operations extended four years unit agreement entergy new york state reliability need indian point generation.
 entergy submitted notice generator deactivation april 30 , 2020 2 april 30 , 2021 3.
 december 2017 nyiso report system reliability need deactivation.
 competitive impacts retirement.
 deadline dispute ferc.
 operations february 2017 entergy filed nrc amendment license renewal application licenses extension april 30, 2024 point 2 april 30 , 2025 3.
 nrc withdraw amendment.
 provisions settlement termination investigations indian point new york state department environmental conservation service health attorney general.
 settlement recognizes right agencies pursue new investigations enforcement.
 obligates entergy establish $ 15 million fund environmental projects community support.
 allocation agreement new york state entergy.
 settlement recognizes york state right annual inspection indian point scope timing determined mutual agreement.
 may 2017 plaintiff filed appeals challenging actions point settlement failed environmental analysis.
 signatories affiliates licenses.
 appeals dismissed november 2017.
 entergy corporation subsidiaries management financial discussion analysis capital structure spending plans sources cash flow activity.
 balanced equity debt.
 increase debt to capital ratio december 31 2017 due increase commercial paper 2017 2016.
 capital 67. 1%. 1 % 64. 8%. 8 %
.
 66. 3%. 3 % 63. 8% 8 %
.
 debt capital excluding 65. 2%. 2 % 61. 8%. 8 %
calculation excludes arkansas louisiana new orleans texas bonds non- recourse.


has contractual guarantees for premium payments insurance companies.
 maximum exposure $ 48 million at december 31 2011.
 commitments to fund limited partnerships.
 commitments expiration dates maximum potential funding $ 64 million at december 31 2011.
 funded $ 15 million.
 additional guarantees indemnifications may be issued.
.
 provided retail brokerage consulting financial advisory services received wholesale brokerage services from controlled by.
 transactions negotiated-length customary terms conditions.
 commissions fee revenue $ 9 million.
.
 two reportable operating segments risk solutions hr solutions.
 unallocated income expenses consolidated financial statements.
 determined resources performance.
 income accounts for intersegment revenue.
 net assets by segment.
advisor insurance broker risks.
 partners solve benefits talent financial challenges business performance designing human capital retirement investment health care compensation talent management strategies.
 revenue millions.
 years 31 2011
 solutions $ 6817 $ 6423 $ 6305
 4501 2111 1267
 -31
 operating segments 11287 8512 7546
 unallocated 2014
 revenue $ 11287 $ 8512 7595


higher net sales offset costs energy wood freight.
 earnings improve reduced manufacturing costs mill opti mization project.
 sales volumes better.
 uncoated paper pulp weaker russian paper.
 price price increases brazil.
 flat.
 wood costs higher supply energy costs mixed.
 acquisition luiz antonio mill earnings.
 pensacola mill container- board reducing.
 production capacity uncoated freesheet paper.
 non-durable processed foods poultry meat agricultural products.
 raw material energy costs manufacturing efficiency product mix.
 net sales 2006 increased 6% 2005 8% 2004.
 profits 82% higher 2005 7% 2004.
improved price realizations 156 million sales volume 29 million mix 21 million reduced downtime 25 million mill performance 43 million offset higher raw material 12 million freight 48 million converting operations 21 other 26 million.
 gain $ 13 million sale property.
 135000 tons downtime 370000 tons 2005 230000 lack-of-order.
.
 profit $ 399
.
 containerboard net sales 2006 $ million 895 million 2005 950 million 2004.
 price first below 2005 improved second higher.
 volumes.
 operating profits 2005 68% 68 % higher 2004.
 reduced lack-of-order downtime performance offset costs freight chemicals energy.
.
 operations net sales $ 2. billion 2006. billion 2005. 2004.
 sales volumes above 2005 demand boxes packaging.
first quarters 2006 margins favorable sales containerboard third quarter.
 profits decreased 72% 2005 86% 2004 higher distribution utility raw material costs inventory.
 european container net sales 2006 $ 1. 0 billion 883 million 2005 865 2004.
 moroccan box plants higher.
 profits up 31% 2005 6% 2004.
 $ 13 million gain sale property spain moroccan acquisition higher energy costs.
 international paper distribution net sales 2006 $ 182 million.
 $ 104 million acquisition.
 small profit 2006 loss 2005.


non investment activity net losses $ 12. 7 million 2009 $ 52. 3 million 2008.
 improvement $ 40 million impairments mutual funds 2009.
 table details mutual fund gains losses two years.
 impairments -91.
 capital gain.
 net gain -4.
 loss.
 lower income $ 16 million money market holdings lower interest rate improvement.
 no impairment investments december 31 2009.
 2009 income taxes pretax income 37. 1% down. 2008 lower. 2010 tax rate.
 reductions tax rate.
.
 investment advisory revenues decreased 6. 3%. $ 118 million to $ 1. 76 billion 2008 assets management decreased $ 16 billion to $ 358. 2 billion.
 average annualized fee rate 49.points 2008. 2007 lower equity valuations income portfolios.
 assets fees net income.
 revenues decreased 5% $ 112 million $ 2. 12 billion.
 expenses $ 1. 27 billion 2008 up 2. 9%. $ 36 million 2007.
 income decreased 147. million. $ 848. million.
 expenses valuations assets revenues 2008 operating margin 40. 1%. from 2007.
 non-operating investment losses $ 52. 3 million $ 80. 4 million 2007.
 non-cash charges $ 91. million.
 income fell 27% $ 180 million 2007.
 diluted earnings per share accounting guidance decreased $ 1. 81. from 2007.
. 21
 advisory revenues.
 mutual funds decreased 8. 5%. $. million $ 1. 24 billion.
mutual fund assets $ 216. billion 2008 down 16. billion 2007.
 31 $ 164. billion down 81. billion 2007.
 inflows $ 3. 9 billion. money. bond. stock.
 $ 4. billion mid-cap redemptions $ 2. 2 billion.
 inflows $ 6. 2 billion retirement funds.
.
 $ 1. 3 billion transferred.
 market valuations assets $ 85. billion.
 revenues decreased $ 3. million $ 522. 2 million.
 assets $ 142. 1 billion. billion 2007.
 declining equity market valuations cash flows.
 inflows institutional investors $ 13. 2 billion $ 1. billion transferred.
 decreases lowered assets $ 55. billion.


operating/performance statistics railroad performance measures table 2010 2009 2008 % change.
 average train speed miles per hour 26. 27. 23. 16% 16 %
 terminal dwell time hours 25. 24. 24. 9 2% 2 %
 rail car inventory 274. 283. 300. 7 6
 ton-miles billions 932. 846. 1020. 10% 10 % 17 %
 revenue ton-miles billions 520. 479. 562. 6 ( 9 % 15 %
 operating ratio 70. 76. 77.
 employees 42884 48242
 customer satisfaction index 89  88  83
 average train speed miles hours.
 maintenance activities weather disruptions higher volume levels 4% decrease average train speed 2010 2009.
 fluid efficient network.
volume network management initiatives productivity improvements 16% 16 % train speed 2009 2008.
 terminal dwell time rail car terminals.
 improves asset utilization service.
 increased 2% 2 % 2010 network plan length efficiency higher terminal dwell time.
 improved slightly 2009 lower volume delivering cars.
 rail inventory.
 lower reduces congestion increases speed dwell time improves utilization.
 decreased 3% 3 % 2010 13% 13 increases carloads.
 maintained more off-line retired old.
 inventory decreased 6% 6 % 2009 16% ( 16 % ) decrease volume.
 stored more cars off-line.
 gross revenue ton-miles calculated miles.
.
 increased 10% 9% 2010 due 13% 13 % increase carloads.
mix changes automotive shipments growth gross revenue carloads.
-miles decreased 17% 17 % 15% 15 % 2009 16% 16 % decrease carloads.
 30% 2009 gross revenue.
.
 improved. 70. 6%. 2010. 1%. 2009.
 volume increases core pricing gains productivity initiatives higher fuel prices.
 16% 16 % volume decline.
 levels down 1% 1 % 2010 13% 13 % increase.
 leveraged additional volumes network efficiencies productivity initiatives.
 managed growth full-time-equivalent train engine force levels less than half carload growth 2010.


shareowner return performance graph material future filing securities act 1933 exchange act 1934.
 five year comparison shareowners 2019 returns class b common stock standard 500 index dow jones transportation average.
 quarterly stock price reinvested dividends $ 100 invested december 31 2010 standard 500 index dow jones transportation average class b common stock.
/31/2010
 united parcel service. $ 100. $ 103. 107. 158. 171. 160.
 standard poor 500 index. 102. 118. 156. 178. $ 180.
 dow jones transportation average. 107. 151. $ 190. 158.


purchases equity securities table purchases common stock fourth quarter 2011.
 shares purchased average price paid share maximum dollar value.
 average price dollar value
 1 2013 31 3228557 $. 3227800 $
 1813994 $. 1618110
 475685 $ 64.
 5518236 $.
 may 2010 approved $ 3. 5 billion share repurchase program.
 fourth quarter 2011.
 repurchased. million shares $ 3. 5 billion  $ 71. 18 per share.
 fourth quarter repurchased 672326 shares employees income tax withholdings restricted stock vesting option exercises.
 repurchases addition $ 3. 5 billion repurchase program.
devon energy corporation incentive savings plan employees purchase shares common stock devon stock fund administered fidelity management trust company.
 purchased 45000 shares stock 2011-prevailing stock prices.
 acquired shares open-market purchases.
 filed registration statement form s-8 january 26 , 2012 offers sales interests plan stock fund shares purchased.
 devon canada corporation savings plan canadian employees purchase shares stock canadian plan administered sun life assurance company canada.
 purchased 9000 shares 2011 prices.
 acquired shares open-market purchases.
 shares offered sold exemptions for offers sales securities outside.


pricing loans.
 valuation assumptions inputs.
 adjustments uncertainties market conditions liquidity.
 credit risk valuation rates return loans.
 classify portfolio level 3.
 equity investments valuation requires management judgment quoted market prices lack liquidity long-term nature.
 carrying values interests reflect exit price based techniques publicly traded price adjusted earnings independent appraisals financing sale transactions pricing financing.
 2013 fair value measurements disclosures investments net asset value share.
 value indirect investments private equity net asset value financial statements.
 adjustments value change value.
 investments classified level 3.
 resale agreements structured resale agreements economically hedged financial derivatives fair value.
 determined model market data interest rates.
observable market inputs external sources yield curves volatility market-related data.
 instruments classified level 2.
 blackrock series c preferred stock february 2009 2. 9 million shares fair value.
 hedges blackrock ltip liability.
 fair value determined third-party modeling approach includes observable unobservable inputs.
 considers expectations default/liquidation liquidity discounts inability sell security price.
 security classified level 3.
 assets values determined pricing models discounted cash flow methodologies significant model assumption input unobservable.
 assets liabilities assets consolidated.
 assets liabilities consolidated
 december 31 2009 $ 14151 $ 295  22% ( 22 % ) 6% ( 6 % ) 5% ( 5 % )
31 2008 7012 19% 19 % < 1% 2% 2 %
 securities transferred 3 exceeded $ 4. 4 billion.
 securities 3 2009 2008 non residential mortgage asset volume decreased.
 no issues.
 valuation methodology 2009.
 level 3 assets commercial mortgage loans equity securities auction rate corporate debt private equity investments residential mortgage servicing rights.


purchase asset capitalize costs use.
 assets self-constructed.
 large capital expenditures expansion replacement performed employees.
 13% 13 % full-time employees construction capital assets.
 capital projects capitalized.
 material labor work equipment.
 indirect costs capitalized relate construction.
 allocated statistical bases.
 capitalization consistent with fasb statement.
 real estate.
 general administrative expenditures expensed.
 repairs maintenance useful life safety efficiency capitalized.
 assets capital leases recorded lower net present value minimum lease payments fair value asset.
 amortization expense computed straight-line method estimated useful lives.
.
 accounts payable current liabilities.
.
.
.
 accounts payable
 wages vacation
 casualty costs
 income taxes
 dividends interest
 equipment rents
546 675
 accounts payable current liabilities $ 2560 $ 2902
.
 fair value measurements first quarter 2008 adopted statement.
 157.
 framework expanded disclosures.
 impact financial position results.
 applies assets liabilities.
 enables reader assess inputs hierarchy ranking quality reliability information.
 asset liability categories 1 quoted market prices.
 2 observable market inputs corroborated.
 3 unobservable inputs not.


goodwill represents excess solexa purchase price over assets acquired less liabilities assumed.
 believes acquisition solexa benefits increased market presence opportunities.
 combination growth revenue earnings stockholder return.
 solexa technology complementary to portfolio products services capabilities customers develop additional technologies.
 integrating solexa capabilities emerging biomarker research development in-vitro molecular diag- nostic markets.
 revenue from products shipped acquisition first quarter 2007.
 operating efficiencies.
 combination economies of scale cost savings.
 support goodwill purchase price solexa acquired assets in-process research development.
 unaudited information shows results operations reporting periods year ended december 30 31.
 2006
 revenue $ 366854 $ 187103
 net income loss $ 17388 -38957
 loss per share.
.
pro forma results comparative not indicative actual.
 exclude $ 303. 4 million non-cash ipr&d charge quarter 2007.
 november 12 2006 securities purchase agreement invested $ 50 million 5154639 shares.
 investment valued $ 67. 8 million december 31 2006 market value $ 13. 15 per share.
 investment eliminated merger january 26 2007.
.
 financial statements 2014


container acquisition october 2017 acquired assets sacramento container corporation interests northern sheets central california sheets purchase $ 274 million working capital adjustments.
 cash.
 assets full-line corrugated products sheet feeder operations mcclellan california kingsburg.
 sacramento container packaging solutions agricultural market.
 financial results packaging segment.
 accounted asc 805.
 purchase price allocated tangible intangible assets acquired liabilities assumed values.
 12/31/17 allocation
 goodwill $ 151.
 intangible assets.
 property equipment.
.
 273.
 second quarter 30 2018 $ 5. million net adjustment intangible assets.
 decrease intangible assets offset goodwill.
 excess purchase price fair value net assets acquired.
goodwill sacramento container regional synergies containerboard integration.
 goodwill deductible tax.
 intangible assets relationships 9. 6 years.
 property plant equipment one 13 years.


-balance sheet securitizations company.
 qualify for sales assets remain on balance sheet.
 table presents carrying amounts classification consolidated assets liabilities transferred from consumer credit card student loan mortgage auto businesses secured borrowings 31.
 2008 2007
 cash.
 available-for-sale securities.
 loans.
 loan losses.
 assets $ 7. $
 long-term debt $ 6.
 liabilities.
 liabilities $ 6.
 assets restricted from sold pledged as collateral.
 cash flows pay liabilities non-recourse to assets.
 citi-administered asset-backed commercial paper conduits active administrator multi paper conduits service provider.
 low-cost funding.
 purchase third-party investors.
 purchase assets originated company.
funding conduit facilitated by liquidity credit enhancements by company third parties.
 administrator responsible for assets decisions funding tenor commercial paper monitoring quality performance operations cash flows.
 company earns structuring fees administration fee equal to income liquidity fees after.
 administration fee stable risks rewards passed back to customers income costs fees stable.
 conduits invest in liquid securities rated third parties.
 assets privately negotiated structured.
 yield tied to commercial paper interest rate risk to client.
 asset structured with transaction-specific credit enhancement features over- collateralization cash excess spread collateral accounts direct recourse guarantees.
 credit rating or above risk.
 funding short- term commercial paper.
 average life commercial paper 37 days.
conduits issued loss notes equity $ 80 million tenors six months to seven years.
 primary credit enhancement transaction-specific credit enhancement.
 two additional forms credit enhancement protect commercial paper investors from defaulting assets.
 subordinate loss notes absorb credit losses full amount.
 majority losses single investor primary beneficiary under 46.
 each conduit obtained letter of credit company 8-10% assets.
 total $ 5. 8 billion included maximum exposure to loss.
 defaulted assets losses allocated subordinate loss note holders company commercial paper investors provides liquidity agreements funding market disruption.
 each asset supported transaction-specific liquidity facility asset purchase agreement.
 non-defaulted receivables.
 subject increased pricing.
 credit support purchase defaulted assets credit risk.
 covers all assets 2019s maximum exposure to loss.
company provides liquidity short-term lending commitments.
 lend disruption commercial paper market conditions.
 total exposure $ 11. 3 billion 2019s maximum exposure loss.
 receives fees fair market.


third parties.
 issued guar antees $ 171 million debt obligations unconsolidated affiliates.
 off-balance sheet arrangements limited future payments noncancelable operating leases $ 408 million invested four variable interest entities.
 primary beneficiary general mills capital.
 subsidiary note eight.
 interest contract manufacturer geneva.
 not consolidated material results financial condition liquidity.
 property equipment $ 50 million long debt $ 50 million.
 not pb remaining two vies.
 exposure loss limited $ 150 million minority interest gm capital $ 6 million equity investments.
 future estimated cash payments obligations.
 purchase obligations raw mate packaging marketing commit.
 net fair value interest rate equity swaps $ 159 million may.
 impact.
long-term obligations income taxes accrued compensation benefits miscella neous liabilities.
 estimate timing.
 statutory funding requirements defined-benefit retirement benefit plans.
 information contributions 2007 note thirteen financial statements pages 47 50.
 due fiscal year-09.
 long-term debt $ 4546 $ 2131 $ 971 1389
 accrued interest 152
 operating leases
 purchaseobligations 2351 2068
 $ 7457 $ 4443 $ 1257 $ 1538
 significant accounting estimates note one financial statements pages 35 37.
 financial condition results.
 trade consumer promotion activities goodwill asset impairments income taxes pension postretirement benefits.
 net costs.
consumer coupon costs based on estimated redemption value determined by historical patterns market conditions activity.
 trade promotion costs include payments to customers merchandising activities discounts distribution new products.
 cost recognized as revenue precedes cash expenditure.
 requires estimation customer participation performance.
 estimates based on sales timing costs.
 differences between estimated expenses costs insignificant recognized as change management estimate.
 accrued trade consumer promotion liability $ 339 million may 28 2006 $ 283 million may 29 2005.
 unit volume last week quarter higher than average.
 final week two four shipments increased promotional activity.
 activity includes promotions inventory marketing events demand interim unit volume targets.
 more product sales level could.


consolidated financial statements guidelines tax position.
 $ 1. 5 million increase unrecognized income tax benefits $ 1. million reduction 2007 retained earnings $. million additional paid capital.
 liabilities unrecognized income tax benefits $ 3. 8 million accrued interest penalties $. million.
 reconciliation tax benefits.
 balance june 1 2007 $ 3760
 additions 93
 50
 reductions
 settlements
 balance may 31 2008 $ 3713
 unrecognized tax benefits tax rate $ 3. 7 million.
 accrued interest.
 2008 recorded $. 3 million accrued interest penalty expense.
 anticipate decrease $ 1. million foreign operations 12 months expiration statute limitations.
 file income tax returns united states federal foreign.
subject authorities including united states canada.
 no longer income tax 31 2003.
 under audit internal revenue service united states 2004 to 2005 tax years.
 fiscal 2009.
 2007 board approved share repurchase program purchase $ 100 million global payments 2019 stock opportunities.
 repurchased 2. 3 million shares common stock fiscal 2008 $ 87. 0 million average $ 37. 85 per share.
 may $ 13. million remaining repurchase authorization.
 no repurchased 2007.
 four employee compensation plans.
 expense recognized straight-line.
 amortized.
 no share compensation capitalized fiscal 2008 2007 2006.


table summarizes future cash payments contractual obligations.
 2020 2021 2023 2025
 long-term debt $ 13093. 1396. 3338. 2810. 5548.
 92.
 operating leases 482. 120. 186. 112. 63.
 capital leases.
 obligations 2961. 2605. 321.
 obligations 16630. 4214. 3847. 2950. 5618.
 long-term obligations 1302.
 obligations $ 17932. 4214. 3847. 2950. 5618.
 expected cash payments long-term debt include. million capital leases 72. million unamortized debt costs premiums discounts fair value adjustments.
 minimum rental commitments non-cancelable.
majority purchase obligations raw material packaging consumer marketing.
 terms quantities pricing structure timing.
 cancelable without penalty short notice 30 days.
 excluded.
 fair value foreign exchange equity commodity grain derivative contracts was $ 17. 3 million may 26 2019.
 future impact.
 long-term obligations accrued compensation benefits underfunded defined benefit pension postretirement plans miscellaneous liabilities.
 expect pay $ 20 million benefits unfunded postemployment benefit plans $ 18 million deferred compensation fiscal 2020.
 unable estimate beyond 2020.
 total liability uncertain tax positions accrued interest penalties $ 165. 1 million.
 estimates note 2 financial statements.
 financial condition results.
estimates include promotional expenditures valuation intangible redeemable interest stock compensation income taxes defined benefit pension postretirement postemployment plans.
 net variable promotion coupon redemption returns unsalable discounts.
 promotions recorded.
 differences expenses recognized.
 accrued trade liabilities $ 484 million may 26 2019 $ 500 million may 27 2018.
 estimates inaccurate adjustments.


tower corporation subsidiaries financial statements revenue collectability amounts billed recognized.
 credit risk business industry conditions.
 recognition deferred until uncertainty resolved.
 amounts uncollectible charged bad debt expense.
 accounts receivable net allowances doubtful accounts losses inability payments reserves.
 allowances estimated based payment patterns days due collection history changes economic conditions bankruptcy liquidation.
 receivables written-off against allowances uncollectible.
 determination includes analysis conditions.
 changes allowances years december 31.
 2008
 balance january 1 $ 28520 $ 11482 $ 8850
 increases 16219 26771 12059
 recoveries
 balance december 31, $ 22505 $ 28520 $ 11482
 largest international customer iusacell.
.
.
iusacell 4% company revenue year december 31 2010.
.
 dollar debt two legal entities filed pre-packaged concurso mercantil.
 bankruptcy law majority financial creditors december 2010.
 iusacell receivable net related assets long-term $ 19. 7 million and $ 51. 2 million .
 changes effective january 1 functional currency subsidiary brazil brazilian real.
 assets liabilities translated into.
 dollars exchange rate reporting period.
 revenues expenses translated monthly exchange rates cumulative translation effect included in stockholders equity.
 change currency.
 real net value non-monetary assets liabilities.
 impact $ 39. 8 million offsetting increase income loss.
 renegotiation agreements iusacell converting contractual obligations from.
mexican pesos company april 1 2010 currency subsidiaries mexican peso.
 assets liabilities translated.
 dollars reporting period.
 revenues expenses translated monthly rates cumulative translation 2019 equity.


goldman sachs group.
 subsidiaries financial statements values exclude counterparty netting collateral netting not representative firm 2019s exposure.
 counterparty netting reflected level receivable payable balances.
 cross-level netting.
 derivative assets positive liabilities negative.
 table level 3 assets liabilities ranges averages medians level 3 derivatives.
.
 interest rates net $ -410 ( $ -381
 correlation 10 % to 95% 95 % 71%/79% % 86% 86 %/60%
 volatility bps 31 to 150 84/78 to 151 84/57
 credit net $ 1505 $ 2504
 correlation 28% ( 28 % to 84% 84 61%/60% 35% ( 35 % to 91% ( 91 % ) 65%/68%
credit spreads bps 1 to 633 69/42 to 993 122/73
 credit points 0 to 97 42/38 to 100 43/35
 recovery rates 22% 22 % to 73% 73 % 1% 1 % to 97% 58%
 currencies -181
 correlation 49% 49 % to 72% 72 % 25% 25 % to 70% 70 % 50%/55%
 commodities $ 47 73
 volatility 9 % to 79% 79 % 24%/24% 13% 13 % to 68% 68 % 33%/33%
 natural gas spread.
 oil spread.
 equities net
 correlation 36 % to 94% 94 50%/52% 39 % to 88% 88 %
 volatility 4% 4 to 72% 72 % 5% 5 % to 72% 72 %
table 2030 assets positive liabilities negative.
 ranges represent unobservable inputs valuation.
 averages arithmetic average not weighted by fair value financial instruments.
 average greater median below average.
 difference credit oil spread lower end range.
 ranges averages medians not representative fair value derivative.
 highest correlation interest rate not.
 ranges inputs represent uncertainty fair value level 3 derivatives.
 interest rates currencies equities credit commodities.
 fair value determined multiple valuation techniques.
 option pricing.
 level 3 balance encompasses.
 2030 correlation currencies equities cross- product correlation.
 natural gas spread million thermal units natural gas.
 oil spread per barrel oil refined products.
 firm 2019s level 3 derivative instruments 2030 correlation.
ranges correlation cover underliers product type. index across types. interest rate currency regions.
 cross-product correlation inputs complex instruments lower type.
 volatility.
 cover underliers markets maturities strike prices.
 equity indices lower single stocks.
 credit spreads upfront credit points recovery rates.
 cover underliers regions sectors maturities credit qualities.
 broad range ranges unobservable inputs.
 form


2009 2010 2014
 state street corporation 100 107 114 120 190
 s&p 500 index 132 135 157
 s&p financial index 135
 kbw bank index 152 117 153


adobe inc.
 financial statements stock options 2003 plan options employees executive officers consultants non directors.
 until termination board or shares issued restrictions lapsed.
 option vesting periods four years seven years date grant.
 eliminated stock option grants employees non directors issue.
 programs 2018 2017 2016 stockholder value award potential talented individuals.
 executive compensation committee approves terms award calculation methodology.
 shares earned stockholder return three-year period.
 awards awarded vest committee certification achievement three-year anniversary.
 participants receive 200% target shares.
 2018 approved 2018 performance share program terms similar prior.
 november 30  2018 shares awarded 2018 2017 2016 yet achieved.
 options vesting restricted stock units performance shares purchases treasury stock.
 common stock.
impact dilution stock options stock units performance shares instituted stock repurchase program.
 note 12.
 valuation stock-based compensation cost measured grant date fair value.
 awards valued monte carlo simulation model.
 fixed amortized remaining.
 black-scholes option pricing model fair value.
 stock price variables.
 stock price volatility stock option behaviors risk-free interest rate expected dividends.
 term average purchase periods.
 assumptions stock purchase rights.
 expected life years. -.
 volatility 26% 26 % - 29% ( 29 % ) 22% 27% 27 %
 risk free interest rate. 54%. 54 %. 52%. %. 62%. 62 %. 41%. 41 %. 06%


jpmorgan chase. annual report 173 trading assets liabilities.
 december 31 millions 2009 2008 2007
 assets 2013 debt equity instruments $ 318063 $ 384102 $ 381415
 2013 derivative receivables 110457 121417 65439
 liabilities 2013 debt equityinstruments $ 60224 $ 78841 $ 94737
 2013 derivative payables 77901 93200 65198
 securities sold not.
 2013 fair value option alternative measurement financial assets liabilities unrecognized firm commitments loan com mitments.
 mitigate income volatility complexities accounting models. reflect instruments.
 securities financing arrangements embedded derivative maturity one year.
 loans securitization activity bifurcation accounting.
 structured notes client-driven activities.
.tax credits equity investments washington.
 earnings fair value option $ 199 million.


bhge 2017 form 10-k liquidity capital resources objective maintain liquidity financial resources flexibility business.
 december 31 2017 cash $ 7. 0 billion compared $ 981 million 2016.
 $ 997 million.
 $ 3. 2 billion foreign subsidiaries compared $ 878 million 2016.
 portion cash reinvested non.
 business operations.
 intent use cash fund operations foreign subsidiaries changed indefinite reinvestment decision.
 tax reform reassess 2018.
. taxes.
 repatriations earnings free.
 federal tax incur.
 july 3 2017 bhge llc five-year $ 3 billion unsecured revolving credit facility banks maturing july 2022.
 no borrowings.
 november 3 2017 commercial paper program issue $ 3 billion commercial paper maturities 397 days.
 no borrowings.
maximum borrowing under 2017 credit agreement commercial paper program $ 3 billion.
 november 6 2017 board authorized bhge llc repurchase $ 3 billion common units.
 proceeds shares open market privately negotiated transactions.
 december 15 2017 filed shelf registration statement s-3 sell $ 3 billion debt securities determined.
.
 specific terms in supplemental filings.
 registration statement 2020.
 december 31 2017 used cash activities working capital restructuring costs capital expenditures business acquisitions dividends share repurchases.
 cash credit facility provide liquidity global cash needs.
 december 31.
 2016 2015
 operating activities -799
 investing -4130
 financing
 largest source cash payments from customers collecting cash product services sales.
cash suppliers employees tax authorities material services.


entergy subsidiaries pollution environmental secured mortgage bonds.
 implicit 4. 8%.
 nuclear waste policy act 1982 subsidiaries contracts spent nuclear fuel disposal.
 one-time fee generation 7 1983.
 arkansas electric power nuclear fuel one fee accrued interest long-term debt.
 note 10 waterford 3 grand gulf lease obligations.
 lease obligations $ 109 million louisiana $ 34 million long-term doe obligations $ 181 million note payable nypa $ 35 million debt due one year.
 values level 2 hierarchy based benchmark yields.
 long-term debt maturities december 31 2015 five years.
 204079
 766451
 822690
 entergy purchased fitzpatrick indian point 3 power plants.
entergy issued notes nypa seven installments $ 108 million one year eight installments $ 20 million eight years.
 notes implicit interest rate 4. 8%.
 purchase indian point 2 2001 liable additional $ 10 million per year 10 years september 2003.
 liability recorded 2001.
 liability net present value payments year fitzpatrick indian point 3 power plants beyond nrc license expiration date.
 shutdown fitzpatrick reduced liability $ 26. 4 million 2015.
 utility companies collateral.
 entergy louisiana mississippi texas system energy long financing ferc october 2017.
 arkansas december 2018.
 new orleans city council july 2016.
 supply system energy capital


graph compares return lilly stock standard 500 stock index peer group 2014 2018.
 assumes december 31 2013 invested $ 100 lilly stock s&p 500 index peer groups common stock.
 measures shareholder return price dividends.
 dividends reinvested stock.
 $ 100 invested 2013 five-year return lilly s&p 500 index peer group.
 100.
 139. 114. 113.
 175. 115
 157.
 185. 157.
 259. 136 150.
 peer group industry index.
 companies biotech industries. amgen. astrazeneca baxter. biogen. bristol-myers squibb celgene sciences. glaxosmithkline johnson medtronic merck. novartis. pfizer. roche holdings sanofi shire.


estimate future cash flows beyond 12 months uncertainties tax audit outcomes.
 remaining unrecognized tax liability classified other liabilities.
 accrued interest penalties.
 2017 recognized $ 5. 6 million penalties $ 23. 1 million penalties may 28 2017.
 2016 benefit $ 2. 7 million $ 32. 1 million penalties may 29.
.
 leases warehouse space equipment.
 rent expense leases $ 188. million 2017 $ 189. 1 million 2016 $ 193. million 2015.
 leases require property taxes insurance maintenance costs.
 contingent escalation rent sublease income insignificant.
 noncancelable future lease commitments capital.
.
.
.
.
.
.
 noncancelable future lease commitments.
.
value obligations under capital leases.
 depreciation on leases recorded as expense in results operations.
 28 issued guarantees $ 504. 7 million consolidated subsidiaries $ 165. 3 million non-consolidated affiliates.
 off-balance sheet arrangements limited future payments under non-cancelable operating leases totaled $ 500. 7 million.
.
 consumer foods industry.
 new global orga structure leadership scale operational agility.
 results four operating segments north america retail. percent convenience stores foodservice. australia. percent asia latin america. percent
 restated net sales by seg segment operating profit new operating segments.
 changes no effect on consolidated net sales profit earnings per share.
 north america retail segment.
.
.
.
 combined into one.
.
convenience stores foodservice unchanged.
 europe australia.
 asia latin america.
 chief maker north america retail convenience foodservice australia asia latin.
 north america retail grocery stores mass merchandisers membership stores natural food chains discount chains e-commerce providers.
 84 mills


systems notes financial statements foreign currency translation translate assets liabilities foreign subsidiaries exchange rates balance sheet.
 translate revenue expenses monthly exchange rates.
 include net translation adjustments stockholders 2019 equity.
 property equipment record cost less depreciation amortization.
 depreciated straight useful lives 1 to 5 years computers equipment 1 to 6 years furniture fixtures 35 years buildings.
 leasehold improvements amortized lease term.
 goodwill intangibles review goodwill impairment annually.
 annual impairment test 2009 no impairment.
 goodwill segments.
 evaluate fair value carrying value.
 market approach traded companies income approach future cash flows.
 revenue operating costs.
 amortize intangible assets estimated useful lives review impairment.
 monitor events.
 assess recoverability.
future cash flows less than carrying recognize impairment loss excess carrying amount over fair value.
 intangible asset impairment charges in 2009 2008 2007.
 intangible assets amortized over estimated lives 1 to 13 years.
 amortization based economic benefits.
 average useful life.
 purchased technology
 localization
 trademarks
 customer contracts relationships
 intangibles
 software development costs begins technological feasibility working prototype release.
 amortization begins software ready.
 costs between.
 from licensing software consulting hosting services maintenance support.
 revenue evidence arrangement delivered fee fixed collection probable.


aeronautics segment includes fewer larger sales results.
 discussion focuses on lines programs.
 financial information consistent with note 5 financial statements.
 programs classified by.
 government.
 operating results included in results oversight controls.
 research design development manufacture advanced military aircraft combat mobility unmanned.
 combat aircraft programs include f-35 lightning f-16 falcon f-22 raptor.
 air mobility programs include c-130j super hercules c-5m super galaxy.
 provides logistics support sustainment upgrade services.
 2019 operating results 2010 2009 2008.
 net sales $ 13235
 operating profit 1502
 margin 11. 3%.
 backlog-end
 net sales for aeronautics increased 8% in 2010 2009.
 all three lines business.
$ 800 million increase air mobility higher volume c-130 c-5 reliability enhancement program.
 25 c-130j deliveries 2010 16 2009.
 $ 179 million increase higher volume f-35 contracts f-16.
 20 f-16 deliveries 2010 31 2009.
 $ 55 million increase higher volume p-3 advanced development.
 net sales increased 6% 2009.
.
 increase $ 296 million higher volume c-130.
 16 c-130j deliveries 2009 12 2008.
 combat aircraft sales increased $ 316 million higher volume f-35 f-16.
 31 f-16 deliveries 2009 28 2008.
 $ 116 million increase higher volume p-3 advanced development.
 operating profit decreased 5% 2010.
 decline offset aeronautics.
 $ 149 million decrease lower volume performance adjustments f-22 f-35.
decreases profit higher volume performance f-35 contracts.
 $ 35 million increase programs higher volume performance p-3 advanced development favorable performance adjustments sustainment.
 $ 19 million increase mobility profit higher volume improved performance c-130j decrease.
 remaining profit increase other income.
 aeronautics operating margins decreased.
 reflects life cycles.
 more f-35 less f-22 f-16.
 lower profits.
 net sales increased 2010 operating profit decreased margins declined.


humana inc.
 financial statements 2014.
 concentra. health care company addison texas $ 804. million.
 delivers occupational medicine urgent care physical therapy wellness services medical centers facilities.
 acquisition primary care health wellness platform growth management care.
 preliminary values assets acquired liabilities assumed.
 cash equivalents 21317
 receivables 108571
 current assets 20589
 property equipment 131837
 goodwill 531372
 intangible assets 188000
 long-term assets 12935
 acquired 1014621
 liabilities
 assets acquired 804719
 intangible assets customer useful life 13. years.
 $ 57. million acquired goodwill deductible tax.
 purchase price allocation preliminary valuation analyses.
 purchase agreement provisions future consideration working capital.
payments working capital recorded goodwill.
 results operations financial condition included consolidated statements balance acquisition date.
 recognized $ 14. 9 million acquisition-related costs banker professional fees.
 1 2009 material results.
 october 31 2008 acquired companies.
 $ 291. million $ 34. 9 million 2010 purchase price contingency.
 acquisition increased commercial medicare presence eastern tennessee.
 fair value assets.
 decrease $ 27. million fair value contracts.
 adjustment goodwill deferred income taxes.


performance retention awards 2009.
.
 nonvested january 1 2009 873 $ 50. 70
 granted 47. 28
 vested. 23
 forfeited 53.
 nonvested december 31 2009 1060 $.
 $ 22 million unrecognized compensation expense performance retention awards. 3 years.
 subject levels grants.
.
 defined benefit retirement income non-union employees.
 years service highest compensation reductions early retirements.
 defined contribution medical life insurance benefits retirees.
 funded january 1 2010 medicare-eligible retirees retiree medical program contribution health reimbursement account-of-pocket medical expenses.
 amendment projected benefit obligation december 31 2009.
 overfunded underfunded pension plans.
funded status pbo fair value assets.
 benefits salary increases.
 pbo equal accumulated benefit obligation affected salary increases.
 assets measured fair value.
 december 31 date retirement.


logistics subsidiaries crew lodging slower network.
 consulting fees contract expenses maintenance.
 locomotive freight car material expenses increased volumes stored equipment slower network.
 purchased services increased 10% logistics management fees locomotive overhauls repairs.
 road property ties ballast track material.
 depreciation 7%.
 higher depreciable asset base capital spending.
 depreciation 1% 1 %.
 longer service lives capital spending.
 locomotive leases.
 intermodal volumes longer cycle times increased freight car rental expense.
 lower equipment leases rental expense purchase options.
 container costs logistics management automotive shipments lower cycle times $ 51 million increase freight car rental expense.
 lower locomotive freight car lease expenses higher rental.
2013 expenses include taxes freight equipment damage utilities insurance personal injury environmental employee travel telephone cellular software debt.
 higher property taxes personal injury offset environmental expense damaged freight costs 2014.
 costs.
 safety performance lower liability personal injury reduced expense.
 non-operating items 2014 2013 2012 % change.
 income $ 151 $ 128 $ 108 18% 18 % 19% ( 19 %
 interest expense -561
 income taxes 19% 19 % 12% 12 %
 increased higher gains real estate sales permanent easement.
 offset by higher environmental costs non-operating property lower lease income $ 17 million settlement land lease contract.
 increased higher gains real estate lease income.
 offset by interest tax refund 2012.


intangible assets amortized over estimated lives 1 to 13 years table.
 amortization based on economic benefits consumed.
 average useful life years.
 purchased technology
 localization
 trademarks
 customer contracts relationships
 other intangibles
 software development costs begins technological feasibility completion working prototype no critical bugs release candidate.
 amortization begins software ready for use.
 development costs between availability.
 derived from licensing software consulting maintenance support.
 recognize revenue aicpa statement position 97-2 revenue recognition 201d amendments evidence arrangement fee fixed collection probable.
 multiple element arrangements software consulting.
 allocate defer revenue for undelivered items difference arrangement fee deferred as license revenue.
 fair value based on price sold.
determine fair value element sales renewal rate initial software license arrangement.
 undelivered revenue deferred until all elements delivered.
 exception undelivered element maintenance support entire arrangement fee recognized performance period.
 recognize upon shipment criteria met.
 desktop revenue distributors subject limited rights return rebates price protection.
 direct oem sales subject return.
 reduce revenue estimated future returns price protection rebates.
 estimates adjusted historical rates inventory levels.
 record estimated costs free technical phone support.
 recognize oem licensing revenue royalties.
 estimate royalty


marathon oil corporation financial statements changes goodwill years 31 2007 2008 millions e&p osm rm&t total.
 balance december 31 2006 $ 519 2013 $ 879 $ 1398
 acquired 1437
 adjusted -7 ( 7
 balance december 31 2007 590 1437 872 2899
 adjusted -17 -35 ( 35
 impaired
 disposed -5 ( 5
 balance december 31 2008 $ 568 2013 $ 879  $ 1447
 adjustments income tax royalty adjustments.
 goodwill allocated norwegian outside-operated properties sold 2008.
.
 value.
 price sell asset transfer liability transaction.
.
 approaches market income cost approach.
 market approach transactions.
income approach value future amounts into present value market expectations.
 cost approach based on service capacity asset.
 current replacement cost.
 assumes fair value substitute asset for obsolescence.
.
 prescribe valuation technique.
.
 establishes fair value hierarchy inputs.
 inputs refer to assumptions pricing.
 level 1 inputs highest 3 lowest.
 three levels fair value hierarchy.
 level 1 2013 observable inputs unadjusted quoted prices for identical assets liabilities in active markets.
.
 level 2 2013 observable market-based inputs inputs corroborated by market data.
.
 level 3 2013 unobservable inputs not corroborated methodologies.
 market or income approach for recurring fair value measurements best information.
 techniques observable inputs favored.
assets liabilities classified lowest priority significant fair value measurement.
 assessment requires judgment affect placement fair value hierarchy.


systems incorporated financial statements.
 restructuring charges table activity december 3 1999 accrued balance november 27 cash charges payments adjustments.
 balance november
 restructurings
 $. 8 million accrued restructuring costs fiscal 1998 restructuring program.
. 3 million severance charges. 1 million lease termination costs. 4 million canceled contracts.
 majority paid first quarter 2000.
 cash payments twelve months december 3 1999 restructuring. 7 million. 6 million. 4 million severance lease termination costs canceled contracts.
 adjustments 1998 restructuring. 4 million lease termination. 3 other charges.
 balance lease termination costs restructuring programs 1994 1995.
 payments twelve months december 3 1999 $ 1. 5 million.
third fourth quarters 1999 recorded adjustments $ 1. 2 million.
 adjustment $ 0. 6 million lease.
 $. 6 million reduced expired lease termination costs merger.
 december 3 balances frame mergers.
 third fourth quarters recorded $ 8. 4 million.
 $ 2. million cancellation contract $ 2. accelerated depreciation restructuring.
 incurred nonrecurring compensation charge $ 2. 6 million terminated employee consulting fees $ 1. 6 million.


26 2019 expect pay $ 2. million unrecognized tax benefit liabilities accrued interest 12 months.
 estimate future cash flows beyond 12 tax audit outcomes.
 remaining unrecognized tax liability other liabilities.
 accrued interest penalties.
 2019 recognized $. million net interest penalties $ 26. million accrued interest penalties.
 2018 recognized $ 3. million penalties $ 27. million accrued interest penalties.
.
 leases warehouse space equipment.
 rent expense $ 184. million 2019 189. million 2018 188. million 2017.
 require property taxes insurance maintenance costs.
 sublease income insignificant.
 noncancelable future lease commitments.
.
.
.
.
.
.
 noncancelable future lease commitments..
 obligations.
 depreciation leases expense.
 issued guarantees $ 681. 6 million consolidated subsidiaries $ 133. 9 million non-consolidated affiliates.
 off-balance sheet arrangements future payments non-cancelable leases $ 482. 6 million.
.
 packaged foods industry.
 north america retail convenience stores foodservice australia asia latin america pet.
 grocery stores mass merchandisers natural food chains e-commerce.
 product categories ready-to-eat cereals yogurt soup meal kits dough dessert baking mixes pizza grain fruit savory snacks organic products nutrition bars salty.


increase level 3 borrowings debt $ 2. 8 billion $ 7. 3 billion from transfers level 2 positions new issuances fair value accounting.
 assets liabilities not included tables.
 assets cost written down fair value.
 loans cost fair value below cost.
 recorded goodwill impairment charges $ 9. 6 billion december 31 2008.
 primary cause weak industry outlook operating losses.
 decline stock price market capitalization citigroup.
 note 19.
 analysis assets old lane multi hedge fund.
 pre-tax write-down $ 202 million unamortized recorded.
 level 3 input factors discounted cash flow.
 quarter impairment analysis nikko asset management fund contracts.
 impairment loss $ 937 million pre-tax recorded.
fair value determined income approach key drivers future expectations business 3 factors.
 fair value loans locom quoted secondary-market prices.
 loans classified level 2 fair-value hierarchy activity frequency quotes.
 no quoted price fair value determined quoted prices similar adjusted attributes.
 table presents loans held-for-sale locom december 31 2008 2007 billions.
 cost fair value 2
 2008.
 2007.
 loans held-for-sale locom 2008 declined sold reclassified held-for-investment.


2006 fasb issued.
 defined benefit pension postretirement plans amendment statements.
 87 88 106 132. eliminated pension liability adjustment.
 underfunded overfunded defined benefit plan financial.
 2006.
 recognized after-tax decrease income $. 187 billion $ 513 million.
 pension benefit plans 218 million postretirement health care life insurance benefit plan.
.
 reclassification adjustments avoid double counting income.
 2007 $ 198 million pre-tax $ 123 million after-tax reclassified pension postretirement expense.
 amortization transition obligation prior service cost net actuarial gain loss.
 reclassification adjustments.
 tax provision translation foreign currency financial statements.
 dollars.
.
 supplemental cash flow information.
 income tax payments
 interest payments
 capitalized interest
consolidated cash flows exclude acquisitions divestitures exchange rate.
 2007 2006 3m restructuring 2005 non-cash impact fin 47 $ 35 million.
 investing financing non-cash 2007 3m purchased assets diamond productions.
 150 thousand shares common stock market value $ 13 million.
 liabilities acquisitions.


table presents results institutional client services.
 millions 2011 2010
 fixed income currency commodities 9914 9018 13707
 equities
 commissions fees
 securities services
 equities
 net revenues 18124 17280
 expenses
 pre-tax earnings $ 5644 $ 4443 $ 6802
.
 revenues reinsurance $ 1. billion $ million $ 827 million 2010.
.
 revenues institutional services $. billion 2012 5% higher 2011.
 fixed income currency commodities $. billion higher 2011.
 revenues mortgages higher.
 credit products interest rate solid higher.
 offset lower commodities currencies.
 concerns improved tighter credit spreads less.
 revenues equities $. 21 billion unchanged.
revenues securities services higher 2011 gain $ 500 million sale hedge fund administration business.
 equities execution revenues higher higher cash products increased client activity.
 offset lower commissions fees market volumes.
 global equity prices lower volatility.
 net loss credit spreads $ 714 million $ million $ 281 million 2012 gain $ 596 million $ 399 million $ 197 million 2011.
 institutional services market concerns uncertainties positive developments.
 central bank actions funding risks.
.
 data unemployment housing.
 tighter credit spreads higher equity prices lower volatility.
 concerns global economy political uncertainty client risk aversion lower activity.
 uncertainty financial regulatory reform.
 revenues fixed income currency.
 operating expenses $ 12.billion 2012 3% lower 2011 lower brokerage fees impairment charges litigation regulatory.
 pre-tax earnings $ 5. 64 billion 27% higher 2011.
.
 institutional services $ 17. 28 billion 21% lower 2010.
 fixed income currency commodities $ 9. 02 billion 34% lower 2010.
 market concerns uncertainty volatile markets wider credit spreads risk.
 revenues lower declines mortgages credit products.
 sachs 2012 annual report


.
 new guidance company recorded liability future death benefits employees 2019 retirement $ 45 million adjustment january 1 2008 retained earnings income loss $ 4 million $ 41 million consolidated statement.
 minimal cash payments policies.
 net cost split-dollar life insurance $ 6 million 31 2009 2008.
 liability future death benefits $ 48 million $ 47 million december 31 2009 2008.
.
. 401 ( k ) plan contributory.
 matching contributions based.
 newly hired employees higher maximum matching contribution 4% first 3%.
 2009 company suspended matching contributions 401 ( k ) plan.
 expenses employer match years 2009 2008 2007 $ 8 million $ 95 million $ 116 million.
.
share compensation plans incentive plans stock options appreciation rights employee purchase plan grants options stock employees holders.
 option exercise price 100% fair market value stock.
 awards five ten years two four years.
 holder terminated quits 24 months.
 employee stock purchase plan payroll deductions 10% compensation.
 more $ 25000.
 price per share 85% fair market value stock.
 two purchase periods october 1 march 31 april 1 september 30.
 2009 2008 2007 employees purchased 29. 4 million 18. 9 million. 2 million shares prices $ 3. 60 $ 3. 68 $ 7. 91. $ 14. 93 $ 15. 02.
 calculates value option black-scholes pricing model.
 value 2009 2008 2007 $ 2. 78 $ 3. 47 $ 5. 95 .
 2009 2008 2007
 volatility 57. 1%. 1 % 56. 4%. 4 % 28. 3 %
 risk-free interest. 9%. % 2. 4%. %. 5%. 5 %
. 7% %. 1%
.


republic services.
 financial statements 2014.
 employee benefit plans stock-based compensation 2007 approved 2007 stock incentive plan may 2007 shareholders ratified.
 march 2011 amended.
 march 2013 approved.
 may shareholders ratified.
 15. million shares common stock future grants.
 options granted non-qualified equal fair market value common stock.
 options seven to ten years vest 25% per year four years first anniversary.
 options non-employee directors ten years fully vested grant date.
 december 2008 board directors amended republic services.
 2006 incentive stock plan allied waste industries.
.
 approved 2006.
 amended restated december 2008 republic new sponsor references common stock outstanding awards number shares allied acquisition.
2006 plan non- qualified incentive restricted stock phantom stock bonuses units appreciation rights performance awards dividend equivalents cash awards.
 granted 2008 vested nonforfeitable closing allied acquisition.
 no further awards lattice binomial option-pricing model grants.
 compensation expense straight-line service period portion retirement.
 volatility based recent year historical rolling average.
 risk-free interest rate federal reserve rates bonds.
 historical data estimate future option exercises forfeitures. life.
 groups considered separately.
 options december 31 2015.
 values 2014 2013 $ 5. 74 $ 5. 27 per option calculated assumptions.
 expected volatility 27. 5%. 28. 9%.
 risk-free interest rate 1. 4%.
 dividend yield 3. 2%.2%.
 expected life 4. 6.
 contractual life 7.


2018 form 10-k 107 part iii item 10.
 directors executive officers corporate governance code conduct ethical conduct certificates principal executive financial officer accounting officer item 1.
 annual report.
 directors sections.
 1 election board nominees governance committees proxy statement 2019 annual meeting 120 days fiscal year december 31 2018.
 executive officers 1.
 executive officers annual report.
 compliance directors executive officers section 16 a exchange act 16 beneficial ownership reporting compliance.
 item 11.
 executive compensation discussion committee. item 12.
 security ownership beneficial owners management stockholder matters sections ownership section 16 director executive officers.
 employees officers directors trading plans rule 10b5-1 exchange act.
rule 10b5-1 criteria individual plan to buy or sell shares company stock period.
 plan entered good faith nonpublic information.
 plan receipt nonpublic information prevent transactions.
 officers advised enter stock sales plans for shares common stock rule 10b5-1.
 company may future enter repurchases stock plan rule 10b5-1 or 10b-18.
 equity compensation plan information table presented as of december 31, 2018 shares common stock issued plan approved by stockholders millions.
 equity compensation plan category number securities issued options warrants rights weighted average exercise price number securities future issuance.
 plancategory price future
 stockholder-approved plans  2. 7 $ 36. 11 46.
nonstockholder plans 2014
 weighted average exercise price. 11.
 employee stock purchase plan 2014.
.


union-represented mainline employees covered amendable.
 joint reached post-merger groups except maintenance fleet service stock clerks training instructors association separate cbas amendable third quarter 2018.
 negotiations outside traditional bargaining process no self-help permissible.
-owned regional subsidiaries mechanics flight attendants agreements amendable negotiations.
 envoy passenger service employees negotiations.
 piedmont fleet passenger service employees tentative five-year agreement subject to ratification.
.
 disputes strikes labor disruptions affect operations. availability price jet fuel second largest expense.
 one cent per gallon increase fuel price 2018 annual fuel expense $ 45 million.
 aircraft fuel consumption costs mainline regional operations 2017 2016 2015.
.
.73 $ 7510 19. 7%. 7 % )
 2016 4347. 42 6180 17. 7%. 7 % )
 2015 4323. 72 7456 21. 4%. 4 % )
 december 31 2017 fuel hedging contracts.
 exposed fluctuations prices.
 current policy not.
 fuel prices fluctuated.
 predict future availability price volatility cost.
 natural disasters.
 political disruptions wars fuel governmental policy strength.
 dollar petroleum pipelines terminals speculation energy futures fuel production capacity environmental concerns supply shortages distribution challenges fuel price volatility cost increases.
.
 business price availability aircraft fuel.
 high volatility increased prices disruptions operating results liquidity. demand revenues airline second third quarters greater first fourth quarters.
economic conditions fears terrorism fare initiatives fuel prices labor actions weather disasters outbreaks impact seasonal pattern.
 quarterly results year historical results future.


.
 granted 2006 plan 2008 vested nonforfeitable merger.
 after 2008 employees consultants allied waste industries.
 not employed republic services.
.
 december 31 2009. 3 million shares common stock future grants 2006 plan.
 binomial option-pricing model.
 compensation expense straight-line period retirement.
 volatility based-year historical average.
 risk-free interest rate federal reserve rates.
 historical data estimate future option exercises.
.
 average values stock options 31 2009 2008 2007 $ 3. 79 $ 4. 36 $ 6. 49 per option assumptions.
 volatility 28. 7%. 7 % 27. 3%. 3 %. 5%. 5 %
 risk-free interest rate. 4%. 7%. 7 8%. 8 %
 dividend yield.1%. 1 %. 9 %. 5%. 5 %
 life. 2.
 life forfeiture. 0%. 0 %. 0% %. 0% 0 %
 services.
 subsidiaries financial statements


entergy subsidiaries new nuclear generation costs joint stipulation mississippi public utilities recovery costs deferred mpsc nuclear generation.
 note 2 financial statements.
 revenue 2015 2014.
.
 2014 revenue $ 5735
 retail electric price 187
 volume/weather 95
 louisiana business credits -107
 miso deferral -35
 waterford 3 replacement steam generator provision
 2015 net revenue $ 5829
 retail electric price variance 2022 formula rate plan increases entergy louisiana energy efficiency revenue entergy arkansas louisiana mississippi.
 offset operation maintenance income annual net rate increase entergy mississippi $ 16 million mpsc order june 2014 rate case.
 note 2.
 volume/weather variance increase 1402 gwh 1% billed electricity usage industrial usage favorable weather.
 increase industrial sales due expansion chemicals industry new customers offset decreased demand maintenance outages.
 louisiana business combination credits regulatory liability $ 107 million entergy 2015.
 customers realize credits regulatory liability $ 107 million $ 66 million net-of-tax.
 note 2 financial statements.


unpaid residential mortgage loans 30 percent assets one-twentieth outstanding advances.
 collateral 110 to 115 percent advances.
 secured mortgage loans securities.
 december 2007 2006 pledged $ 16. 8 billion $ 12. 9 billion one- to four-family home equity loans collateral.
 raises capital trusts.
 securities redeemed due date 30 years after issuance.
 liquidation $ 1000 per.
 proceeds purchase debentures obligations contributes e*trade bank.
 2007 formed three trusts.
 issued 60000 shares $ 60. million.
 proceeds invested debentures 2037 variable rates. 90%. 95%. 10%. above three- month libor quarterly.
 2006 five trusts.
 issued 95000 shares $ 95 million.
proceeds invested debentures 2036 2037 variable rates 1. 95%. 95 % 2. 10%. 10 % above three-month libor payable.
 2007 sold $ 10. million 2002 loss $. 3 million.
 sold $ 9. million 1997 loss $. million.
 2006 sold $ 15. million 2001 loss $. 5 million.
 values trusts december 31 2007 maturity date annual interest rate.
 $ 5000 2031 10. 25%. 25 %
 20000 3. 75%. 75 % 6-month libor
 51000 3. 25%-3. 65%. 65 %
 3. 30%. 30 %
 $ 77000 2. 45%-2. 90%. 90 % 3-month
 60000 2. 20%-2. 40%.% 3-month libor
 $ 45000. 10% 3-month libor
 110000. 3-month libor
 company multiple term loans.
 collateralized equipment.
 interest 1% above libor.
 $ 40 million principal outstanding december 31 2007.
 $ 12. million overnight short-term borrowings federal reserve bank investment programs.
 pledged $ 12. million securities secure borrowings.


performance 100 invested 2011 index reinvestment dividends.
 year 2016.
 delphi automotive s&p 500 automotive supplier russell 3000 auto parts index american axle borgwarner. cooper tire rubber dana. delphi dorman products. federal-mogul. ford motor. general motors. gentex. gentherm. genuine parts. goodyear tire rubber. johnson controls lear. lkq. meritor. standard motor products. superior industries tenneco. tesla motors. tower international. visteon. wabco holdings.
 31.
 2011 2012 2013 2016
 delphi automotive plc 100. 177. 283. 414. 331.
 s&p 500.
 automotive supplier peer group.
company declared paid dividends $. 25. 29 share 2015 2016.
 declared quarterly dividend $. 29 share payable 15 shareholders business 6.


revenue growth depends on reliability functionality infrastructure delivering human resources services.
 internet key for cost effectively.
 clients may to services to concerns transaction security privacy reliability quality internet service.
 concerns internet confidential.
 security service reliability investments in online.
 websites services interruptions delays.
 additional laws may impede efficiency decrease demand.
 if internet revenue growth results.
 lose client data catastrophes.
 multiple processing centers for disaster recovery.
 main data processing center near aon hewitt headquarters lincolnshire illinois.
 disaster business continuity may data recovered for programs.
.
.
.
.
 offices in locations.
 leased premises.
 corporate headquarters at 200.
 randolph street chicago illinois 327000 square feet under lease agreement expires 2013.
five-year renewal options market rates.
 building pallbergweg 2-4 amsterdam 150000 square feet.
 properties footage.
 overlook lincolnshire illinois
 2601 forest woodlands orlando florida
 devonshire new york
. milwaukee glenview illinois
 hewitt associates charlotte carolina
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
 locations lincolnshire illinois woodlands texas orlando florida charlotte north carolina hewitt.
.


required stock pay quarterly dividends available funds.
 declare funds dividend junior stock parity stock redeem purchase acquire stock unless paid funds dividends periods.
 paid quarterly dividends $ 0. 265625 per share february 1 may 1 august 3 november 2 2009 2008.
 annual cash dividend december 31 2009 2008 $ 10 million $ 10 million.
 2010 declared cash dividend $ 0. 265625 per share preferred stock $ 3 million $ 0. 04 per share common stock $ 6 million.
 november 2 2009 to january 31 2010 paid february 1 holders.
 redeem preferred stock february 22 , 2010.
 holders convert shares 5:00 p. february 19 , 2010 redemption date.
outstanding shares december 31 2009 redemption preferred stock cash dividends 2010 less than 2009.
 amount cash dividends restricted by senior credit agreement.
 decision declare dividends discretion board directors results operations cash requirements financial condition contractual restrictions factors.
 purchases equity securities table repurchases common stock three months ended december 31 2009 shares purchased average price paid per share dollar value shares remaining.
 value
 october 1-31 2009 24980. 122300000.
 november 1-30 2009.
 december 1-31 2009.
 shares withheld withholding requirements income taxes stock.
 no shares purchased three months ended december 31 2009 stock repurchase plan.
job d70731 033000000 05:41 valid no graphics color


shareowner return performance graph material future filing securities act 1933 exchange act 1934 except.
 five-year comparison shareowners 2019 returns class b common stock standard 500 index dow jones transportation average.
 quarterly stock price reinvested dividends $ 100 invested december 31 2012 standard 500 index dow jones transportation average class common stock.
 united parcel service. 100. $ 146. $ 159. 148. 182. $ 195.
 500 index. 132. 150. 152. $ 170. $ 208.
 dow jones transportation average. $ 141. 176. 147. 179. $ 213.


page 92 98 item 10 201cdirector nominees directors 201d 201csection 16 beneficial ownership reporting compliance 201d company 2019s proxy statement regulation 14a december 31 2006 incorporated.
 item 11.
 executive compensation compensation incorporated.
 ball corporation 2000 deferred compensation company stock plan deposit share program directors deposit share program encourage executives larger equity ownership increase stock performance.
 non-employee directors participate.
 item 12.
 security ownership beneficial owners management 201cvoting securities principal shareholders proxy statement incorporated.
 securities authorized equity compensation plans.
 plan category number securities outstanding options warrants rights weighted-average exercise price securities future issuance
equity compensation plans approved 4852978 $ 26. 69 5941210
 not approved 2013
 4852978 $ 26. 69 5941210
 13.
 relationships transactions appointment independent accounting firm proxy statement 120 days december 31 2006.
 14.
 accountant fees services committees board 120 days december 31 2006.


cash dividends restricted by subsidiaries debt agreements.
 senior subordinated notes discount notes limit bcp crystal llc subsidiaries pay dividends.
 decision dividends discretion board directors on results cash requirements financial condition contractual restrictions factors.
 minority shareholder celanese ag shares guaranteed annual payment. 27 per share less corporate taxes future dividend.
 profit loss transfer agreement. board declare dividends 2018 2018surplus total assets fair market value minus liabilities capital or no surplus net profits for fiscal years.
 assets measured not equal book value.
 value capital adjusted by less than aggregate par value of issued stock.
 base determination on financial statements fair valuation method.
 statutory requirements before declaring dividends.
 seek opinions from valuation firms solvency assets dividends.
if opinion likely pay dividends.
 prohibited paying dividend common stock unless payments due made.
 purchases equity securities number shares purchased average price paid per share total plans programs maximum dollar value october 1 2013 31 2005 november 1 december 1 31 10000 $ 18. 705 2014.
 totalnumber ofshares purchased 1 averageprice paidper share total programs maximumnumber dollar value
 october 1 2013
 november1
 december1 31 $ 18. 705
 $.
 10000 shares of common stock purchased open market december 2005 at $ 18. 705 per share approved board directors 2004 stock incentive plan shareholders december 2004 granted to two employees recognition contributions.
 no other purchases planned.
equity compensation plans information item 5 incorporated section 2018 authorized proxy statement 2006 annual meeting.
 sales unregistered securities


republic services.
 financial statements 2014 2008 board directors amended.
 2006 incentive stock plan allied waste industries.
.
 shareholders approved may 2006.
 amended restated december 2008 republic new sponsor references common stock awards shares allied acquisition.
 non- qualified stock options incentive stock options restricted stock stock bonuses units appreciation rights performance awards dividend equivalents cash awards awards.
 december 2008 vested nonforfeitable closing.
 no further awards lattice binomial option-pricing model grants.
 compensation expense straight-line service period retirement.
 volatility based recent year historical rolling average.
 risk-free interest rate federal reserve rates.
 historical data estimate future option exercises forfeitures. expected life.
 groups similar behavior considered separately valuation.
 weighted-average stock options 2014 2013 2012 $ 5. 74. 27 4. 77 option calculated assumptions.
 volatility 27. 5%. 5 %. 9 %. 8 %
 risk-free interest rate. 4%. 4 %. 7%. 7 %. 8% 8 %
 dividend yield. 2%. 2 %. 2 %
 life. 6
 life 7.


synopsys.
 financial statements.
 $ 316. 6 million $ 4. 6 million stock awards assets liabilities intangible assets $ 96. 7 million&d $ 13. 2 million goodwill $ 210. 1 million.
 costs $ 13. million.
 sales growth integration.
 intangible assets relationships contract rights trademarks valued income method amortized over two ten years.
.
 restricted stock units appreciation rights $ 21. 7 million.
 $ 4. 6 million purchase $ 17. 1 million future services.
 seven acquisitions.
 allocated $ 221. 7 million assets liabilities assumed goodwill $ 110. 8 million.
 assets $ 92. 8 million amortized one to ten years.
 acquisition-related costs $ 10. 6 million statements operations.
 purchase included contingent $ 10. million payable technology milestones three years.
 liability estimated fair value $ 7. million remeasured quarterly three-year statements.
 no contingent liability end fiscal 2012.
.
 goodwill intangible assets.
 balance october 31 2010 $ 1265843
 30717
 adjustments
 balance october 31 2011 $ 1289286
 adjustments october 31 2012 $ 1976987
 adjustments changes estimates acquisitions prior price achievement milestones 2010.


equity investment.
 business segment earnings millions $ 207
 pnc 2019s share blackrock earnings 23% 23 % 33% 33 %
 pnc 2019s investment billions $ 5. 8 $ 4. 2
 investment billions. includes earnings income taxes.
.
 blackrock/barclays 2009 acquired bgi barclays bank $ 6. 65 billion cash 37566771 shares blackrock stock.
 amendments stockholder agreements pnc.
 transfer restrictions effective.
 stock purchase agreement 3556188 shares series d preferred stock $ 140. 60 per share $ 500 million.
 january 31 2010 series d stock converted to series b stock.
 value investment blackrock increased increase equity.
 $ 1. 076 billion pretax gain fourth quarter 2009.
december 31  2009 ownership blackrock common stock 35%.
 income pretax gains $ 98 million 2009 $ 243 million 2008.
 gains mark-to-market adjustment decrease market value.
 exchange agreement blackrock december 26 2008.
 restructured ownership blackrock equity economic interest.
 limitations voting rights agreements.
 exchange agreement merrill lynch merger bank of america merrill lynch january 1 2009.
 restructured ownership blackrock equity.
 exchange completed february 27  2009.
 obligation shares replaced series c preferred stock.
 acquired 2. 9 million shares series c stock blackrock common shares.
 pnc accounts preferred shares fair value offsets impact obligation.
 blackrock stock balance sheet.
valuation blackrock series c stock note 8 financial statements.
 pnc accounts investment blackrock equity earnings reduced due exchange blackrock common stock c stock.
 not pnc 2019s blackrock earnings.
 pnc ownership blackrock increased exchange merrill lynch blackrock common stock.
 share blackrock common stock higher blackrock 2019s equity earnings.
 transactions exchange agreements affect right dividends.


hologic  inc.
 consolidated financial statements future debt payments.
 2008 $ 1977
 2009 1977
 2010
 2011 1422
 2012 3846
 2014
 $ 11199
.
 derivative instruments hedging agreements interest rate swaps acquisition acquired interest rate swap contracts convert floating interest-rate debt obligations fixed rates.
 agreements qualify hedge accounting financial accounting standards.
 marked change fair value.
 terminated interest rate swaps fourth quarter 2007 gain $ 75.
 assumed foreign currency contracts hedge foreign currency fluctuations assets liabilities.
 exposures offset gains losses forward contracts.
 short- term 6 to 12 months.
 trading speculative purposes.
 not cash flow fair value hedges.
 effective hedges.
forward contracts marked market recorded balance sheet fair value assets liabilities.
 changes value exposures income statements.
 september 29 2007 forward contracts aeg acquisition matured no contracts outstanding.
.
 2 2006 acquisition assumed defined benefit pension plans subsidiary.
 september 29 2006 fasb issued.
 defined benefit pension plans amendment fasb statements.
 87 88 106 132.
 asset defined benefit postretirement


aes corporation financial statements 2014 december 31 2018 2017 2016 reconciliation unrecognized tax benefits millions.
 2017 2016
 balance january 1 $ 348 $ 352 $ 364
 additions current year tax positions
 additions prior years
 reductions prior years
 settlements
 lapse statute limitations
 balance december 31 $ 463 $ 348 $ 352
 company subsidiaries examination taxing authorities years.
 assesses outcome examinations unrecognized tax benefit.
 difficult predict outcome uncertain tax position accrued uncertain tax benefits.
 audit outcomes events unrecognized tax benefits uncertainty.
 examinations exceed provision unrecognized tax benefits december 31 2018.
 effective tax rate net income.
.
operations portfolio evaluation 2016 management shift distribution companies sul eletropaulo reduce exposure.
 disposals sul eletropaulo completed october 2016 june 2018.
 2017 converted preferred shares listing novo mercado brazilian stock exchange.
 aes controlled eletropaulo maintained influence.
 deconsolidated eletropaulo.
 17% ownership equity.
 after-tax loss $ 611 million $ 455 million translation losses $ 243 million pension losses.
 2017 criteria met discontinued operation.
 financial statements.
 june 2018 17% ownership eletropaulo bidding process.
 proceeds $ 340 million subsidiary.
 pre-tax gain sale $ 243 million after $ 199 million.
 pre-tax loss immaterial year december 31 2018.
eletropaulo pre-tax loss 2017 2016 $ 633 million $ 192 million.
 south america sbu.
 sale sul subsidiary 2016.
 discontinued operations statements.
 after-tax loss $ 382 million pre-tax impairment charge $ 783 million offset tax benefit $ 266 million $ 135 million deferred taxes.
 carrying value sul asset group $ 1. 6 billion greater fair value costs.
 impairment charge limited assets.


.
 level 1 traded exchanges valued closing prices last trading day year.
.
 trustee obtains quotes pricing vendor broker investment.
 level 2 3.
 commingled equity funds level 1 traded international exchanges valued closing prices last trading day year.
 not trustee obtains quotes vendor broker investment.
 level 2.
 fixed income investments level 2 valued market data. bids quoted prices.
 investments level 3 valuations unavailable.
 trustee obtains pricing indicative quotes bid evaluations vendors brokers.
 commodities traded active exchange valued closing prices last trading day commingled equity funds valued. valuations based underlying investments redeemable 90 days.
 private equity funds partnership co-investment funds.
navaa based valuation models securities unobservable inputs market data.
 funds redemption periods eight 12 years.
 real estate funds closed-end funds based valuationmodels appraisals.
 redemption periods eight 10 years.
 hedge funds direct funds based valuation investments.
 redemptions based specific terms month to months.
 funding defined benefit pension plans determined erisa internal revenue code rules.
 no material contributions 2017.
 $ 5. 0 billion 2018. cash funding until 2021. fund cash commercial paper.
 issue new debt.
 estimated future benefit payments employee service december 31 2017 millions.
 qualified defined benefit pension plans $ 2450 2480 2560 2630 2700 14200
 retiree medical life insurance plans 180
plans 401 k ) employees.
 contributions.
 $ 613 million 2017 $ 617 million 2016 393 million 2015 funded common stock.
 35. 5 million 36. 9 million shares common stock 2017 2016.


primary disbursement accounts reclassified payable accrued liabilities.
 credit risk instruments cash equivalents trade accounts receivable derivative instruments.
 place cash equivalents high quality financial institutions.
 fdic insured limits.
 monitor credit worthiness.
 credit risk trade accounts limited variety customers markets dispersion operations.
 commercial industrial municipal residential customers united states puerto rico.
 perform credit evaluations require collateral.
 establish allowance for doubtful accounts credit risk historical trends economic conditions.
 5% accounts receivable balance at december 31 2009 2008.
 collection transfer recycling disposal.
 recorded billed claims settled in cash.
 estimated net realizable value.
 evaluated experience economic conditions.
 review balances.
 reserves for accounts receivable ninety days old.
receivable balances written-off collection efforts.
 table reflects allowance doubtful accounts 2009 2008 2007.
 $ 65. 7 $ 14. $ 18.
 additions 27. 36.
 accounts written-off.
 27.
 end year $ 55. $ 65. 14.
 acquisition allied provision doubtful accounts $ 14. 2 million allowance accounting policies.
 $ 5. 4 million bankruptcy exposures 2008.
 2007 $ 4. million reduction allowance doubtful accounts estimate.
 december 31 2009 $ 236. million restricted cash $ 93. 1 million tax-exempt bonds capital republic services.


subsidiaries premiums years december 31 2009 2008 2007 millions.
 percentages amount ceded amount percentage assumed.
 31 2008 2007 millions. amount ceded net amount percentage
 2009 $ 15415 $ 5943 $ 3768 $ 13240 28% 28 %
 2008 $ 16087 $ 6144 $ 3260 $ 13203 25% 25 %
 2007 $ 14673 $ 5834 $ 3458 $ 12297 28% 28 %


goldman sachs group.
 subsidiaries management commissions fees $ 3. 20 billion 2018 5% higher 2017 cash equity futures volumes market.
 revenues $ 9. 45 billion 2018 23% higher 2017 higher equity interest rate commodities.
 offset lower results mortgages lower credit products.
 $ 5. 82 billion 2% lower 2017 losses public equities offset higher gains private equities.
.
 $ 3. 77 billion 2018 28% % higher 2017 higher interest rates collateralized agreements assets deposits loans higher yields.
 offset higher interest expense higher interest rates liabilities collateralized financings deposits long-term borrowings borrowings deposits.
 disclosures 2014 assets liabilities.
 2016 $ 32.billion 2017 6% % higher 2016 higher investment banking interest.
 offset lower market commissions fees.
.
 investment banking $ 7. 37 billion 18% higher 2016.
 financial advisory higher mergers acquisitions.
 underwriting higher debt equity.
 investment management $ 5. 80 billion 7% 7 % higher 2016 higher management fees assets transaction revenues.
 commissions fees $ 3. 05 billion 5% 5 % lower 2016 cash equity.
.
.
 $ 7. 66 billion 23% 23 % lower 2016 lower revenues commodities currencies credit products interest rate equity derivative products.
 offset higher equity cash improved mortgages.
 transactions $ 5. 91 billion 75% higher 2016 net gains private equities.
net gains from public equities higher equity prices increased.
 net interest income.
 $ 2. 93 billion 2017 13% higher than 2016 higher interest rates agreements loans receivable financial instruments interest rates assets deposits.
 increase income offset by higher interest expense interest rates long borrowings deposits short-term borrowings collateralized financings.
 disclosures 2014 2019.
 provision for credit losses loans receivable lending commitments.
 note 9 consolidated financial statements.
.
 millions 2018 2017 2016
 losses $ 674 $ 657 $ 182
 sachs 2018 form 10-k


balancing accounts accumulate differences until collected refunded.
 include low income programs purchased power water accounts.
 debt expense amortized over.
 premiums redemption long term debt unamortized debt deferred amortized recovered future service rates.
 american water capital. prepayment. 62%. series c senior notes 2018. 77%. series d notes 2021 make-whole premium $ 34 million recorded $ 6 million charge early extinguishment debt parent company.
 costs utility subsidiaries assets future.
 $ 1 million amortized 2017.
 purchase premium recoverable acquisition premiums 2007.
 amortized in statements through november 2048.
 tank painting costs deferred amortized to operations maintenance expense two to fifteen years regulatory authorities.
regulatory assets include construction property tax employee postretirement benefit business services coastal water rate case expenditures environmental remediation costs.
 costs deferred.
 regulatory liabilities.
 recovered records regulatory liabilities.
 table regulatory liabilities december 31.
 income taxes recovered $ 1242 $ 2014
 removal costs
 pension postretirement benefit
 regulatory liabilities $ 1664 $ 403
 taxes recovered deferred refunded.
 december 22 2017 tcja law changes revenue code reduction.
 federal corporate income tax rate 35% to 21% january 1 2018.


graph shows five-year comparison shareholder return common stock s&p small cap 600 russell 1000 index published indices.
 2005 2010 $ 100 invested reinvestment dividends returns.
 100. 108. 103. 88. 133. 178.
&p small cap 600 index 100. 115. 114. 78. 98. 123.
 russell 1000 100. 115. 122. 76. 97. 113.
 s&p smallcap 600 russell 1000


management financial condition results operations 2013 amounts millions liquidity capital resources cash flow tables financial data liquidity capital resources.
 2015 2014 2013
 net income operating $ 848. $ 831. $ 598.
 working -117. 117 -131.
 non-current assets liabilities -56. -30.
 cash operating activities $ 674. $ 669. $ 592.
 investing -202. 202 -224.
 financing -472. 472 343.
 income depreciation amortization intangible amortization restricted stock non compensation extinguishment debt losses sales deferred income taxes.
 changes accounts receivable expenditures assets accounts payable accrued liabilities.
 operating activities cash 2015 $ 674. improvement $ 4.compared 2014 improvement working capital usage $ 13.
 seasonality generate second use first largest impacts first fourth quarters.
 net working capital usage 2015 attributable media businesses.
 net cash $ 669. improvement $ 76. 2013 increase net income offset working capital usage $ 121.
 capital impacted media businesses.
 timing media buying affects capital cash flow.
 agencies pay production media costs.
 after funds.
 exceed revenues affect accounts receivable expenditures payable accrued liabilities.
 assets cash accounts receivable liabilities.
 affected timing payments.
 annual cash incentive awards paid first quarter.
 cash 2015 capital expenditures $ 161. leasehold improvements computer hardware.
.
 $ 148. computer hardware software leasehold improvements.
 payments $ 67.acquisitions 2014 cash.


positive train control 2013 mandate ptc spend $ 450 million developing deploying ptc.
 federal cost $ 2 billion end project.
 includes installing system upgrading locomotives adding digital data equipment.
 financial expectations 2013 cautious economic industrial production grows 2% volume exceed 2012 levels.
 earnings exceed 2012 core pricing gains network improvements operational productivity initiatives.
 new bonus depreciation program federal impact cash flows 2013.
 revenues.
 freight revenues $ 19686 $ 18508 $ 16069 6% 15% 15 %
 $ 20926 $ 19557 $ 16965 7%
 six commodity groups.
 vary volume average revenue per car.
 price traffic mix fuel surcharges.
customers incentives volumes shipping locations record reductions freight revenues shipments.
 recognize freight revenues destination.
 allocate transit time recognize expenses.
 revenues subsidiaries commuter rail operations accessorial revenues equipment services.
 recognize revenues obligations.
 freight revenues four commodity groups increased 2012.
 coal agricultural products declined.
 franchise diversity growth shale markets automotive manufacturing declines.
 increased 7% pricing gains fuel cost recoveries.
 prices.
 freight revenues six commodity groups increased 2011 volume increased.
 increased demand growth chemicals industrial products automotive shipments.
 increased 12% higher fuel cost recoveries pricing gains.
 recoveries surcharge revenue base fuel price.
 higher fuel prices volume growth new provisions contracts revenues.
fuel surcharge programs generated freight revenues $ 2. 6 billion. 1. 2 billion 2012 2010.
 fuel prices increased surcharge coverage drove increases.
 not traffic.


7a.
 disclosures market risk millions exposed to market risks interest rates foreign currency balance sheet items.
 use derivative instruments manage risks.
 derivative instruments risk management tools not trading speculative.
 exposure market risk fair market value cash flows debt obligations.
 majority debt 94% 93% 93 % december 31 2017 2016 bears interest fixed rates.
 debt variable interest rates 10% increase decrease not material interest expense cash flows.
 fair market value debt sensitive changes interest rates impact 10% change interest summarized.
.
.
.
 used interest rate swaps risk management exposure.
 interest rate swaps outstanding december 31  2017.
 $ 791. 0 cash equivalents marketable securities december 31 conservative short-term bank deposits securities.
interest income investments subject to domestic foreign interest rate movements.
 2017 2016 income $ 19. 4 $ 20. 1.
 100 basis-point increase interest rates income $ 7. 9 cash equivalents securities impacted balances constant.
 subject translation transaction risks.
.
 changes exchange rates affect revenues expenses.
.
 currencies british pound sterling brazilian real south african rand.
.
 dollar 10% operating income 4% 4 % currencies revenue expenses constant 2017.
 currency operations local currency.
 assets liabilities translated at exchange rates revenues expenses average exchange rates.
 translation adjustments recorded accumulated loss.
 foreign subsidiaries collect revenues pay expenses in currency.
 subsidiaries transactions other.
 liabilities susceptible to movements until final settlement.
currency transaction gains losses included in office general expenses.
 review foreign exchange exposures use currency exchange contracts hedge fluctuations rates.
 enter contracts for speculative purposes.


positions capitalized.
 no positions twelve months.
 liquidity capital resources.
 fiscal years october 2010 2 2009 3 2008
 equivalents $ 364221 225104 241577
 operating activities 222962 182673
 investing -95329 -49528 -94959
 financing -38597 -30160 -104187
 equivalents end period 453257 364221 225104
 restricted cash balances cash flow activities non-cash items assets liabilities.
 2010 generated $ 223. million cash flow increase $ 4. million. million 2009.
 net income increased $ 42. million $ 137. million.
 consistent.
 due 2010 income deferred tax expense $ 38. million. million tax valuation allowance.
 invested working capital higher business activity.
 accounts receivable inventory payable increased $ 60. million.42. 9 million.
 investing capital expenditures acquisitions.
 outflows $ 95. 3 million 2010 $ 49. 5 million.
 $ 49. 8 million capital expenditures.
 spending 2011.
 debt equity.
 outflows $ 38. 6 million $ 30. 2 million.
 retired $ 53. million. 2007 convertible notes $ 80. 7 million $ 29. 6 million premium equity.
 proceeds stock option exercises $ 40. 5 million 38. 7 million.


stock performance graph not 201csoliciting material securities exchange commission future filings securities act 1933 exchange act.
 compares shareholder return common stock standard 500 stock index amex airline index december 9 2013 31 2014.
 assumes $ 100 invested 2013 stock reinvestment dividends.
 historical not indicative future price performance.
 12/9/2013/31/2013 12/31/2014
 american airlines group. $ 100 103 $ 219
 amex airline index
 s&p 500


financial expectations 2013 cautious economic environment industrial production grows 3% volume exceed 2013.
 growth earnings exceed 2013 pricing gains network improvements productivity initiatives.
 free cash flow 2014 lower 2013 operations offset additional cash $ 400 million income taxes capital spend higher dividend payments.
 operations revenues 2011.
 freight revenues $ 20684 $ 19686 $ 18508 5% 5 6% 6 %
 other revenues
 $ 21963 $ 20926 $ 19557 5% 7% 7 %
 freight revenues six commodity groups.
 vary volume.
 price traffic mix fuel surcharges.
 contractual incentives volumes reductions freight revenues.
 recognize revenues.
 allocate revenues transit time recognize expenses.
revenues include subsidiaries commuter rail accessorial equipment services.
.
 freight revenues five commodity groups increased 2013.
 agricultural products.
 increased 5% core pricing gains business automotive logistics management.
 volume flat growth automotives frac sand crude oil domestic intermodal declines coal grain.
 revenues four six commodity groups increased 2012.
 coal agricultural declined.
 franchise diversity growth markets automotive manufacturing declines.
 increased 7% 7 % core pricing gains higher fuel cost recoveries.
 improved recovery provisions prices.
 programs revenues $ 2. 6 billion $. billion $. billion 2013 2012.
 surcharge flat price.
 rising fuel prices more shipments increase 2011 to.
2013 revenue increased 2012 contract revenue subsidiaries.
 2012 2011 higher subsidiaries.
 assessorial revenues container revenue intermodal shipments.


part iii item 10.
 directors executive officers corporate governance directors selection process conduct committees committee 16 beneficial ownership reporting compliance proxy statement annual meeting stockholders may 21 2015 executive officers part form 10-k officers. new york stock exchange certification chief executive officer annual ceo certification section 303a. 12 stock exchange company manual.
 item 11.
 executive compensation- management director discussion analysis leadership talent committee report.
 item 12.
 security ownership beneficial owners management stockholder matters shares ownership common stock shares common stock issued equity compensation plans december 31 2014 table.
 equity compensation plan number shares issued outstanding options warrants rights exercise price stock options securities future issuance equity plans.
.
.
.
.
.
.
.
.
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.
. 41661517 equity compensation plans approved holders.
.
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.
.
.
.
.
.
.
.
.
.
.
.
.
 5866475 performance-based share awards 2009 2014 incentive plans shares stock 2012-2014 2013-2015 2014-2016.
 weighted-average price 2014 2015 2016.
 98877 restricted share units performance-based awards settled in shares common stock cash.
.
 settled cash shares common stock.
 restricted cash awards half settled in shares common stock cash.
 2014 closing stock price $ 20. awards rights additional 2721405 shares.
 not included table.
29045044 shares common stock 2014 performance incentive plan 12181214 shares employee stock purchase plan 435259 shares 2009 non-management directors 2019 stock incentive plan.
 category shares stock outstanding options warrants rights 123 weighted-average exercise price stock options securities future equity compensation plans
 equity compensation plans approved 15563666. 41661517
 not
 part iii item 10.
 directors executive officers corporate governance information directors selection process conduct committees committee beneficial ownership reporting compliance proxy statement annual meeting stockholders may 21 2015 executive officers part form 10-k. stock exchange certification 2014 chief executive officer annual ceo certification section. stock exchange company manual.
.
compensation compensation management director compensation discussion analysis leadership talent committee report proxy statement.
.
 security ownership owners management stockholder matters shares ownership common stock shares common stock equity compensation plans december 31 2014.
 compensation plan shares common stock options warrants rights-average exercise price stock options securities future approved security holders.
.
.
.
.
.
.
.
.
.
.
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.
. compensation plans approved
.
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.
.
.
 5866475 performance-based share awards 2009 2014 performance incentive plans target shares common stock issued 2012-2014 2013-2015 2014-2016.
weighted-average exercise price column 2014 2015 2016.
 98877 restricted share units performance-based awards settled common stock cash.
 weighted-average price awards.
 award settled cash shares common stock column.
 ipg issued restricted cash awards half settled common stock cash.
 2014 closing stock price $ 20. 77 awards additional 2721405 shares.
 not included table.
 4 29045044 shares common 2014 performance incentive plan 12181214 employee stock purchase plan 435259 shares 2009 non directors stock incentive plan.


graph annual changes december 1 2013 shares to 31 2017 $ 100 invested allegion plc shares standard 500 stock index capital goods index 2013 dividends reinvested.
 total cumulative dollar returns represent value investments december 31 2017.
.
 2013 2014 2015 2016 2017
 allegion plc 100. 102. 129. 154. 150. 189.
 500 100. 102. 116. 118. 132. 161.
 400 capital goods 100. 104. 104. 99. 130. 162.


tower corporation subsidiaries statements towerco ghana purchase price $ 430 million $ 220 million 51% % stake.
 mtn ghana anchor tenant.
 additional 400 sites operators five years.
 close initial tranche towers first half 2011 customary closing conditions.
 6.
 long-term obligations long-term financing arrangements december 31.
 commercial mortgage pass-through certificates 2007-1 $ 1750000
 revolving credit facility
 loan 325000
 facility
 short-term credit facility
 4. 50%. %
 5. 05%.
. 625%. %
.
. 25%. 25 %
. 0%. % convertible notes
. 25%. 25 % )
 payable capital leases
 5587388
 long term obligations -74896 -70521
obligations $ 5512492 $ 4141060
 commercial mortgage-through certificates series 2007-1 december 31 2007 company completed securitization transaction 5295 broadcast wireless communications towers two subsidiaries private offering $ 1. 75 billion commercial mortgage certificates series 2007-1.
 issued american tower trust i established american tower depositor sub owned subsidiary.
 assets recourse loan depositor american tower asset sub loan security agreement may 4 2007.
 borrowers entities holding secured towers.
 certificates issued seven classes a-fx-fl d.
 subordinated right payment.
 certificates issued terms identical loan except class a-fl certificates interest floating


diluted earnings per share calculation excludes stock options restricted stock performance units anti-dilutive.
 shares totaled. 6 million. 3 million. 2 million years 2017 2016 2015.
. 5 million shares restricted stock excluded.
.
 cash flow net cash interest income taxes 2015.
 capitalized $ 275305 $ 252030 $ 222088
 income taxes refunds $ 188946
 accrued capital expenditures december 31 2017 2016 2015 $ 475 million $ 388 million $ 416 million.
 non-cash investing activities 2017 additions $ 282 million oil gas properties.
 2016 $ 3834 million additions.
.
 operations crude oil natural gas exploration production.
 standards.
 chief decision maker.
eog chief operating involves chairman chief executive officer key officers.
 reviews areas united states trinidad kingdom china.
 considers united states segment.


.
 table summarizes cash securities.
 financing proceeds $ 39. 8 $ 93. 1
 capping closure post-closure obligations 61. 62. 4
 self-insurance 63. 65.
. 19
 restricted cash securities $ 172. 8 $ 240. 5
 own 19. 9%. interest company financial surety bonds obligations solid waste.
 cost.
 no.
 investee parent company surety bonds landfill operations $ 855. million $ 775. 2 million outstanding december 31.
 reimbursement obligations secured indemnity agreement investee letters credit $ 45. 0 million $ 67. 4 million.
 no debt obligations leases assurances.
 transactions obligations.
 third-party debt.
 contracts indemnification clauses.
 recorded financial statements.
 indemnifications relate to contingent events additional taxes adverse interpretation divestiture agreements liabilities activities.
 obligations financial position results operations cash flows.
 agreements with property owners guarantee value property adjacent to landfills.
 agreements varying terms.
 obligations financial position results operations cash flows.
 business activities statutory regulatory framework.
 regulation waste management requires retain permits.
 permits subject to revocation modification denial.
 costs capital expenditures permits significant.
 revocation denial.
 republic services.
 notes financial statements


devon energy corporation subsidiaries financial statements 2014 reserves table changes reserves 2011.
.
 reserves december 31 2010 411 831
 extensions discoveries
 revisions due prices -2
 other price -56
 conversion reserves -68 -62 -130
 reserves december 31 2011 403 379 782
 devon 782 reserves.
 6% 6 % decrease 2010 26% 26 % reserves.
 drilling activities increased reserves 148 conversion 130 16% 16 % 2010 reserves developed reserves.
 revisions other price decreased 51 evaluation.
 onshore dry-gas areas five.
 largest revisions-gas areas carthage east texas barnett shale north texas.
 reserves jackfish operations.
 reserves 367 396.
schedules jackfish reserves controlled by processing plants 35000 barrel capacity.
 steam capacity-oil ratios air quality.
 reserves undeveloped five years.
 development schedule extends 2025.
 2011 2014reserves decreased 21 mmboe lower gas higher oil prices.
 royalty burden reserves.
 2010 2014reserves increased 72 mmboe prices higher oil prices.
.
 43 barnett shale 22 rocky mountain area.
 2009 2014reserves increased 177 mmboe higher oil prices lower gas prices.
.
 2008 331 reserves not proved.
 higher prices proved december 31 2009.
 lower gas prices reserves 116 mmboe.
.
 dry gas regions.
 drilling development barnett shale.