissions.
 subsidiary honored star partner emission-reduction.
 low lost unaccounted-for methane gas practices pipeline facility maintenance.
 annual lost-and-unaccounted-for natural gas less than 1 percent of total throughput.
 employed 4742 people at january 31  2009 739 kansas gas service collective bargaining contracts.
 contracts.
 united steelworkers of america
 international union of operating engineers
brotherhood june 30


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 benefit plans funded status assets trusts.
 investments risk mitigation strategies tailored.
 allocation liabilities risk criteria.
 updates-term asset allocations studies.
 liability characteristics liquidity needs funding requirements rates return distribution.
 de-risking strategy american water pension plan volatility.
 revised allocations characteristics fixed income assets.


equity compensation plan documents exhibits form 10-k incorporated.
 table information dec.
 31 2006 shares ppg common stock issued under equity compensation plans.
 securities outstanding options warrants rights average exercise price securities future issuance excluding 9413216 $ 58. 35 10265556 plans not approved 2089300 $ 70.
 securities issued options warrants rights weighted average exercise price number securities remaining future issuance
 plans approved 9413216 $ 58. 10265556
 not 2089300 $ 70.
 11502516 $ 60. 57 10265556
 plans approved ppg industries.
 omnibus plan industries.
 incentive plan.
.
 plans not approved ppg industries.
 2000 stock plan.
broad stock option plan granted employees subsidiaries july 1 1998 option purchase 100 shares common stock $ 70. per share.
 options exercisable july 1 2003 expire june 30 2008.
 2089300 shares issuable dec.
 31 2006.
 excluded equivalents ppg industries.
.
.
.
 491168 common stock equivalents plans dec.
 31 2006.
.
 selected financial data five years.
 31 2006 exhibit 99. form 10-k.
 eleven-year digest page 72 annual report net sales income loss before accounting changes effect earnings dividends per share total assets long-term debt 2002 2006.
.
 financial condition operations performance 2006 sales increased 8% $ 11. billion 2006 $ 10. 2 billion 2005.
sales increased 4% acquisitions 2% volumes prices.
 cost. 7%. 5%.
 expense increased. 9%. 4%
 store expansions advertising optical.
 charges decreased 81 million 2006.
 185 million environmental remediation 42 million legal settlements 44 million insurance recoveries marvin hurricane.
 pretax 132 million marvin insurance 61 million federal glass class action settlement 34 million hurricanes rita 27 million asset impairment 19 million debt refinancing.
 earnings increased $ 30 million 2006 higher equity earnings fiber glass joint ventures higher royalty income.
 net income earnings share $ 711 million $ 4. 27 $ 596 million $ 3. 49 2005.
2006 $ 106 million 64 cents environmental remediation new jersey louisiana $ 26 million 15 legal settlements 23 million business restructuring 17 million 10 cents asbestos $ 24 million 14 insurance recoveries.
 2005 $ 117 million 68 cents legal settlements $ 21 million hurricanes katrina rita $ 17 million 10 cents asset impairment chemicals 12 million 7 cents debt refinancing $ 13 million 8 cents increase 2006 annual report 10-k


financial statements regulatory action gs bank usa requirements-capitalized depository institution 1 capital ratio 6% 6 % total capital ratio 10% 10 % 1 leverage ratio 5% 5 %.
 agreed federal reserve board capital ratios.
 1 capital ratio 8% 8 % total capital ratio 11% 11 leverage 6% 6 %.
 compliance capital requirements december 2013.
 regulatory capital ratios federal board.
 revised market risk regulatory capital requirements january 1 2013.
 increased capital requirements.
.
 1 capital $ 20086 $ 20704
 2 capital $
 20202
 risk-weighted assets $ 134935 $ 109669
 1 capital ratio 14. 9%. 9 % 18.
 total capital ratio 15.
 1 leverage ratio 16. 9%. 9 17. 6%. 6 %
revised capital framework to gs bank usa advanced banking.
 informed federal reserve board completed satisfactory parallel run changes calculations second quarter 2014.
 new minimum cet1 ratio 4% 4 to 4. 5%. 2015.
 changes standards-capitalized status cet1 ratio requirement 6. 5%. 1 capital ratio 6% to 8%.
 1 2018 banking organizations supplementary leverage ratio 3% or greater.
 basel committee guidelines for capital requirements institutions.
.
 impact capital requirements gs bank usa banking regulators.
 deposits insured by fdic.
 federal reserve board cash reserves.
 $ 50. 39 billion $ 58. 67 billion december 2013 2012 exceeded required reserve amounts by $ 50. 29 billion $. billion.
 transactions between gs bank usa subsidiaries.
subsidiaries gs bank regulated federal reserve board.
 limit transactions credit extensions require market terms.
 principal.
 subsidiary gsib wholly-owned credit institution regulated prudential financial conduct authority subject minimum capital requirements.
 2013 2012 capital requirements.
 sachs 2013 annual report


management jpmorgan chase. annual report wholesale credit portfolio exposure increased $ 36. billion 2009.
 increase driven $ 23. billion loans $ 16. billion receivables offset decreases receivables lending commitments $ 2. billion. billion.
 related january 1 2010 accounting guidance $ 17. 7 billion lending commitments-seller consolidation.
 $ 15. billion wholesale loans january.
 commitments loans increased $ 16. billion $ 8. billion client activity.
 increase loans $ 3. billion loan portfolio third quarter 2010.
 increase $ 16. billion receivables increased client activity prime services.
.
 loans retained
 loans held-for-sale
 fair value
2013 227633 204175 6006 6904
 receivables 80481 80210 529
 32541 15745 2014
 purchased receivables 391 2927
 wholesale credit assets 341046 303057 6040 7433
 lending commitments 346079 1005 1577
 wholesale credit exposure 687125 650212 7045 9010
 credit derivative hedges -23108 -48376
 liquid securities cash collateral derivatives -15519
 hedges 23108 securities collateral margin loans retail brokerage customers accrued interest balance sheets.
 ownership interest cash flows receivables transferred third-party seller bankruptcy-remote entity.
 nonperforming unfunded commitments risk.
 protection purchased single-name portfolio credit derivatives qualify hedge accounting.
.
credit derivatives pages 126 2013128 note 6 191 2013199 annual report.
 represents securities cash.
 excludes assets loan.
 table maturity ratings wholesale portfolio december.
 risk ratings s&p 2019s.
 value credit derivative hedges investment banks finance companies.


operating expenses revenue.
 2006 2005 2004
 marketing sales 27% 27 % 28% 28 %
 research development 31% 31 % 29% 29 %
 general administrative 10% 10 % 7% 7 %
 operating expense summary 2006 2005 increased $ 122. 5 million $ 58. 4 million stock-based compensation expense.
 $ 49. 2 million salary benefits costs bonus commission costs acquisition verisity.
 expenses increased $ 97. 4 million $ 63. 3 million salary benefit costs $ 9. million stock-based compensation expense restricted stock options increase $ 8. 6 million losses sale installment contract receivables $ 7. 1 million retirement chairman restructuring activities.
 marketing sales increased $ 39. 4 million $ 14. 8 million stock compensation expense.
 $.salary commissions benefits hiring commissions 2006 2022 $ 7. 8 million marketing conferences initiatives increased travel.
 marketing sales expenses increased $ 33. 1 million 2022 $ 29. 4 million salary bonuses commissions $ 1. 6 million stock compensation restricted stock options acquisitions decrease $ 1. 9 million marketing costs.


auto parts.
 subsidiaries financial statements 2013 2007 2006 2005.
 stock repurchase program 2007 authorized new repurchase program $ 500000 expenses.
 cancelled replaced previous $ 300000 repurchase program.
 stock open market privately securities exchange commission.
 2007 repurchased 8341 shares cost $ 285869 average $ 34. 27 per share 1330 previous 300000 program.
 77 shares repurchased $ 2959 unsettled.
 retired 6329 shares.
 $ 260567 remaining current repurchase program.
 repurchased 4563 shares $ 155350 average $ 34. 04 per share.
 2006 retired 5117 shares repurchased.
 $ 192339 average $ 37. 59 per share.
.
adoption fin 48 2006 company $ 2275 liability unrecognized tax benefits retained earnings.
 table unrecognized tax benefits fiscal year 29 2007.
 balance 31 2006 $ 16453
 increases 1279
 decreases
 increases 5340
 settlements -539
 expiration statute limitations -271
 balance december 29 2007 $ 20409
 unrecognized tax benefits annual tax rate.
 fin 48 interest penalties tax expense.
 accrued penalties interest $ 709 $ 1827.
 liability penalties interest $ 1843 $ 4421 .
 tax contingencies expense.
 penalties.
 unrecognized tax benefits change 12 months.
 conclude $ 2000 to $ 3000 contingencies settlements expiration statute limitations.
 resolutions current income tax examinations.


american tower corporation subsidiaries financial statements 7. 50%. notes mature may 1 2012 interest payable semi-annually may 1 november 1 2004.
 redeem. notes after 1 2008.
 initial redemption price. 103. principal amount decline may 1 100% 2010.
 redeem 35% 35 %. 50% notes prior february 1 2007 price equal 107. 50%. principal amount plus accrued unpaid interest net cash proceeds public equity offerings sixty days closing.
. notes 5. 0%. convertible notes 20448% junior indebtedness 12. 25%.
. covenants incur debt guarantee indebtedness issue preferred stock pay dividends investments merge consolidate sell assets transactions leaseback transactions.
 6. 25%. redemption 2004 redemption $ 212. 7 million.
. redeemed 102. 083%.principal unpaid accrued interest.
 redemption price $ 221. million $ 4. 8 million accrued interest.
 $ 7. 1 million first quarter 2004 loss redemption deferred financing fees.
 repurchases repurchased $ 36. 2 million. notes $. million cash $ 21. million voluntary prepayment.
 7. 50%. notes proceeds redeem 6. 25% notes repurchases $ 36. 2 million. voluntary prepayment $ 21. million loan payments long term debt capital leases five years.
 2004 73684
 2005
 2006
 2007
 2008
 1875760
 cash obligations 3700106
 discount 12. 25%. notes
 warrants
 holding january 2004.
 purchase 8. 7%. interest.
january 2004 options company owns 88% interest atc mexico subsidiary operations.
 purchase price.
 interest independent financial advisor payable cash or shares common stock.
 pay purchase price shares closing second quarter 2004.
 payment portion purchase price atc mexico performance objectives.


acquisition.
 liabilities level 3 inputs.
 debt reflected consolidated balance sheets cost.
 fair credit agreement borrowings approximated values $ 1. 7 billion $ 2. 0 billion.
 borrowings receivables facility approximated values $ 110 million $ 100 million december 2018 2017.
 fair values.
 notes ( 2023 ) $ 574 million $ 615 million $ 600 million.
 euro notes 2024 $ 586 million $ 658 million $ 600 million.
 euro notes ( 2026/28 ) approximated value $ 1. 1 billion.
 fair borrowings credit agreement receivables facility level 2 determined inputs interest rates financing transactions.
 estimated fair value upfront cash payment.
 fair value.
 notes ( 2023 ) level 1 determined market inputs.
fair values euro notes 2024 2026/28 determined market inputs level 2 fair value hierarchy.
.
 noncancelable office space warehouse distribution facilities trucks equipment.
 future lease commitments december 31 2018 years.
 2019 $ 294269
 2020 256172
 2021 210632
 2022 158763
 2023 131518
 777165
 $ 1828519
 rental expense $ 300 million $ 247 million $ 212 million 2018 2017 2016.
 guarantee residual values truck equipment leases.
 original cost.
 responsible shortfall.
 more paid over residual value.
 terminated leases 31 2018 guaranteed residual value $ 76 million.
 recorded liability guaranteed residual value equipment recovery guaranteed residual value.
 contingencies subject environmental pollution control laws regulations.
resolution contingencies financial position cash flows.


global business transactions tax outcome uncertain.
 cost reimbursement arrangements entities.
 company believes estimates no assurance final tax outcome historical income tax.
 differences income tax provision results.
 november 4 2007 adopted new accounting principles uncertain tax positions.
 determine tax position before benefit recorded financial statements.
 uncertain tax position not recognized less 50% likelihood sustained.
 no changes liabilities uncertain tax positions.
 october 30 2010 31 2009 liability $ 18. 4 million $. 2 million unrealized tax benefits settled effective tax rate.
 liability $ 9. million $ 8. million interest penalties.
 total liability $ 28. 3 million $ 26.2 million uncertain tax positions non-current believes ultimate payment twelve months.
 current income tax.
 includes interest penalties unrecognized tax benefits condensed consolidated statements income no change classification provisions.
 statements 2010 2009 2008 include $ 1. 8 million $ 1. 7 million $ 1. 3 million interest penalties tax positions.
 complexity estimate period liabilities.
 changes uncertain tax positions 2008.
 balance november 3 2007 $ 9889
 positions 2008 3861
 november 1 13750
 2009 4411
 october 31
 286
 october 30 18447
 years 2004 2005 examination.
 report proposed adjustments.
 recorded taxes penalties adjustments.
 four items additional potential tax liability $ 46 million.
company concluded four items additional tax liability.
 recorded additional tax liability appealing proposed adjustments irs taxpayers.
 initial meetings appellate division irs fiscal devices.
 financial statements


goldman sachs group.
 subsidiaries operating expenses influenced by compensation headcount business activity.
 salaries discretionary compensation amortization equity awards.
 discretionary compensation by net revenues financial performance labor markets business mix share compensation programs external environment.
 regulatory proceedings.
 operating expenses staff.
 2015 2013
 compensation benefits $ 12678 12691
 brokerage clearing exchange fees
 market development
 communications technology
 depreciation amortization
 occupancy
 professional fees
 insurance
 non-compensation expenses
 operating expenses 25042 22171
 staff period-end 36800
.
 changes reserves reinsurance business interest policyholder balances expenses property catastrophe reinsurance claims.
2013 majority reinsurance.
.
 $ 3. 37 billion agreement rmbs group.
 note 27 financial statements.
.
 operating expenses $ 25. billion 13% 13 % higher 2014.
 compensation benefits expenses $ 12. 68 billion unchanged.
 ratio revenues 37. 5%.
 staff increased 8% 8 % activity regulatory compliance.
 non-compensation expenses $ 12. 36 billion 30% % higher 2014 higher provisions mortgage litigation regulatory matters.
 offset lower depreciation amortization expenses reduction expenses sale metro.
 provisions litigation regulatory proceedings $ 4. 01 billion $ 754 million 2014.
 $ 148 million charitable contribution goldman sachs.
 compensation reduced.
 directors recipients.
.
 operating expenses $ 22. 17 billion unchanged 2013.
compensation benefits expenses $ 12. 69 billion 2014 unchanged.
 ratio revenues 36. 8%. 2013
 staff increased 3%.
 non-compensation expenses $ 9. 48 billion 4% 4 lower 2013.
 lower provisions litigation operating expenses decline insurance reserves.
 offset brokerage clearing exchange distribution fees.
 net provisions litigation regulatory proceedings 2014 $ 754 million $ 962 million 2013.
 charitable contribution $ 137 million goldman sachs gives.
 compensation reduced.
 asks directors recommendations recipients.


.
 reduced personal injury expense $ 80 million fewer claims lower settlement costs.
 2008 reduced asbestos costs $ 82 million studies reassessment liability asbestos claims.
 environmental toxic tort expenses $ 7 million lower.
 costs lower reduction personal injury expense.
 studies $ 80 million offset adverse development.
 settlement insurance claims hurricane rita higher equity income expenses lower.
-over-year comparison affected settlement insurance claims $ 23 million 2005 storm $ 9 million gain sale two company-owned airplanes.
 2006 % change.
 income $ 92 $ 116 $ 118 21 % 2
 interest expense -511 -482 -477
 income taxes -1318 14 % 26 %
 decreased 2008 lower gains real estate sales decreased returns cash investments.
rental licensing income lower interest expense sale receivables offset decreases.
 gains non-operating asset sales real estate reduction income 2007.
 rental income 2006 dispute decrease.
 cash investment returns increased $ 21 million cash balances higher interest rates.
 increased 2008 higher debt $ 8. 3 billion.
 lower interest rate. 1%
 increase $ 7. 3 billion. billion 2006 higher interest expense.
 lower interest rate.
 higher 2008 higher pre-tax income.
 tax rates 36. 4%
 lower tax rate reductions federal audits state tax law changes.
 tax rate 2007 increased illinois legislation deferred tax expense.
 income taxes $ 235 million higher higher pre-tax income tax legislation.
 increased deferred tax expense $ 27 million.
 effective tax rates 38.2007 2006.


management net interest income 2013 versus 2012.
 $ 3. 39 billion 13% lower 2012.
 due lower yields instruments lower interest expense sold collateralized financings.
 2011.
 $ 3. 88 billion 2012 25% lower 2011.
 lower yields.
 disclosures 2014 assets liabilities shareholders 2019.
 operating expenses influenced compensation headcount business activity.
 compensation salaries discretionary compensation amortization equity awards.
 discretionary compensation impacted net revenues financial performance labor markets business mix share-based compensation programs external environment.
 table operating expenses staff.
 2013 2011
 compensation benefits $ 12613
 brokerage clearing exchange fees
 market development
 communications technology
 depreciation amortization
 occupancy
fees 930 992
 insurance 176 529
 2931 2435 2072
 non-compensation 9856 10419
 operating 22469
 staff period-end 32900 33300
.
 revenues.
 report


.
 financial statements unaudited pro forma results 2003 $ 90. 4 million expense centerpulse recoverable.
 impairment loss litigation $ 54. 4 million cash income tax benefits future cash flows centerpulse 2002.
 less carrying.
 operating loss 5 years 10 depreciation instruments losses future administrative expense tax credits unutilized shorter carry back instrument cost january 1 2003.
 $ 8. 0 million gain sale orquest. undeployed instruments centerpulse.
 prepaid expense pro forma results not indicative obsolescence $ 54. 8 million december 31 2002 results operations administrative expense exchange instruments.
.
 new method accounting instruments cost assets transfx company june 25 2003 acquired transfx cost external fixation system product line immedica.
 five years.
 $ 14.8 million cash change goodwill technology 31 2003 earnings intangible assets.
 sold transfx cumulative effect accounting product 2001 distribution agreement $ 26. million $ 17. million net tax.
.
 cumulative effect adjustment $ 55. million income taxes $ 34. million implex.
 capitalization method 2 2004 earnings 31 merger agreement 2003.
 consolidated acquisition implex.
 earnings adjusted orthopaedics new jersey.
 retroactive application depreciation implex stock converted income taxes.
 value $ 108. million closing additional cash earn-out.
 inventories contingent growth implex inventories december 31 2003 2002 product sales 2006.
 net value transferred closing $ 89 million.
 finished goods $ 384. 206
 materials.
.
.
.
acquisition inventory. purchase.
 $ 527. reserves obsolete slow-moving inventory.
 accounting december 31 2003 2002 $ 47. million orthopaedic $ 45. million.
 provisions joint replacement $. million.
 january 1 2003 instruments 2002 2001.
 long-lived assets property reserve $ 11. 7 million.
 undeployed instruments $ 7. million $ 8. 5 million allowances obsolescence.
 31 2001.
 accumulated depreciation.
 depreciation computed straight-line method excess.
 change estimate product life cycles earnings $ 3. million tax.
.
.
 reviews instruments impairment


"distribution date.
 until or redemption expiration rights rights traded with common stock.
 until right exercised right holder rights stockholder.
 if acquiring each holder right receive shares common stock market value two times purchase price if company acquired in or 50% assets sold each right shares common stock acquiring company market value two times purchase price.
 after acquisition 50% common stock board directors rights for common stock or junior preferred shares at exchange rate one share common stock per right or half junior preferred share per right.
 prior acquisition 15% common stock redeem rights at price $ 0. 01 per right.
 rights anti-takeover effects cause dilution interest.
 common stock reserved for future issuance december 31 2005 company reserved shares under equity compensation plans.
company collaborations with companies drug discovery development commercialization.
 agreements provide financial support resources research development clinical drug candidates marketing sales products.
 discover develop commercialize pharmaceutical products.
 provide funding contract renewal termination options.
 stock option plans 17739
 vertex purchase plan 842
 401 ( k ) plan 270
 18851


35% 35 % ) due to undistributed foreign earnings no.
 taxes reinvested outside.
 september 29 2012 company had deferred tax assets $ 4. 0 billion liabilities $ 14. 9 billion.
 management believes forecasted income future reversals recover deferred tax assets.
 realizability valuation allowance.
 internal revenue service audit federal income tax returns 2004 2006 proposed adjustments.
 contested adjustments.
 examining 2007 through 2009.
 audit issues 2004 resolved.
 subject to audits by state local foreign tax authorities.
 provisions made for adjustments tax.
 outcome tax audits.
 could adjust income taxes.
 table presents financial information statistics years september 29  2012 24 2011 25  2010 millions.
equivalents securities $ 121251 81570 51011
 receivable $ 10930 $ 5369 5510
 inventories $ $ 776 1051
 working capital $ 19111 $ 17018 $ 20956
 cash flow $ 50856 37529 18595
 2012 $ 121. 3 billion cash equivalents securities increase $ 39. billion 49% 2011.
 $ 50. billion property $ 8. 3 billion intangible assets $ 1. billion dividends $ 2. 5 billion.
 portfolio highly-rated securities credit exposure.
 loss.
 2011 $ 82. 6 billion $ 54. 3 billion foreign subsidiaries.
 dollar-denominated holdings.
.
 taxation.
 balances working capital purchases commitments repurchases dividends liquidity requirements 12 months.
 expenditures $ 10.3 billion 2012 865 million 9. 5 billion manufacturing


synopsys.
 financial statements.
 acquisition technology portfolio reach market products fpga solutions prototyping.
.
 paid $ 8. per share options cash payment $ 223. million.
 assumed employee stock options units awards.
 cash $ 180618
 value stock awards 4169
 acquisition costs
 purchase price 192803
 professional services facilities closure $ 6. 8 million paid october 31 2009.
.
. million shares units exchanged ratio. 3392 per share.
 black-scholes valuation model.
 $ 4. million purchase price.
 unvested awards $ 5. million operating expense.
.
 $ 80. million intangible assets amortized seven years.
 research development expense $ 4. 8 million.
excess purchase price assets $ 120. 3 million not amortized.
 cost synergies sales growth expansion products market reach.
.
 allocated considerations $ 54. 8 million costs $ 1. 4 million assets liabilities goodwill $ 36. 6 million.
 assets $ 14. 3 million amortized nine years.
-process research development expense $ 3. 2 million.


synopsys.
 financial statements tax loss credit carryforwards future income tax liabilities carryforward amount expiration.
 expirationdate
 federal net operating loss carryforward 57265 2018-2034
 research credit 2019-2036
-2022
 13351
 169038
 7482 2023-2032
 state net operating loss 33201 2024-2035
 loss acquired companies limitations internal revenue code section 382.
 foreign tax credits offset tax foreign income.
 federal research tax credit reinstated 2016.
.
 recorded income tax effects share-based awards.
 excess tax benefits stock-based compensation.
 recorded deferred tax asset $ 106. 5 million research tax credit.
 excess tax benefits $ 38. million 2017.
 quarter repatriated $ 825 million foreign subsidiary.
repatriation.
 corporate tax reform company plans reinvest foreign earnings outside states.
 provides.
 income taxes.
 october 31 2017 $ 598. 3 million.
 taxes $ 110. 0 million.


capital resources december 31 2006 principal sources included cash equivalents sale of receivables revolving credit facilities commercial paper financing capital markets.
 $ 2 billion credit facilities no borrowings outstanding short-term borrowings.
 outstanding interest sale of receivables program $ 600 million.
 subject requirements investment grade bond rating.
 liquidity.
 access commercial paper market conditions.
 deterioration operating results financial condition.
 financial stability.
 2005 working capital deficit $ 1. billion.
 common lack liquidity.
 adequate resources daily cash requirements sufficient financial capacity current liabilities.
 cash flows.
 operating activities $ 2880 $ 2595 $ 2257
 investing activities
 financing activities -784 -752
 net change cash equivalents $ 54 $ -204 $ 450
activities higher income 2006 offset income tax $ 150 million voluntary pension contributions higher material inventories higher management incentive payments.
 higher income lower management 2005 bonuses not cash.
 voluntary pension contribution $ 100 million 2004 variance no pension contribution.
 offset cash 2004 tax refunds.
 insurance settlement lower balances decreased 2006.
 higher capital investments lower proceeds asset sales.
 increased capital spending higher proceeds sales increased cash 2005.
 lower net proceeds equity compensation plans $ 189 million 2006 $ 262 million.
 increase debt issuances higher debt repayments.
 repaid $ 699 million.
 higher outflows offset higher net proceeds equity compensation plans $ 262 million.


jpmorgan chase. annual report table shows credit risk derivative receivables liquidity risk december 31 2010 2009.
 receivables 2010
 fair value $ 1529412 $ 1565518 $ 1485109 $ 1519183
 adjustment
 2013 cashcollateral received/paid -71962 -65468 -38921 -39218
 value onconsolidated balancesheets $ 80481 $ 80210 $ 69219 $ 60125
 december 31 2010 2009 firm received liquid securi cash collateral $ 16. 5 billion $ 15. 5 billion posted $ 10. 9 billion $ 11. 7 billion.
 receives delivers collateral initiation derivative transactions against exposure.
 firm counterparties hold collateral non-daily frequency.
december 31 2010 2009 firm received $ 18. 0 billion $ 16. 9 billion delivered $ 8. 4 billion $ 5. 8 billion additional collateral.
 not netted against derivative receivables payables collateral exceeded fair value exposure.
 credit derivatives from credit risk debt third-party issuer reference entity transfer risk protection seller.
 expose purchaser creditworthiness seller credit event bankruptcy restructuring.
 seller receives premium risk underlying instrument credit event.
 firm purchaser seller protection uses purposes.
 risk manages portfolio selling protection corporate debt obligations.
 exposure entity offset contract purchase protection.
 uses derivatives mitigate credit risk commercial lending manage exposure residential commercial mortgages.
 note 3 pages 170 2013 187 annual report mortgage-related exposures.
firm uses credit derivatives.
.
 credit default swaps reference credit single entity or index.
 firm purchases sells protection single- name index- reference obligations.
 single-name cds index cds contracts.
-name default risk single reference entity index credit risk broader credit markets.
&p 500 cds index portfolio cds.
 new indices.
 credit event entity removed.
 cds referenced against portfolios customized exposure levels protection against $ 1 million credit losses $ 10 million portfolio.
 tranche cds.
 single-name index cds credit event neither reference entity.
 protection purchaser seller difference face value fair value reference obligation recovery value.
 protection purchaser hold debt instrument entity receive amounts due credit event.
credit-related notes funded credit derivative issuer purchases credit protec tion entity.
 pays issuer par value inception issuer pays payments credit risk.
 repays par value at maturity unless credit event.


entergy corporation subsidiaries arkansas payment january 2012.
 interim adjustment production cost allocation $ 156 million payment 22-month march 2013.
 apsc order payment customers.
 lpsc apsc requested rehearing ferc october 2011 order.
 december 2013 lpsc petition writ mandamus court appeals.
.
.
 final order.
 january 2014.
 denied lpsc petition.
 apsc lpsc intervened december 2011 lpsc filed protests.
 february 2014 ferc rehearing order october 2011.
 denied bandwidth remedy june 1 2005 refunds 20-month.
 granted rehearing interest bandwidth payments june december 2005 june 1 2006.
 february 2014 december 2011 compliance filing.
ferc order compliance filing bandwidth payments june - december 2005 seven months including interest.
 entergy sought rehearing.
 2014 lpsc filed petition review ferc 2014 orders.
 appeals.
.
 pending.
 april may 2014 entergy filed updated compliance filing payments receipts utility companies.
 net payments receipts interest millions.
 arkansas
 louisiana
 mississippi
 new orleans
 texas
 payments made may 2014.
 lpsc city council apsc filed protests.


investment policy note 15 employee benefit plans consolidated financial statements item 8.
 calculate expense pension plan reflecting trust assets fair market value.
 review actuarial assumptions pension plan discount rate compensation increase expected return plan assets.
 discount rate compensation increase affect pension expense.
 expected long-term return assets expense.
 8. 25%. past three years.
 return long-term assumption historical returns asset classes allocation strategy.
 performance assumption represents long-term prospective return.
 review adjust if warranted.
 term refers period projected benefit obligation disbursed.
 year-to-year returns vary. 61% 57%. assumption represents estimate long-term average prospective returns.
 selection process references historical data environment qualitative judgment future return expectations.
 change assumption investment strategy.
evaluate assumption examine viewpoints data.
 studies portfolios equity securities returned 10% long periods debt securities 6% ( 6 % annually.
 application returns plan 2019s allocation equities bonds produces 8% ( 8 %. 5%. point reference.
 examine plan 2019s returns.
 returns not indicators future returns low returns followed higher returns.
 annually examine assumption companies pension investment strategies determinations.
 data informs process qualitative judgment future investment returns.
 expected long-term return assets pension 2009 8. 25%. unchanged from 2008.
 intend decrease plan 2019s target allocation range equities five percentage points.
 expected long-term return to 8.% (. 2010.
 difference accumulated amortized to pension expense future.
percentage point difference return causes expense $ 8 million.
 table reflects effects pension expense changes annual assumptions 2010 expense baseline.
 change expense.
. 5%. decrease discount rate
. decrease long return assets
. increase compensation rate
 assumption.
 pretax pension expense $ 41 million 2010 $ 117 million 2009.
 reduction due amortization impact 2009 investment returns.
 pension plan contribution requirements not sensitive actuarial assumptions.
 investment performance contributions.
 current law pension protection act 2006 limits minimum maximum contributions.
 minimum contributions zero 2010.
 benefit plans less significant effect results


100 invested 11/17/11 10/31/11 reinvestment dividends.
 2013.
 delphi automotive s&p 500 automotive russell 3000 parts american axle borgwarner. cooper tire rubber dana holding. delphi automotive dorman products. federal-mogul. ford motor. fuel systems. general motors. gentex. gentherm. genuine parts. johnson controls. lkq. lear. meritor. remy international. standard motor products. superior industries trw automotive holdings. tenneco. tesla motors. goodyear tire rubber. tower international. visteon. wabco holdings.
.
 delphi automotive.
&p 500.
 automotive supplier.
 26 2013 dividend payments ordinary shares.
board directors declared quarterly dividend $ 0. 17 share paid quarter 2013.
 2014 dividend $ 0. 25 share payable february 27 shareholders 18.
 october 2011 delphi automotive approved distribution $ 95 million paid december 5  2011 members.


2011 3% 3 % ) increase carloads.
 maintenance weather disruptions higher volume 4% 4 % decrease train speed 2010 2009.
 terminal dwell time rail car terminals.
 improves asset utilization service.
 increased 3% 2011.
 additional volume weather challenges track replacement manifest shipments.
 increased 2% ( 2 % ) 2010 network plan length efficiency higher dwell time.
 rail car inventory.
 lower reduces congestion increases speed dwell time rail utilization.
 inventory decreased slightly 2011.
 decreased 3% ( 3 % ) 2010 13% 13 % ) increase carloads.
 maintained more cars off-line retired old cars.
 gross revenue ton-miles calculated weight miles.
.
revenue-ton-miles increased 5% 2011 3% carloads commodity 5% 5 energy shipments.
 increased 10% 9 % 2010 13% increase carloads.
 commodity automotive.
.
 increased. 70. 7%. % 2011.
 higher fuel prices inflation costs offset pricing gains productivity initiatives.
 improved. 6%. 6 % 2010. 1%. % 2009.
 volume increases pricing gains productivity initiatives fuel.
 up 5% % 2011 3% 3 % increase volume levels higher training increased capital projects.
 down 1% 1 % 2010 13% 13 % increase volume.
 leveraged volumes network efficiencies productivity initiatives.
 managed full- time-equivalent train engine force levels less half carload growth 2010.
 reduced force levels productivity initiatives.
satisfaction index 2013 performance 12 months.
 higher score.
 improvement 2011 reflects service quality capital investment program.
 return shareholders 2019 equity.
 net income $ 3292 $ 2780
 average equity $ 18171 17282 16058
 return commonshareholders 2019 equity 18. 1%. 11. 8%.


recorded other-than-temporary impairment $ 1. 15 billion 2009 compared $ 122 million 2008.
 $ 227 million credit recognized consolidated statement income.
 remaining $ 928 million other credit recognized taxes.
 $ 227 million 151 million credit losses $ 54 million impaired securities $ 22 million adverse changes future cash flows.
 majority impairment losses non-agency securities collateralized mortgages losses.
 asset-backed securities.
 management reviews values other-than-temporary impairment.
 current future interest rates cost basis fair value issuer- specific concerns.
 gains losses years december 31.
 2009 2008 2007
 gains securities $ 418 $ $ 24
 losses -50 -32
losses other-than-temporary impairment -1155 ( 1155 ) -122 ( 122 ) -34 ( 34 )
 losses not related credit 2014
 impairment losses -227 ( 227 ) -122 ( 122 ) -34 ( 34 )
 gains losses related investment securities $ 141 $ -54 ( 54 ) $ -27 ( 27 )
 losses component oci.
 reviews security impaired.
 impairment current fair value below amortized cost.
 impairment recorded securities before cash less than amortized cost impaired credit loss.
 review impaired securities includes identification evaluation impairment analysis future cash flows collectability impaired securities unrealized loss anticipated recovery period discussion evidential matter documentation results.
factors impairment 2022 length security impaired


environmental site activity 2013 2012 2011.
 open sites 284 285 294
 new sites 41 56 51
 closed sites -57 57
 sites 31 268 284 285
 environmental liability includes future costs remediation restoration monitoring costs excludes recoveries third parties.
 cost estimates based information financial viability technology laws regulations.
 ultimate liability remediation difficult parties cost sharing contamination volumetric data speculative nature remediation costs.
 estimates liability vary changes laws.
 current obligations results operations financial condition liquidity.
 property depreciation operations capital intensive base assets.
 capital program replacement acquisition construction.
 assets purchased constructed capitalized minimum criteria.
 cost depreciated estimated service lives high-density traffic corridors.rail lines abandonment yard switching tracks electronic yards lives measured in millions tons per mile.
 use group method depreciation similar characteristics lives grouped asset classes depreciated composite depreciation rates.
 asset class resources not.
 60 depreciable asset classes may increase changes technology asset strategies.
 determine estimated service lives depreciable property depreciation studies.
 three years equipment six years track assets. road property.
 analysis historical patterns changes operations technological advances maintenance practices expected salvage retirement.
 rail high-density traffic corridors measure service lives in millions tons per mile track.
 correlated to usage.
 lives vary rail weight condition. type.
 depreciation studies consider service lives.
rail high-density traffic corridors calculate depreciation rates dividing gross ton-miles carried. estimated service lives tons per mile.
 70 percent historical cost rail track material.
 estimated service lives majority 15 to 30 years.
 other depreciable assets compute depreciation estimated service lives


corporation america financial statements december 31 2002.
 accounting policies stock-based compensation pca management equity agreements 1999 125 employees.
 agreements options purchase 6576460 shares common stock $ 4. 55 per share holdings.
 five-year initial public offering full vesting restrictions 18 months.
 options vested january 2000 august 2001.
 1999 long-term equity incentive plan stock options appreciation rights restricted stock performance awards directors officers employees.
 four-year directors immediately.
 june 1 2009 4400000 shares common stock long-term equity incentive plan.
 stock option activity december 31 2002 2001 2000 weighted-average exercise price.
 balance january 1 2000.
.
.
 forfeited.
 december 31 2000.
953350 15. 45
 -1662475. 59
 11.
 31 2001 6478443.
 19. 55
 -811791. 52
 -63550. 44
 31 2002 6474102 9.


theme parks segment 2013 operating costs expenses operations repairs maintenance administrative expenses food beverage merchandise labor sales marketing.
 increased 2015 2014 additional costs orlando hollywood theme parks newer attractions fast fur food beverage merchandise costs attendance.
 increased 2015 $ 89 million universal studios japan $ 22 million transaction costs theme park china.
 nbcuniversal headquarters overhead personnel corporate initiatives.
 increased 2015 2014 higher employee-related costs severance costs % % change.
 revenue $ 766  $ 709  $ 600  8. 0%. 18. 1%.
 operating costs expenses 1664  1487 1089 11.
 operating loss before depreciation amortization $ -898 ( 898 $ -778 ( $ -489 ( 489.5 %.
 2013 revenue comcast spectacor owns philadelphia flyers wells fargo center arena operates arena management businesses.
 revenue increased 2015 2014 due food services new contracts.
 increase 2014 acquired businesses.
 2013 operating costs expenses overhead personnel initiatives branding.
 time warner cable merger divestiture $ 178 million $ 237 million 2015 2014 costs expenses increased 19% 19 % ) 2015.
 due $ 56 million contract settlement business initiatives new contracts.
 increased 2014 due $ 237 million time warner cable merger new contracts.
 2015 annual report form 10-k


2019s net sales increased $ 533 million 8%.
 higher volume $ 420 million air missile defense $ 245 million fire control systems.
 lower sales volume $ 75 million services $ 20 million tactical missile.
 operating profit increased $ 96 million 10%.
 higher profit $ 60 million missile defense $ 25 million services.
 $ 35 million higher.
 increased orders lower sales fire control systems lower higher tactical missiles.
 increased orders missile defense.
 net sales 2013 comparable 2012.
 low double digit growth air missile defense decline volume logistics services.
 operating profit margin comparable 2012.
 combat systems missile defense systems radar systems mission sensors aircraft littoral combat ships simulation training services unmanned technologies platforms ship systems integration military commercial training systems.
2019s programs include aegis-41 tpq-53 radar mh-60 lcs ptds.
 operating results millions.
 2011
 net sales $ 7579 7443
 operating profit 737
 margins. 7%. %. 6%.
 backlog year-end
 net sales increased $ 447 million 6% 6 %.
 higher volume risk retirements $ 395 million ship aviation system programs $ 115 million training logistics $ 30 million increased volume warfare systems sensors.
 lower net sales $ 70 million undersea systems combat system $ 25 million lower volume other programs.
 operating profit 2012 increased $ 92 million 14% % 2011.
 higher profit $ 175 million aviation risk retirements reserves $ 55 million contract cost programs 2011 presidential helicopter.
increase lower profit $ 40 million undersea reduced rates lower volume international combat array $ 40 million lower volume.
 profit $ 150 million higher 2012 2011.


2013 earnings per share calculated net earnings allegion plc by weighted-average ordinary shares.
 diluted eps calculated after adjusting denominator potentially dilutive shares share-based compensation plans.
 table summarizes weighted-average shares diluted earnings.
 2018 2017 2016
 shares 95.
 incentive stock plans.
 diluted shares.
 december 31. million stock options excluded from diluted shares anti-dilutive.
 2013 net revenues recognized performance obligations.
 obligation transfer control product.
 two revenue streams product sales services.
 99% consolidated net revenues involve contracts single performance obligation transfer of control customer.
 goods shipped from facilities control transfer points.
revenues measured consideration transferring control variable consideration sales incentive programs discounts volume rebates.
 preclude revenue estimate deduction revenues rates sales volumes.
 offers standard warranty product sales included in contractual price.
 cost accrued as liability.
 remaining net revenues involve services installation consulting.
 revenue delays recognition until obligations satisfied.
 customer acceptance provisions in sales arrangements.
 revenue recognition deferred until performance obligations satisfied.
 december 31  2018 no adjustments performance obligations recorded.
 asc 606 disclosure remaining performance obligations for contracts duration one year or less performance.
 transaction price not adjusted for significant financing component.
 sales value-added taxes excluded from net revenues.
 for shipping handling activities after as fulfillment instead of performance obligations.
activities included cost goods consolidated statements.
 company payment terms consistent with industries businesses.
 table shows net revenues years december 31 sales services disaggregated business segment.
 revenues contract terms conditions economic factors revenue similar


five-year performance comparison 2013 graph shareholder returns corporation compared peer group index dow jones s&p 500.
 investment common stock union pacific corporation index $ 100 december 31 2005 dividends reinvested.
 purchases equity securities repurchased 17556522 shares common stock average price $ 75. 51.
 table common stock repurchases fourth quarter 2010 shares purchased average price paid share plan maximum.
 oct. 1. 31 725450. 519554 17917736
. 1205260. 1106042 16811694
. 31 1133106. 15936694
 3063816. 2500596
 shares purchased quarter 563220 shares employees pay stock option exercise prices excess tax withholding obligations.
may 1 2008 board authorized repurchase 40 million shares march 31 2011.
 open market.
 management timing.
 february 3 2011 40 million program april 1 2011 march 31 2014.


warfighter.
 decreases higher net sales $ 140 million qtc acquired 2011 $ 65 million increased activity programs federal cyber security.
 is&gs 2019 operating profit 2012 decreased $ 66 million 8% 2011.
 lower profit $ 50 million odin contract completion $ 25 million reserves airborne surveillance $ 20 million lower volume c2bmc win-t.
 increase higher risk retirements $ 15 million twic $ 10 million increased activity programs.
 jtrs program offset reserves.
 adjustments $ 20 million higher 2012.
 decreased 2013 lower orders higher sales declining activities smaller programs downturn federal information technology budgets.
 backlog decreased 2012 completion programs odin.
 census jtrs.
 is&gs 2019 net sales decline 2014 downturn federal information technology budgets.
profit expected decline 2014 net sales comparable 2013.
 business provides air defense tactical missiles air-to-ground systems logistics technical services fire control mission operations engineering integration manned unmanned ground vehicles.
 programs include pac-3 thaad multiple launch rocket system hellfire air-to-surface standoff missile javelin apache fire control system sniper ae low altitude navigation infrared sof clss.
 results.
 net sales $ 7757
 operating profit
 margins. 4%.
 backlog
 net sales increased $ 300 million 4% 4.
 higher net sales $ 450 million air missile defense $ 70 million fire control $ 55 million tactical missile.
 offset lower net sales $ 275 million technical services defense budget reductions competitive.
increase fire control sniper lantirn sof clss offset lower volume longbow radar.
 tactical missile programs jassm fewer guided launch rocket javelin.


cash $ 704. million 2016 increased 154. million improved performance lower supplier payments offset tax accounts receivable sales.
 $ 549. 7 million decreased 472. million 2014 $ 750. million medtronic higher bonus payout.
 offset income tax payments $ 224. 5 million improved performance $ 50. million charitable contribution edwards lifesciences.
 $ 211. 7 million 2016 capital expenditures 176. million $ 41. million intangible assets.
 $ 316. million 2015 $ 320. million capital expenditures $ 102. million proceeds $ 119. million.
 $ 633. million 2014 purchases $ 527. 4 million capital expenditures $ 82. million.
 $ 268. 5 million treasury stock $ 662. 3 million debt $ 222. million stock plans.excess tax benefit stock $ 64. million.
 financing $ 158. 6 million 2015 purchases treasury stock $ 280. 1 million offset proceeds $ 87. 2 million excess tax benefit $ 41. 3 million.
 financing $ 153. million 2014 purchases treasury stock $ 300. 9 million offset proceeds $ 113. 3 million excess tax benefit $ 49. 4 million.
 contractual obligations commercial commitments december 31 2016.
 obligations less year 1-3years 4-5years 5years
 debt $ 825.
 operating leases 72. 22.
 interest debt 30.
 pension obligations 6.
 capital commitment obligations.
 purchase commitments 16.
 contractual cash obligations $ 951. 58. 867.$ 16.
 2018 reflects contributions pension plans.
.
 total benefit liability 2016 $ 50. 1 million.
 impacted


.
 employee retirement plans 2013 equities fixed-income investments less liquid instruments public.
 value inadequate diversification operating risks.
 investments diversified classes.
 policies include manager oversight investment guidelines compliance audit reviews.
 company seeks input independent advisor investment policy.
 sponsors post-retirement benefit plans medical dental life insurance retirees dependents states age length service.
 unfunded post-retirement benefit obligation $ 13 million december 31 2010.
 contribute $ 30 million to $ 35 million qualified defined-benefit pension plans 2011.
 pay benefits $ 3 million $ 10 million unfunded foreign non-qualified domestic defined-benefit pension plans.
 benefits paid next five years pension plans millions qualified non-qualified.
 38
 $
.
2019 equity 2007 board authorized repurchase 50 million shares stock.
 december 31 2010 repurchase 27 million shares.
 repurchased retired three million shares $ 45 million dilutive impact.
 repurchased retired two million 2009 nine million 2008 $ 11 million $ 160 million.
 cash dividends share. 30. 2010. 2009. 2008.
 decreased quarterly cash dividend $. 075. 235.
 financial statements 2014


product offerings include alpha-seeking active index strategies.
 returns market benchmark risk profile research models portfolio.
 index strategies track returns securities.
 include non-etf index products ishares etfs.
.
.
 institutional non-etf index assignments large-billion reflect low fee rates.
 net flows small impact blackrock revenues earnings.
 2017 equity aum totaled $ 3. 372 trillion net inflows $ 130. 1 billion.
 $ 174. 4 billion ishares etfs core funds emerging market equities offset non-etf index active net outflows $ 25. 7 billion $ 18. 5 billion.
 blackrock 2019s fee rates fluctuate aum mix.
 half tied international markets.
.
 fluctuations.
 revenues fee.
ended 2017 $ 1. 855 trillion net inflows $ 178. 8 billion.
 inflows $ 21. 5 billion diversified inflows municipal total return bond funds.
 inflows $ 67. 5 billion led core corporate treasury bond funds.
 non-etf index inflows $ 89. 8 billion driven liability-driven investment solutions.
 team manages balanced funds bespoke mandates diversified client base equities bonds currencies commodities risk management.
 solutions long-only portfolios alternative investments tactical asset allocation overlays.
 changes multi-asset aum 2017.
.
 asset allocation $ 176675 196545
 fiduciary
 futureadvisor
 395007
futureadvisor ishares.
-asset inflows demand advice $ 18. 9 billion institutional clients.
 defined contribution plans contributed $ 20. 8 billion inflows 2017 target risk.
 retail inflows $ 1. 1 billion multi income fund family raised $ 5. 8 billion.
 strategies 2022 asset allocation balanced products 41% multi-asset aum.
 equity fixed income alternative components.
 risk diversification derivatives allocation.
 flagship products global allocation multi-asset income fund families.
 target date risk products grew 16% 2017 inflows $ 23. 9 billion.
 institutional investors 93% aum defined contribution plans 87% aum.
 driven investments.
 asset allocation risk return.
 index products.
 fiduciary management services.
 partnership strategies.


citigroup common stock.
 cse award value divided fair market value.
 50% shares delivered april 2010 sale transfer until january 20 2011.
 retirement-eligible employees awarded cses april 2010 shares delivered april 2010 restrictions sale four installments january 20 2011.
 cse awards accrued compensation expenses 2009 recorded liability until settlement april 2010.
 stockholders approve paid new issues common stock liability reclassified equity.
 2009 management committee received 30% incentive awards 2008 performance vesting-equity awards.
 vest 50% if citigroup common stock meets target $ 10. 61  50% $ 17. 85  2013.
 target closing price equals exceeds 20 days 30 january 14 2013.
 shares not vested vest price delivery price target unvested.
dividend equivalents paid unvested awards.
 value recognized as compensation expense.
 july 17 2007 committee approved long-term incentive plan participants received equity award citigroup performance peer companies return targets.
 final expense three adjusted roe tests.
 no awards earned 2009 2008 2007 shares issued performance targets.
 new awards since 2007.
 participants 2008 2006 2005 elect receive award stock options.
 option program tables options awards.
 status citigroup 2019s unvested stock awards december 31 2009 changes 12 months weighted-average grant.
 january 1 2009 226210859 $ 36.
 new 162193923 $.
 cancelled awards -51873773.
 deleted awards -568377 $ 13.
 -148011884 $ 25.
unvested 31 2009.
 value vestings $ 3. 64 share.
 $. billion unrecognized compensation cost unvested stock awards forfeiture.
. years.


no share repurchases 2016.
 stock performance graph matches fidelity national information services. 5-year shareholder return common stock s&p 500 s&p supercap data processing outsourced services index. tracks $ 100 investment common stock index dividends 2011 to 2016.
 fidelity national information services. 134. 210. 246. 311.
 s&p 500. 116 153. 174. 177. 198.
 s&p supercap data processing outsourced services. 126 194. 218. 247. 267.
 stock price performance not indicative future price performance.
.
 historical statements data.


dividends pay quarterly dividends common stock.
 february 16 2007 board declared first quarterly 2007 dividend $ 0. 475 per share payable march 30  2007 stockholders march 20 , 2007.
 expect distribute 100% taxable net income 2007.
 board frequency dividends quarterly.
 policy.
 see 201ccautionary statements risk factors item 1a annual report 10-k.
 stockholders reinvest cash distribution common stock distribution reinvestment stock purchase plan.
 stock financial statements item 8 annual report.
 stock sales directors adopted trading plans rule 10b5-1 exchange act equity-based compensation.
 table summarizes equity compensation plans december 31 , 2006 category number securities options warrants rights average exercise price number securities future.
.
.8373727 equity compensation plans approved stockholders.
.
 18924 1145354.
 securities issued options warrants weighted average exercise price securities future issuance excluding
 equity compensation plans approved stockholders 1118051 $ 24. 8373727
 compensation plans not approved 18924 1145354
 1136975 $ 24.
 plans 1987 incentive compensation program 1996 stock option issuance plan 2000 incentive compensation plan 2004 stock plan directors employee director stock purchase plan 2006 incentive plan 2006 stock plan directors.
plans common stock purchase plan for directors non-employee directors receive stock 2019 fees nonemployee director deferred stock compensation plan fees executive deferred stock compensation plan officers receive units compensation.


1b.
 unresolved comments.
 2.
 december 28 2013 major facilities feet millions united states owned 29. 9 16. 7 46. 6 leased. 6 8.
 29. 16. 46. 6
 leased. 6. 8
 32. 22. 54.
 leases land expire 2062.
 leases 2028 include renewals.
 executive offices.
 wafer fabrication.
 building fabrication facility oregon.
 widen process technology.
 large-scale fabrication building arizona 2013.
 delay equipment installation facility capacity future technologies.
. wafer fabrication facilities israel china ireland.
 transitioning technology manufacturing 2015.
 assembly test facilities malaysia china costa rica vietnam.
 sales marketing offices worldwide near concentrations customers.
believe facilities suitable purposes productive capacity.
 identify allocate assets segment.
 property equipment 201cnote 27 operating segments geographic information ii item 8 form.
.
 201cnote 26 contingencies ii item 8.
.
 mine safety disclosures.


asia-pacific acquisition july 24 2006 fifty-six percent ownership hongkong shanghai banking corporation.
 provides card payment services asia-pacific.
 ten countries brunei china kong india macau malaysia maldives singapore sri lanka taiwan.
 paid hsbc $ 67. 2 million.
 additional $ 1. 4 million 2007 total purchase $ 68. 6 million.
 transition services agreement hsbc.
 payment processing 2010.
 results consolidated statements income.
 leading payment processing consumer money transfer company.
 merchants corporations financial institutions consumers government agencies facilitate payments.
 intermediary exchange information funds.
 incorporated global payments.
 2000 spun-off parent company january 31 2001.
 transaction processing services since 1967.
market products services united states canada asia-pacific.
 operate segments merchant services money transfer.
 merchant services targets financial institutions gaming government health care professional services restaurants retail universities utilities.
 money transfer targets immigrants europe.
 note 10 financial statements factors.
 revenues merchant services money transfer geography sales channel.
 2007 2006
 $ 558026 481273 410047
 canada 224570
 asia-pacific
 central eastern europe
 merchant services 929142
 money transfer 132381
 revenues $ 1061523 $ 908056 784331


stock option gains deferred compensation plan.
 american jobs creation act until december 31 2005 withdraw deferred.
.
 company leases facilities equipment software leases through 2022.
 agreements include renewal escalation clauses taxes insurance maintenance costs.
 rental expense $ 43 million 2007 $ 45 million 2006 $ 44 million 2005.
 future minimum rental payments long-term leases november 3 2007.
 30774
 2009 $ 25906
 2010 $ 13267
 2011 5430
 2012 3842
 12259
 $ 91478
.
 settlement stock option investigation 2004 inquiry stock option granting practices financial.
 2005 company tentative settlement.
 cooperated.
.
.
 offer settlement.
 commission approval.
 no assurance final settlement.
 inquiry two issues.
first issue company disclosure grants options employees directors financial results.
 options granted november 30 1999 november 10 2000.
 second issue grant dates options 1998 1999 2001.
 settlement grant date september 4 1998 options 8th one day later november 30 1999 29th earlier july 18 2001 july 26th five trading days after original date.
 analog devices  inc.
 notes consolidated financial statements 2014


2015 management actions sale transfer $ 1. 5 billion delinquent residential first mortgages $ 0. 9 billion fourth quarter transfer citifinancial loans-sale primary driver improvement delinquencies citi holdings 2019 residential mortgage portfolio.
 credit performance impacted delinquent loan sales transfers-for-sale trends hpi interest rates.
 north america residential first mortgages 2014state delinquency trends tables six.
 states regions highest concentration citi residential first mortgages.
 billions dollars
 $ 19. 37% ( 37 % ). 2%. 1% ( 1 % $ 18. 31% ( 31 % ). 6%. % 2% ( 2 % )
.8  1  751  12. 20 . 9 740
. 719  3.  695
. 735  2. 5. 9  713
. 723 . 700
. 9. 2014  711  2. 5. 7 680
 11. 21 . 710  18. 30  3.  677
 5 $ 51. 100% ( 100 % ). 7%. 7 % 1% 1 % 738  $ 60. 100% 100 % 2. % 4% 4 % 715
 51. 100% 100 %. % 738 $ 60. 100 %. 4% 4 % 715 totals.
 states region.
.
 loans canada puerto rico guaranteed.
 recorded long term commitments.
 balances unavailable.
ltv ratios loan balance appraised value calculated at origination updated market price data.
 new york jersey connecticut florida illinois judicial states.
 improvement trends 2015 due to residential first mortgages fourth quarter.
 majority citi 2019s foreclosure inventory residential.
 december 31 2015 inventory $ 0. 1 billion. 2%. total residential first mortgage portfolio $ 0. 6 billion 0. 9%. 2014 excluding guaranteed.
 agencies.
 loan portfolio fixed-rate lines of credit.
-rate loans amortizing.
 amortizing loan.
 20-year amortization period.
 december 31 2015 2019s loan portfolio $ 22. 8 billion $ 6. 3 billion fixed-rate $ 16. 5 billion home equity lines of credit.


management discussion analysis financial condition results operations 2013 amounts millions financing activities cash 2015 related repurchase common stock payment dividends.
 repurchased 13. 6 shares stock cost $ 285. dividend payments $ 195.
 cash financing 2014 purchase long-term debt repurchase common stock payment dividends.
 redeemed $ 350. 6. 25%. notes repurchased 14. 9 shares common stock cost $ 275. dividend payments $ 159.
 offset issuance $ 500. principal 4. 20%. notes.
 foreign exchange rate changes effect cash equivalents decrease $ 156. 2015.
.
 dollar stronger foreign currencies.
 foreign exchange rate changes cash equivalents decrease $ 101. 2014.
.
 dollar stronger foreign currencies.
 balance sheet data 31
cash equivalents marketable securities $ 1509. 7 $ 1667.
 short-term borrowings $ 150. $ 107.
 long-term debt.
-term debt 1610. 1612.
 total debt $ 1762. $ 1722.
 cash flow equivalents requirements twelve months.
 corporate credit facility uncommitted facilities.
 disciplined liquidity flexibility cash capital expenditures acquisitions common stock repurchase dividends.
 evaluate market conditions financing alternatives improve liquidity risk.
 capital markets depends factors credit rating.
 guarantee liquidity.
 operations lease obligations capital expenditures acquisitions common stock dividends taxes debt service pension postretirement plans.
 payments minority shareholders.


loss may 31 2015 unrealized gains losses hedge derivatives.
 millions after-tax gain loss
 losses interest rate hedges $ -36.
 gains foreign currency hedges.
 after-tax loss $.
 pre-tax gains losses net earnings 12 months $ 2. 3 million.
 credit-risk contingent features instruments investment grade credit rating.
 below investment counterparties request collateralization liability.
 fair value derivative instruments credit-risk contingent liability 31 $ 81. 5 million.
 posted $ 25. million collateral.
 triggered $ 56. million collateral.
 wal-mart stores.
 accounted 21 percent net sales 30 percent net sales.
 retail segment.
 no customer 10 percent net sales.
wal- mart represented 7 percent international 9 percent convenience stores foodservice.
 may 31 2015 accounted 29 percent.
 retail 6 percent international 9 percent convenience stores foodservice.
 largest customers.
 retail 54 percent 2015 net sales international 24 percent convenience stores foodservice 44 percent sales.
 enter interest rate foreign exchange commodity equity derivatives highly rated counterparties.
 monitor positions credit ratings limit credit exposure party.
 transactions potential losses nonperformance not incurred material loss.
 enter commodity futures transactions regulated exchanges.
 loss due credit risk $ 16. 7 million collateral.
 trans actions require collateral nancial instruments credit risk.
 collateral assets cash.
 treasury instruments held trust account defaults.
 suppliers access third party scheduled payments online.
 advances.
no economic interest relationship suppliers third party nancial institutions.
 accounts payable obli gations suppliers.
 may 2015 $ 448. 6 million suppliers third party.


performance graph compares shareholder returns 2019s information technology index 500 index 2017 2016 fiscal transition period 2016 2015 2014 2013.
 investment $ 100 common stock 500 index 31 2012 reinvestment dividends.
.
 500 5 year return payments. s&p 500 $ 100 invested 31 2012 reinvestment dividends.
 division s&p global.
.
 payments 500 index.
 globalpayments s&p500 index&pinformationtechnology index
 2012 100.
 113. 127. 115.
 161. 153. 142
 246. 171 169.
 367. 174.
 328. 188. 194.
 474. 229. 269.
 global payments.
 2017 10-k annual report


increased 2015 higher orders f-35 c-130.
 decreased 2014 lower orders f-16 f-22.
 aeronautics 2016 net sales increase mid-single digit increased volume f-35 c-130 decreased volume f-16.
 operating profit increase low single-digit increased volume decrease operating margins.
 advanced technology systems management services civil defense government customers.
 portfolio sustainment services.
 smaller contracts.
 impacted downturn federal agencies budgets increased re-competition fragmentation large contracts.
 operating results.
 net sales $ 5596 $ 5654 $ 6115
 operating profit
 margins 9. 1%. % 8. 3%.
 backlog year-end $ 4800 $ 6000
 net sales decreased $ 58 million 1% 1 %.
decrease lower net sales $ 395 million program completions lower funding increased competition fragmentation.
 offset higher net sales $ 230 million businesses acquired 2014 $ 110 million start-up new growth.
&gs 2019 operating profit increased $ 36 million 8% 2015.
 improved program performance risk retirements offset decreased operating profit.
 $ 70 million higher 2015.
 net sales decreased $ 461 million 8%.
 lower net sales $ 475 million programs reductions support $ 320 million decreased volume technical services.
 offset higher net sales $ 330 million start growth integration acquired companies.
 operating profit decreased $ 26 million 5% 2014.
 offset severance recoveries restructuring $ 20 million.
 adjustments comparable.


financial condition results operations include net interest coverage debt-to-book capitalization ratios.
 company 3-year credit facility december 31 2005.
 never borrowed domestic revolving credit facilities.
 utilization.
 conditions borrowing.
 contractual obligations guarantees purchase commitments future payments debt lease purchase as december 31 2005.
 payments due by 2006.
 long-term debt obligations $ 4033  $ 119  $ 1222 $ 200 529 1961
 lease obligations 1150  438 190 134
 purchase obligations 992  418  28  539
 contractual obligations $ 6175  $ 975  $ 1440 $ 337 $ 113 $ 615  $ 2695
 non-cancelable commitments.
december 31 2005 long totaled $ 4. billion $ 5. billion 2004.
 note 4.
 decrease due to redemptions repurchases $ 1. billion 2005.
 remaining $ 118 million of. 6%. notes due january 1 2007 reclassified current maturities.
 lease obligations owns facilities office factory warehouse space land equipment non-cancelable leases.
 2005 minimum lease obligations totaled $ 1. 2 billion.
 $ 254 million 2005 $ 217 million 2004 $ 223 million 2003.
 purchase obligations purchase inventory software promotional research development agreements not cancelable.
 through 2015.
 payments $ 992 million.
 software components supplies materials.
 one to three years.
agreements obligate company purchases permit with advance notice 60 to 180 days.
 liable for termination charges based on work performed inventory materials canceled.
 liability other than. 2003 outsourcing contracts for administration technology services.
 contracts extend 10 years expire 2013.
 total payments approximately $ 3 billion over 10 years can.
 penalty less than annual payments.
 find another source for services in-house.
 performance/bid bonds standby letters of credit outstanding government enterprise mobility networks.
 maturities to three years


includes capitalized lease obligations $ 3. 2 million $ 0. 1 million as december 31 2015 2014 included liabilities consolidated balance sheet.
 ebitda consolidated net income before interest tax depreciation amortization.
 adjusted ebitda.
 reconciliation ebitda.
 non-gaap financial measures.
 performance financial position cash flows amounts.
 differ.
 ebitda adjusted provide information operating performance cash flows future debt service capital expenditures working capital requirements.
 adjusted ebitda primary measure covenants definitions credit agreement senior secured term loan excess cash flow payment restricted payment covenant net leverage ratio.
 interest rate investments additional debt restricted payments additional principal prepayments beyond quarterly.
 details see note 8 long-term debt consolidated financial statements.
table net income ebitda adjusted ebitda.
 millions 2015 2014 2013 2012 2011
 net income $ 403. $ 244. $ 132. 119. $ 17.
 depreciation amortization 227. 207. 208. 210. 204.
 tax expense 243. 142. 62. 67. 11.
 expense 159. 197. 250. 307. 324.
 1033. 792. 653. 703. 557.
 non-cash equity-based compensation 31. 16. 8. 22. 19.
 loss extinguishment long-term debt 24. 90. 64. 17. 118.
 loss equity investments 10. -2
 integration 10.
 gain remeasurement equity investment -98.
 adjustments 6. 9. 82. 23.21.
 ebitda $ 1018. $ 907. $ 808. $ 766. $ 717.
 loss extinguishment long-term debt 24. 90. 7 64. 17. 118. loss equity investments 10. acquisition integration expenses 10. gain remeasurement equity investment 98. adjustments 6. 82. 23. 21 ebitda $ 1018. $ 907. $ 808. $ 766. $ 717. 2015 2014 2013 2012 2011 net losses extinguishments long-term debt.
 difference extinguishment net extinguished debt unamortized deferred financing costs.
 net income/loss equity investments.
 35% % loss equity awards.
 expenses acquisition.
 gain remeasurement 35% equity investment acquisition.


stock performance graph compares five-year performance company 2019s common stock with standard 500 ae index s&p 500 ae materials index 25 companies s&p aerospace defense select industry index 33 companies s&p 500 ae industrials index 69 companies sector.
 assumes initial investment $ 100 december 31 2013 reinvestment dividends.
 historical prices separation alcoa november 1 2016 adjusted reflect separation.
 information not incorporated filings securities act 1933 exchange act 1934.
 intends to replace s&p 500 ae materials index with s&p aerospace defense select industry index.
 companies industries s&p aerospace&p 500 industrials index reflect markets.
 three indices represented.
.
s&p 500 materials aerospace defense industrials return initial investment $ 100 december 31 2013 dividends reinvested 12/13 2019 division s&p global.
 rights reserved.
 december 31, 2013 2014 2015 2016 2017 2018
. $ 100 149. 94. 80. 119. $ 74.
 113. 115. 129. 157. 150.
 index. 97 114. 141. 120.
 aerospace defense industry index. 117. 139. 197. 181.
 index 109. 107. 127. 153. 133
. 129 150 aerospace defense industry index. 197 181 industrials 153


market risk exposed interest rates foreign exchange rates commodity prices equity prices.
 cause fluctuations earnings cash flows.
 manage hedging actions.
 counterparties rated institutions.
 credit limits.
 hedging transactions instruments.
 manage debt structure interest rate risk fixed- floating-rate debt derivatives.
 interest rate swaps forward-starting hedge exposure reduce financing costs.
 agree exchange difference fixed floating-rate interest amounts.
 primary exposure.
 interest rates.
 may 28 2006 $ 7. 0 billion principal amount outstanding.
 offsetting swaps.
 six pages 40.
 fluctuations affect investments earnings.
 foreign currency forward contracts option contracts hedge cash flow exchange rates.
.
 primary.
 exchange rate exposures canadian dollar euro australian dollar mexican peso british pound.
commodities exposed to market price risks.
 manage through financial instruments purchase orders contracts futures options swaps.
 exposures cereal grains sugar dairy vegetables fruits meats vegetable oils agricultural products paper packaging operating supplies energy.
 equity instruments price movements affect compensation expense.
 equity swaps risk.
 estimates maximum value changes interest rates foreign exchange rates commodity prices equity prices.
 method ology risk.
 95 percent confidence level.
 interest foreign exchange prices volatility.
 data riskmetricstm.
 calculations not represent actual losses.
 hedging correlates offset.
 positions debt invest ments interest rate swaps foreign exchange forwards commodity swaps futures options equity instru.
 foreign exchange commodities positions hedged.
table presents estimated one-day loss interest rate foreign currency commodity equity instruments may 28 2006 29 2005 average amount 28 2006.
 calculated methodology.
 millions 282006 292005
 interest rate $ 8 $ 10 18
 foreign currency
 commodity
 equity


page 43.
 equity investments increased $ 126 million 2006 $ 98 million.
 lpg operations equatorial guinea sales volumes plant expansions.
 ptc income distillate margins.
 revenues increased $ 4. 609 billion 2006 $ 7. 106 billion.
 rm&t segment costs crude oil refinery products.
 manufacturing expenses contract services labor costs energy costs.
 buy/sell transactions decreased $ 6. 968 billion 2006 increased $ 3. 314 billion rm&t.
 decrease accounting.
 crude oil prices.
 depreciation amortization increased $ 215 million 2006 $ 125 million.
 rm&t expense 38 percent interest mpc.
 detroit refinery expansion&t.
 $ 20 million impairment camden hills field.
 gas production water production.
administrative expenses increased $ 73 million 2006 $ 134 million.
 personnel staffing costs variable compensation business activity.
 stock compensation expense.
 stock price equity awards offset severance pension start-up costs.
 exploration expenses increased $ 148 million 2006 $ 59 million.
 $ 166 million $ 111 million $ 47 million.
 $ 47 million exiting cortland empire leases.
 $ 37 million $ 183 million 146 million.
 costs decreased $ 16 million.
 higher interest rates gains.
 decrease increased interest income cash balances tax deficiencies foreign exchange losses.
 foreign currency gains $ 16 million losses $ 17 million gains $ 9 million.
 minority interest decreased $ 148 million 2005 acquisition 38 percent interest.
 income taxes increased $ 2.308 billion 2006 2005 979 million 2004 due 4. 259 billion $ 2. 691 billion increases operations.
 increase income tax rate 2006 operations statutory income tax rate 90 percent.
 analysis income tax rates operations 2006 2005 2004.
 note 11 consolidated financial statements.
 2005 2004 statutory. income tax rate 35. 0%
 foreign operations tax credits.
 local taxes federal income tax.
.
 income tax rate continuing operations 44. 8%. 8 % 36. 3% 2%


issuance guarantees.
 adoption fasb interpretation.
 45 net income equity company.
 january 2003 fasb interpretation.
 46 201cconsolidation variable interest entities 51 201d issued.
 objectives guidance identification consolidation variable interest entities control voting rights.
 analysis.
.
 acquisitions health plan.
 2004 commenced opera ohio acquisition.
 medicaid-related assets purchase $ 6800.
 cost allocated liabilities.
 august 2003 acquired medicaid-related contract rights san antonio $ 1045.
 purchase price allocated contracts amor tized straight five years.
 acquired 100% ownership behavioral healthcare services company. 3%.
 consolidated financial state ments operations 1 2003.
 paid $ 1800 purchase gpa.
cost ownership interest allocated assets acquired liabilities assumed estimated subject.
 preliminary allocation goodwill $ 3895.
 not amortized deductible tax.
 disclosures excluded.
 2003 purchased contract name rights medication.
 purchase price $ 563 allocated contracts amortized five years.
 investor group.
.
 purchased 80% capital stock.
.
 october 2003 option purchase remaining 20% stock.
 purchase price $ 13258.
 financial statements december 2002.
 acquisition resulted intangible assets $ 3800 contract rights network.
 amortized over ten-year period.
 goodwill $ 7940 not amortized not deductible tax.
 changes purchase price allocation purchase remaining 20% stock intangible assets deferred tax liabilities.
 operations acquisition january 1 2001.
pro forma results reflect actual indicative future.
 revenue $ 567048 395155
 net earnings 25869 11573
 diluted earnings per common share.
. texas universities health 2002 purchased schip contracts texas areas.
 cash purchase price $ 595 contract rights amortized five years.
 2002 acquired life insurance wisconsin purchase $ 3527.
 allocated purchase price assets.
 $ 479 intangible assets licenses amortized financial subsidiaries


decentralized business model.
 segments focused product categories responsible for performance.
 enables accountability operational financial performance.
 on consumers customers competitors best practices.
 strong capital structure.
 exited 2017 strong balance sheet.
 repurchased 3. 4 million shares.
 $ 323. million cash equivalents total debt $ 1507. 6 million net debt $ 1184. 6 million.
 $ 635. million credit facility.
 cabinets plumbing doors security.
 net sales key brands net sales millions. 47% 47 % aristokraft schrock kemper starmark. 33% 33 % moen rohl perrin rowe victoria albert shaws waste king.
 sales millions brands
.
.33% moen rohl riobel perrin rowe victoria albert shaws
 doors. 9% therma-trufypon
 security. 11% 11 % master lock american lock sentrysafe
. 100%
 thomasville trademark hhg global designs.
 innovation fashion quality price service responsiveness.
.
 15% 2017 sales international markets.
.
 10% net sales 2017.
.
 centers 27% 27 % net sales 2017.
.
 manufactures custom semi-custom stock cabinetry vanities bath quality.
 portfolio.
 aristokraft diamond mid-continent kitchen craft schrock homecrest omega thomasville kemper starmark ultracraft.
 sales north america.
 sells kitchen bath dealers home centers wholesalers large builders.
home depot 34% cabinets 2017.
 competitors masco woodmark rsi suppliers.
.
 faucets accessories kitchen sinks waste disposals north america china moen rohl riobel perrin rowe victoria albert shaws.
 sells. canada china mexico southeast asia


amortized over remaining lease term useful lives 1 to 15 years.
 intangibles long review impairment annually.
 completed annual impairment test second 2011 no impairment.
 fourth quarter changes business strategy reduction forecasted revenue.
 update goodwill impairment test no impairment.
 goodwill assigned reporting segments date acquisition.
 evaluate goodwill fair value carrying value.
 market approach income approach future cash flows.
 revenue costs.
 amortize intangible assets finite lives over estimated useful lives review impairment.
 monitor events.
 recoverability future cash flows.
 less recognize impairment loss excess carrying amount fair value.
 intangible asset impairment charges fiscal 2011 2010.
 assets amortized over estimated useful lives 1 to 13.
amortization economic benefits intangible asset consumed.
 average useful lives.
 life years
 purchased technology
 customer contracts relationships
 trademarks
 acquired rights technology
 localization
 intangibles
 useful life years software development costs capitalization sold begins technological feasibility completion working prototype no critical bugs release candidate.
 amortization begins software ready use.
 software development costs between completion prototype availability.
 capitalize costs customized software systems development stage.
 costs payroll expenses employees.
 capitalization begins preliminary project stage ceases project ready purpose.
 systems consolidated financial statements


realty investment trust estate depreciation 2007 depreciation amortization.
 balance december 31 2004 $ 595338
 83656
 deductions retirements -15244
 2005 $ 663750
 89564
 deductions -12807
 balance 2006 $
 96454
 deductions retirements -80258
 balance 31 2007 $ 756703


cds adjustment credit protection banks risk.
 zero recovery receivable.
 cds hedges purchased counterparty exposure funded lending hedging credit risk.
 zero recovery.
 december 31 2013 peripherals exposure overnight deposits $ 111 million.
.
 monitors credit exposure.
 products products.
 utilities
 banks securities 2358
 funds exchanges financial services 2433
 vehicles
 governments 1597
 healthcare 1089
 industrials 914
 governments 816
 not-for-profit organizations 672
 insurance 538
 real estate 503
 consumer staples 487
 1157
 note 12 consolidated financial statements.
 mutual funds pension funds private equity real estate funds exchanges clearinghouses financial services.
.
operational risk loss damage company reputation inadequate processes systems external events. fraud legal compliance assets.
 company risk business activities including revenue-generating. sales trading control. technology.
 legal regulatory compliance risk. established operational risk framework control risk.
 management mitigating legal regulatory reputational risks.
 framework evolving.
 implemented operational risk data assessment systems monitor analyze risk events factors scenario analysis.
 data operational risk capital model.
.
 internal loss data scenario analysis inputs external operational incidents environment control factors metrics indirect inputs.


limitations effectiveness controls.
 prevent errors fraud.
 system objectives met.
 design resource constraints benefits relative costs.
 assurance misstatements error fraud fraud.
 assumptions future events assurance goals future conditions.
 subject risks.
 controls inadequate changes conditions compliance policies.
 fail meet financial reporting obligations reputation business operating results harmed market price stock decline.
.
 unresolved.
.
 december 31 2016 major facilities feet millions united states.
.
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. 7 9
 feet unitedstates othercountries 31. 19
.
 34. 26 60
 leases municipal grants land expire 2109.
 leases 2058 renewals.
 executive offices.
 wafer manufacturing activities.
 wafer fabrication facilities reserving building for additional capacity future technologies.
 construction equipment installation.
 information 201cmanufacturing.
 facilities suitable purposes productive capacity.
.
property plant equipment 4 operating segments geographic information ii 8.
.
 201cnote 20 commitments contingencies ii 8.
.
 mine safety disclosures.


inc.
 financial statements 2014 agreements.
 historical experience future loss determined fair value indemnifications not material financial position results.
 involved legal proceedings product liability trademark rights.
 proceedings impact financial position results.
 restructuring charges 2009 management structure consumer focus innovation scalable long-term cost structure.
 reduced global workforce 5% incurred pre-tax restructuring charges $ 195 million severance costs workforce reduction.
 additional costs future.
 restructuring charge reflected corporate expense line pre-tax income 19.
 activity restructuring accrual year may 31 2009.
 restructuring accrual 2014
 severance costs 195.
 cash payments.
 non-cash stock option restricted stock expense.
 foreign currency translation.
 2014 149.
accrual balance may 31 2009 relieved 2010 2011 severance payments.
 restructuring consolidated balance sheet.
 reorganized nike brand operations.
 regions. middle east africa asia pacific americas.
 quarter 2009 new model.
 first quarter 2010 six geographies north america western europe central/eastern europe greater china japan emerging markets.
 sale starter brand iconix brand group.
 $ 60. million.
 gain $ 28. million may 31 2008.


form 10-k non-gaap income before taxes diluted share ebitda adjusted margin financial measures.
 provide information performance impact.
 period-over-period performance.
 adjusted ebitda senior secured term loan facility investments additional debt restricted payments dividends share repurchases additional principal prepayments loan quarterly.
 details long-term debt financing arrangements financial condition results note 10 consolidated financial statements.
 definitions non-gaap income before taxes net income adjusted ebitda reconciliations income 201cresults operations 201d.
 key business metrics.
 years 2017 2016 2015
 net sales $ 15191. $ 13981. 12988.
 gross profit 2449. 2327. 2115.
 income operations 866. 819. 742.
 net income 523.424. 403.
 non-gaap income 605. 569. 503.
 ebitda 1185. 1117. 1018.
 daily sales 59. 55. 51.
 debt 3091. 2970. 3222.
 cash conversion cycle
 debt 3091. 2970. 3222. total debt minus cash equivalents.
 sales supply merchandise inventory minus purchases three-month average.


2009 annual report 2008 revenues credit union systems services increased 14% 2007.
 revenue components.
 license revenue largest growth system credit unions strong sales.
 revenue largest 34 percent growth eft support 10 percent in-house support.
 gross profit increased $ 9344 2008 license revenue highest margins.
 positive cash flow operations used funds short borrowings revolving credit capital requirements.
 expect trend.
 cash equivalents increased $ 118251 june 30 2009 $ 65565 2008.
 summarizes net cash operating activities 2009.
 net income $ 103102
 non-cash expenses 74397
 receivables
 deferred revenue
 assets liabilities
 net cash operating activities $ 206588
cash increased $ 25587 to $ 206588 2009 $ 181001 2008.
 receivables $ 21214.
 2010 software maintenance billings more cash collected.
 more cash 2008.
 investing $ $ 3027 contingent consideration acquisitions.
 $ 102148 $ 48109 $ 1215 contingent consideration.
 capital expenditures 2009 $ 31562 $ 31105 2008.
 software development $ 24684 $ 23736.
 financing $ 94675 repurchase 3106 shares common stock dividends $ 26903 $ 13489 repayment revolving credit facilities.
 offset proceeds $ 3773 stock options sale $ 348 excess tax benefits.
 cash $ 101905 repurchase 4200 shares common stock $ 100996 dividends $ 24683 $ 429 net repayment revolving credit facilities.
financing offset by $ 20394 stock options sale common stock $ 3809 excess tax benefits.
 fiscal 2008 us financial markets institutions shaken negative developments home mortgage industry subprime mortgage-backed securities.
 global economic downturn.
 issues collection efforts future impact liquidity minimized by cash recurring revenue credit.


.
 locomotives freight cars.
 consolidated statements december 2016 2015 $ 1997 million $ 1121 million depreciation $ 2273 million $ 1189 million depreciation capital leases.
 charge income depreciation depreciation expense.
 future lease payments 31 2016.
 461 221
 2018
 2019
 2021
 lease payments $ 3043 $ 1355
 interest
 1105
 96% 96 % capital lease payments locomotives.
 rent expense leases one month $ 535 million 2016 $ million 2015 $ 593 million 2014.
 variable rental expense term.
 contingent rentals sub-rentals not significant.
.
 lawsuits pending against subsidiaries.
determine effect claims on operations financial liquidity.
 recorded liability probable estimated.
 lawsuits claims environmental costs commitments contingent liabilities guarantees financial liquidity insurance recoveries.
 cost cost.
 actuarial analysis expense liability.
 federal employers 2019 liability act compensation work-related accidents.
 damages assessed fault out-court settlements.
 offer services rehabilitation programs for employees injured work.
 personal injury liability not discounted uncertainty timing future payments.
 94% recorded liability related asserted 6% 6 % unasserted claims 31.
 uncertainty future costs range $ 290 million to $ 317 million.
 record low end range loss probable.
 estimates vary litigation.


recoverability goodwill measured at reporting unit level begins assessment fair value less than carrying amount two-step goodwill impairment test.
 first step compares carrying amount to estimated fair value.
 exceeds carrying not impaired second step not necessary.
 carrying value second step performed carrying value compared to implied fair value.
 carrying value impairment exists recognized.
 calculation estimated fair value based on two valuation techniques discounted cash flow model market adjusted multiple earnings.
 implied fair value determined.
 value allocated to assets liabilities including unrecognized intangible assets price paid to.
 recoverability of intangible assets indefinite useful lives.
 determined on relief from royalty methodology based on implied royalty paid to license use asset.
present value after-tax cost savings.
 indicates estimated fair value asset.
 excess impairment loss.
 intangible assets patents customer finite useful lives amortized straight over estimated economic lives.
 weighted-average lives.
 customer relationships
 trademarks
 technology/patents
 recoverability intangible assets finite assessed property plant equipment.
 income taxes-off income tax expense recorded.
 applies.
 cash tax payments current deferred taxes tax balances.
 cash paid income taxes year december 31 2015 $ 80. 6 million.
 income tax accounts balance sheets include taxes deferred taxes spin-off.
 calculation income taxes involves judgment estimates allocations.
 deferred tax assets liabilities determined temporary differences financial reporting tax bases enacted tax rates.
company recognizes future tax benefits net losses tax credits.
 reviews recoverability deferred tax assets profitability future income tax planning strategies.
 records valuation allowance future tax benefit.
 product warranties accruals recorded sale estimated terms experience.
 assesses liabilities adjustments warranty claims information.


corporation subsidiaries financial statements.
 long-term obligations business acquisitions 2007 2006 2005 issued promissory notes $ 1. 7 million $ 7. 2 million $ 6. 4 million.
 interest annual rates 3. 6. payable maturity monthly installments.
 assumed liabilities business acquisition quarter 2005 promissory note balance $. 2 million.
 annual interest rate retired 2006.
 commitments contingencies leases office space warehouse distribution facilities trucks equipment.
 future minimum lease commitments 31 2007.
 2008
 rental expense leases $ 27. 4 million $ 18. 6 million $ 12. 2 million 2007 2006 2005.
 guaranty residual values truck equipment leases.
 original cost.
 responsible shortfall.
 more residual.
terminated operating leases december 31 2007 residual value $ 24. 0 million.
 december 2 2005 ford technologies complaint commission keystone five respondents four taiwan manufacturers.
 december 12 2005 ford amended complaint.
 infringed 14 design patents


clawback improbable.
 company records deferred interest liability cash allocations revenue recognition criteria.
 2017 2016 $ 219 million $ 152 million deferred interest.
 paid employees.
 timing recognition performance fee revenue unknown.
 changes deferred interest liability 2017 2016.
 balance $ 152 $ 143
 increase unrealized allocations 75
 performance fee revenue
 balance $ 219 $ 152
 2017 2016 2015 performance fee revenue totaled $ 594 million $ 295 million $ 621 million.
 technology risk management recorded positions.
 2017 2016 risk management revenue totaled $ 677 million $ 595 million $ 528 million.
 adjustments initial estimates immaterial revenue record performance fee revenue thresholds exceeded clawback improbable.
.
revenue contracts customers.
 2014 financial accounting standards board issued standards update.
 outlines model revenue supersedes current guidance.
 changes accounting contract costs revises criteria principal agent.
 key changes revenue recognition revenue contracts costs.
 significant distribution costs net against revenues expense gross basis.
 adopted 2014-09 effective january 1 2018 retrospective 2016 2017 restated future filings.
 cumulative effect adjustment 2016 earnings.
 expects net gross revenue $ 1 billion gross expense 2016 2017.
 operating margin decline adoption.
 no material impact adjusted operating margin.
 accounting pronouncements december 31 2017 note 2 accounting policies consolidated financial statements part ii item 8.
.
 market.
 investment advisory administration fees value performance fees returns.
december 31  2017 company investment fees based on aum investment funds.
 equity market prices interest rates spreads foreign exchange rates lower fees.
.
 leading investment management firm blackrock devotes resources identifying market risks.
 board adopted guidelines review investments audit committee board.
 blackrock exposed equity market price interest rate/credit spread foreign exchange risk.
 sponsored investment products real assets private equity hedge funds.
 co-investment performance track record hedge deferred compensation plans regulatory purposes.
 seed capital hedging program swaps hedge market interest rate exposure.
 december 31 2017 outstanding return swaps $ 587 million.
 no outstanding interest rate swaps.


pension expense.
 2015 2014
 $ 68. $ 135. 135.
 terminations settlements curtailments 7. 35. 5.
 discount 4. 1%. 1 %. 6%. 6 %
 return 7. 5%. 5 %. 4%. 4 %. 7%. 7 %
 compensation 3. 5%. 5 %. 5%. 5 %. 9%. 9 %
 2016 service interest cost spot rates cash flows.
.
 benefit obligation.
.
 expense decreased spot rate approach reduced service cost interest cost new mortality tables.
 items $ 7. 3 settlement losses $ 6. termination benefits $ 2. curtailment gains $ 1.
 business restructuring cost reduction actions.
.
decrease pension expense return 40 bp compensation lower service interest cost.
 offset higher amortization actuarial losses 60 bp decrease discount rate.
. settlement losses $ 21. termination benefits $ 8. curtailment losses.
 business restructuring cost reduction.
 pension expense $ 70 to $ 75 increase $ 10 $ 15 2016 discount rates asset experience spin-off new mortality tables.
 pension settlement losses $ 10 to $ 15.
 $ 164 amortization losses $ 121 2016.
 net losses $ 484 lower discount rates improved mortality projections.
 gains/losses amortized expense.
 discount rate.
 curtailment loss $ 5 to $ 10 employees transferring versum.
 discontinued operations.
 liabilities pension.
pension funding includes contributions benefit payments unfunded non-qualified.
 contributions benefits surpluses.
 legal funding requirements tax deductions.
 analyze liabilities.
 2016 2015 cash contributions benefit payments $ 79. 3 $ 137. 5.
 2017 contributions defined benefit plans estimated $ 65 to $ 85.
 based contributions plans benefit payments unfunded


tower corporation subsidiaries financial statements 2014 $ 10. 08 $ 7. 05 $ 6. 32 per share.
 assumptions pricing model july 1 2005 2013 december 31.
 risk-free interest rate 3. 22%. 22 %. 40%. 17%. 40%. 23%. 23 %.
 option grants. 25 years 4
 volatility stock 29. 6%. 6 % 75. 3%. 79. 2%. 2 80. 6%. 6 % 86. 6%. 6 %
 volatility stock mexico south america
 dividends
 option exchanges 2004 issued employees 1032717 options price $ 11. 19 per share.
 voluntary option exchange program 2003 accepted 1831981 shares common stock exercise price $ 10. 25.
program offered to full part-time employees excluding executive officers directors grant surrender new options two shares three shares exercise surrendered option.
 no options granted employees between cancellation new grant atc mexico stock option plan maintains mexico subsidiary.
 options officers employees directors consultants.
 limits common stock 360 shares capital structure.
 2002 granted options purchase 318 shares common stock to officers employees.
 options issued exercise price $ 10000 per share.
 market independent appraisal.
 fair value options $ 3611 per share black-scholes option pricing model.
 outstanding options exercised in march 2004.
 no options outstanding december 31 2005.
. south stock option plan.
 options officers employees directors consultants.
atc south america plan limits common stock 6144 shares 10. 3%. interest fully-diluted subject adjustment changes capital structure.
 2004 granted options purchase 6024 shares officers employees including.
 gearon hess 6. 7%. 1. 6%. interest.
 options issued exercise price $ 1349 per share.
 fair market value issuance determined board directors independent appraisal.
 fair value options 2004 $ 79 per share black-scholes option pricing model.
.
 interest


management 2019s discussion analysis jpmorgan chase co. annual report treasury cio overview responsible measuring managing liquidity funding interest rate foreign exchange risks executing capital plan.
 risks from four business segments on- off-balance sheet assets liabilities.
-liability objectives high- quality securities longer-term.
 derivatives liability objectives.
.
 portfolio agency mortgage- backed securities.
.
 government securities obligations.
 corporate debt securities.
 december 31  2017 portfolio $ 248. 0 billion average credit rating aa+.
 note 10.
 liquidity funding risk liquidity risk management pages 92.
 interest rate foreign exchange risks market risk management pages 121-128.
 income statement balance sheet data year ended december 31 2016 2015.

 securities gains losses $ -78 $ 132 $ 190
 securities 219345 226892 264758
 47927 51358 50044
 267272 278250 314802
 200247 236670 238704
 50168 49073
 247980 286838 287777
 219345 226892 264758 51358 267272 278250 314802 236670 238704 50168 49073 247980 286838 287777


fourth quarter 2010 schlumberger issued 20ac1. billion. 75%. 75 % guaranteed notes.
 euro notes dollars maturity interest 2. 56% ( 2. 56 %.
 first quarter 2009 schlumberger issued. billion 4. 50%. 50 % guaranteed notes 2014.
 swap euro notes dollars maturity debt interest 4. 95% ( 4. 95 %.
 2008 approved $ 8 billion repurchase program december 31 2011.
 extension repurchase december 31 2013.
 repurchased $ 7. 12 billion shares december 31 2012.
 repurchase 2012 2011 2010 cost average price paid.
 971883.
 2997688.
 1716675.
 cash flow $ 6. 8 billion 2012 $ 6. 1 billion 2011 $ 5.billion 2010.
 schlumberger managed activity venezuela increased delay payment oil customer.
 operates 85 countries.
 five countries accounted 5% receivable balance united states represented 10%.
 dividends 2012 2011 2010 $ 1. 43 billion $. 30 billion $ 1. 04 billion.
 2013 quarterly dividend. 6%. $. 3125.
 2012 10% $. 275.
 2011 dividend 19% $.
 capital expenditures $ 4. 7 billion 2012 $ 4. billion 2011 $ 2. 9 billion 2010.
 expected approach $ 3. 9 billion 2013.
 contributions $ 673 million $ 601 million $ 868 million postretirement benefit plans.
 82% funded december 31 2012.
 87% 2011.
 international benefit pension plans 88% funded.
.
$ 650 million postretirement 2013.
 $ 321 million debentures 2009.
 remaining $ 320 million. debentures 2023 converted. million shares common stock $ 1 million redeemed cash.