2016 2015 revenue fuel expenses power expenses regulatory charges.
 analysis change net revenue 2015.
.
 2015 net revenue $ 696.
 retail electric price.
 volume/weather.
 wholesale revenue -2.
 reserve equalization.
.
 2016 net revenue $ 705.
 retail electric price variance $ 19. million annual increase billing cycle 2016 storm damage rider.
 volume/weather variance increase 153 gwh 1% electricity usage industrial usage less weather residential commercial sales.
 industrial usage expansion pulp paper increased demand wood products.
 net wholesale revenue variance entergy mississippi exit system agreement 2015.
reserve equalization revenue variance entergy mississippi exit variances operation maintenance expenses decreased $ 12 million fossil-fueled generation lower service costs scope plant outages $ 3. 6 million storm damage provisions.
.
 offset increase $ 4. 8 million energy efficiency $ 2. 7 million compensation benefits costs higher incentive compensation accruals.
 entergy mississippi.


1a.
 risk factors investment securities.
 materialize business financial condition results operations trading price shares decline.
 business fluctuations financial markets investment losses.
 disruptions public debt equity markets losses investment portfolio.
 financial markets improved since 2008 could deteriorate.
 disruption market sectors energy sector.
 declines losses results operations equity business insurer financial strength debt ratings.
 catastrophic events.
 exposed to unpredictable catastrophic events weather natural catastrophes acts terrorism.
 reduction operating results inhibit dividends meet interest principal obligations.
 past five years pre-tax catastrophe losses net reinsurance.
.
.
.
.
.
 losses from future catastrophic events could exceed projections.
 projections strategic underwriting tool.
use loss projections estimate catastrophe losses decide retrocessional coverage limit losses.
 projections approximations losses exceed projections adverse effect financial condition results operations.


retail hnw investors-term asset class region 2012 emea asia-pacific.
 equity 94805 53140
 fixed income 121640
 multi-asset class
 alternatives
 long-term retail $ 298024 77699 27761 403484
 serves investors accounts funds unit trusts private investment funds.
 long-term assets $ 403. 5 billion up 11%. 2011.
 net inflows $ 11. 6 billion augmented market valuation improvements $ 28. 3 billion.
 investors intermediaries broker-dealers banks trust companies insurance advisors.
 mutual funds $ 322. 4 billion 80% remainder private funds accounts.
product mix diversified 41% long-term aum equities 34% fixed income 23% multi-asset 2% alternatives.
 active products.
 client base diversified 74% long-term aum 19% emea 7% asia-pacific.
.
 retail long-term inflows $ 9. 8 billion driven.
 sector specialty fixed income equity.
 broadened distribution funds $. billion.
.
 alternatives $ 5. billion threshold.
 blackrock municipal target term trust $ 2. 1 billion largest municipal fund industry since 2007.
 leading.
 manager managed accounts second closed-end fund manager top-ten long-term open-end mutual.
 retail inflows $ 1. 8 billion fixed income inflows $ 5. 2 billion.
 demand risk-off instability de-risking.
 equity net outflows $.9 billion sector equity strategies uncertainty.
 international luxembourg cross-border blackrock global funds strategic funds $ 83. 1 billion $ 2. 4 billion retail funds.
 67 funds 35 jurisdictions.
 60% rated s&p.
 third largest cross border fund.
 five largest fund innovative offerings natural resources european equity asian equity income.
 relationships global investment expertise local regulations.


five-year stock performance graph illustrates shareholder return snap-on common stock since december 31 2008 dividends reinvested.
 compares snap-on performance standard poor 500 stock index peer group.
 snap-on shareholder return fiscal year 500.
 2008 100.
 111. 127. 126.
 153. 169. 145.
 140. 165. 148.
 223. 195. 172.
 2013 315. 265. 228.
 $ 100 invested december 31 2008 dividends reinvested.
 fiscal year ends saturday 31 31.
 peer group stanley black & decker. danaher emerson electric. genuine parts newell rubbermaid. pentair. spx corporation.
.
 s&p


2012 $ 50. million loan collateralized land buildings tenant improvements corporate headquarters.
 seven year term maturity december 2019.
 interest one month libor margin 1. 50%. prepayment without penalty.
 includes covenants events default credit agreement.
 requires approval property transfers.
 2016 outstanding balance $ 40. million $ 42. million.
 average interest rate 2. 5%. 0%. years.
 scheduled maturities debt.
 2020 2021
 2022 interest expense $ 34. million $ 26. 4 million 14. 6 million years 2017 2016 2015.
 deferred financing costs bank fees capital built-to-suit lease interest.
 amortization deferred financing costs 1. 3 million. 2 million. million 2016 2015.
company monitors financial health lenders credit long term debt facilities instability lenders.
.
 company leases warehouse office brand factory stores equipment.
 leases expire through 2033 excluding extensions rental adjustments.
 table lease agreements brand stores contingent rent future sales payments maintenance insurance real estate taxes.
 schedule future minimum lease payments non real property leases december 31 2017


securities returned 10% annually.
 debt securities returned 6% ( 6 % annually.
 application returns to plan 2019s allocation ranges equities bonds produces 7. 25%. and 8. 75%. point reference.
 plan 2019s returns current economic environment.
 recent returns not reliable indicators future returns.
 annual returns vary returns 2012 2011 2010 +15. 29%. 11%. 87%. selected assumption represents estimated long-term average returns.
 examine assumption other companies pension investment strategies determinations.
 data informs process qualitative judgment future investment returns.
 expected long-term return on plan assets pension cost 2012 7. 75%. same 2011.
 expected long-term return to 7. 50%. pension cost difference expected returns returns accumulated amortized to pension expense future.
percentage point difference return causes expense $ 8 million.
 pretax pension expense $ 73 million 2013 $ 89 million 2012.
 decrease reflects favorable returns assets 2012 lower discount rate table effects pension expense changes assumptions 2013 expense baseline.
 table 27 pension expense analysis change increase 2013.
. 5%. 5 % decrease discount rate
. decrease long-term return assets
. 5%. 5 % increase compensation rate
 impact changing assumption assumptions.
 pension plan contribution requirements not sensitive actuarial assumptions.
 investment performance required contributions.
 law pension protection act 2006 limits minimum maximum contributions.
 2013.
 maintain other defined benefit plans less effect nonqualified supplemental retirement plans employees financial.
.


.
 junior subordinated debt securities issued march 29 2004 $ 329897 thousand 6. 2%. securities may 24 2013.
 incurred pre-tax expense $ 7282 thousand amortization capitalized issuance costs securities.
 interest expense.
 2014 2013 2012
 interest expense
 guarantee payment obligations.
.
 reinsurance trust agreements subsidiaries investments security assumed losses non-affiliated ceding companies.
 december 31 2014 total deposit trust accounts $ 322285 thousand.
 april 24 2014 two collateralized reinsurance agreements kilimanjaro bermuda reinsurer catastrophe reinsurance coverage.
 multi-year storm earthquake events.
 first agreement $ 250000 thousand reinsurance coverage storms southeastern united.
second agreement provides $ 200000 thousand storms southeast mid-atlantic northeast united states puerto rico earthquakes.
 november 18 2014 company collateralized reinsurance agreement kilimanjaro.
 multi-year covers earthquake events.
 $ 500000 thousand earthquakes united states puerto rico canada.
 kilimanjaro financed catastrophe bonds investors.
 april 24 2014 issued $ 450000 variable rate notes.
 november 18 2014 issued $ 500000 notes.
 proceeds held reinsurance trust invested us government funds rating.


indemnification repurchase claims settled make-whole payments repurchases negotiate pooled settlements investors.
 repurchase loans consummation indemnification repurchase exposure investor.
 first second-lien mortgage balances unresolved settled claims associated with sold loans correspondent lender broker origination channels.
 settled recourse to lenders brokers third-parties. appraisers.
 determine ability pursue recourse file.
 historical recourse recovery rate insignificant impacted by inability parties. factors.
 origination sale residential mortgages ongoing business management assesses need indemnification repurchase liabilities.
 establish indemnification repurchase liabilities for estimated losses first second-lien mortgages expected loans.
first second- lien mortgage portfolio established indemnification repurchase liability investor sale agreements claims demand patterns estimate future claims.
 repurchase liability breaches representations warranties factors borrower performance unresolved repurchase claims future repurchase claims rescission potential ability cure defects estimated severity loss repurchase loan collateral make-whole settlement indemnification.
 note 24 commitments guarantees financial statements.
 tables unpaid principal balance repurchase claims vintage past five quarters.
 quarterly residential mortgage repurchase claims.
 2004 $ 11 $ 15 $ 31  $ 10
 2005 8 10 19 12 13
 2006 23  30  56  41 28
 2007 45 137  182 100  90
2008 7 23 49 17 18
 94 215 180
 38 52 42 33 29
 $ 132 $ 267 379 213 189
 94% 87% 87 91% 91 %
 pnc financial services group.


frequency orion global positioning gps environmental satellite-series mobile user system.
 profit space earnings united launch alliance services.
.
 2019 results.
 net sales $ 7958 $ 8347 $ 8161
 operating profit
 margins.
 backlog year-end
 net sales decreased $ million 5% 5 %.
 lower net sales $ 305 million commercial satellite fewer deliveries $ 290 million orion lower volume.
 offset higher net sales $ 130 million government satellite increased volume $ 65 million strategic defensive missile programs increased volume risk.
 increase higher volume aehf lower volume goes-r muos sbirs.
 profit decreased $ 38 million 4% 4 2012.
decrease profit $ 50 million orion $ 30 million government satellite offset higher equity earnings joint ventures $ 35 million.
 lower risk retirements muos gps offset sbirs aehf.
 profit 2013 $ 15 million restructuring.
 $ 15 million lower.
 sales increased $ 186 million 2%.
 higher sales $ 150 million increased commercial satellite deliveries $ 125 million orion higher volume risk retirements $ 70 million increased volume defensive missile programs.
 lower net sales $ 105 million government satellite programs volume $ 55 million nasa external tank program.
 profit increased $ 20 million 2%.
 higher profit $ 60 million commercial satellite increased deliveries reserves $ 40 million orion higher risk retirements increased volume.
increases lower profit $ 45 million volume retirements government satellite programs $ 20 million nasa tank program ended space shuttle 2011 $ 20 million lower equity earnings launch offset contract cost united space alliance.
 adjustments $ 15 million higher 2012.
 $ 300 million 29% 29 % profit.
 ula usa.
 atomic weapons establishment joint venture $ 265 million $ 285 million 24% 24 % 27% 27 % profit.


issue debt securities preferred stock common stock warrants share contracts units without limit.
 sold offerings size price terms determined sale.
 emerson financial structure flexibility strategic objectives.
 cash operations acquisitions growth.
 september 30 2017 $ 3. 1 billion cash held outside.
 primarily asia $ 1. 4 billion income taxes available repatriation.
 repatriated cash subject.
 federal income taxes credits.
 repatriates non.
 cash earnings provides.
 income taxes.
 funding requirements funds needs cash flow resources short long-term debt capacity backup credit lines.
 amounts due less 5 years long-term debt interest $ 5342 428 1434 966 2514.
 less than 1 1 - 3years 3 - 5years

 long-term debt interest $ 5342 428 1434 966 2514
 operating leases 536 171 206 80 79
 purchase obligations 746  71 14
 total $ 6624  1254 1711 1060 2599
 obligations inventory purchases.
 $ 2. 0 billion noncurrent liabilities note 19 pension postretirement plan liabilities deferred income taxes unrecognized tax benefits.
 notes 11 12 future benefit payments 14.
 exposed risk interest rates commodity prices uses derivative instruments forwards swaps options.
 derivatives trading.
 value.
 sensitivity analysis.
 interest commodity prices.
 dollar losses earnings value cash flows.
 limitations weaker.
 dollar earnings.
 lower commodity prices cost.
 notes 1 8 10.
accounting policies financial statements judgments assumptions estimates revenue expenses assets liabilities equity.
 note 1 accounting policies consolidated financial statements.
 judgments estimates.
 results differ estimates.
 revenue recognition recognizes revenue sale products records title risk loss customer collection assured.
 revenue recognized percentage-of- completion method.
 sales arrangements multiple elements judgment revenue.
 based vendor-specific evidence third-party evidence management estimate price.
 revenue recognized delivered elements performance control inconsequential perfunctory no unsatisfied contingencies.
 majority deliverables tangible products smaller portion installation service maintenance.
 criteria conditions recognizing revenue.


43. 3 million 2011 $ 34. 1 million 2010.
 retail segment 13% 15% 15 % net sales 2010.
 operating income $ 4. 7 billion $ 3. 2 billion $ 2. 3 billion 2012 2011 2010.
 increases higher net sales higher average revenue per store.
.
 sales $ 156508 $ 108249 65225
 $ 68662
 43. 9%. 9 %.
 margin 2012 43. 9%. 5%. 2011.
 increase driven lower commodity product costs higher sales improved leverage fixed costs.
 offset stronger.
.
 gross margin first half 2012 45. 9%. 9 % 41. 4%.
 primary drivers higher margin higher mix sales improved leverage costs.
gross margin second half 2012 affected by new products higher price reductions higher transition costs strengthening.
 dollar offset lower commodity costs.
 gross margin percentage 2011 40. 5%. 39. 4%. 2010.
 increase driven by lower commodity product costs.
 expects decreases margin gross margin 36% ( 36 % ) first quarter 2013.
 future declines due to higher mix new innovative products component cost increases.
 future strengthening.
 dollar could impact gross margin.
 gross margin forward-looking could differ results factors.
 gross margins downward pressure due product pricing pressures increased competition compressed product life cycles product transitions potential increases cost components manufacturing services shift sales mix lower gross margins.
 product pricing actions gross margins.
margins affected company 2019s product quality warranty costs demand.
 international operations financial results exchange rates.


hologic inc.
 consolidated financial statements acquisition.
 acquisition aeg material business combination no financial information.
 aeg specializes photoconductor materials electro photographic applications coating digital detectors.
 acquisition allows control detector manufacturing process supply chain improve manufacturing margins.
 combination manufacturing efficiencies research development new detector products.
 privately held warstein manufacturing operations china united states.
 purchase price $ 31300 $ 24100 cash 110 shares hologic common stock $ 5300 $ 1900 acquisition fees expenses.
 determined fair value shares eitf issue.
 99-12.
 110 shares subject contingent put options holders resell shares one year closing price stock below threshold.
 repurchase price closing.
 maximum obligation put options $ 4100 if option closing price maximum threshold price.
shares subject put option september 30 2006 stock price minimum value.
 acquisition one-year eur 1700 $ 2000 usd payable cash 2006 earnings amount.
 eitf issue.
 contingent consideration additional purchase price.
 goodwill increased.
 purchase price.
 net assets acquired may 2 2006 $ 23700
 research development 600
 technology
 customer relationship 800
 trade name 400
 deferred income taxes
 goodwill
 estimated purchase price $ 31300
 revised form 10-q june 24 2006 net asset deferred income tax liability goodwill.


agency long-term debt ratings february 16 2007 ba3 negative investors standard fitch.
 downgrade credit ratings affect access capital stringent covenants higher interest rates indebtedness.
 contractual obligations estimated obligations december 31 2006 effect liquidity cash flow future.
 2007 2008 2009 2010 2011
 long-term $ 2. $. 257. 240. 500. 1247. 2251.
 interest payments 122. 116. 107. 93. 75.
 non-cancelable operating lease obligations 292. 265. 237. 207. 181. 861. 2045.
 acquisition 47. 34 109
. $ 400. repurchase cash march 2008.
 mature 2023.
structured acquisitions with contingent purchase price obligations reduce risk negative future performance.
 payments contingent performance targets conditions subject revisions earn-out periods.
 note 18 financial.
 not included obligations pension postretirement benefit plans.
 funding policy contribute minimum funding requirements additional status.
 returns market interest rates voluntary contributions.
 declines interest rates status.
 contribute domestic pension plans contribute $ 20. 6 foreign pension plans.
 not included deferred tax obligations uncertain.
 interest rate swap agreements contracts mitigate foreign exchange volatility.
 2005 terminated long-term interest rate swap agreements $ 350. 25%. senior unsecured notes $ 150. 25% notes.
 net cash receipts $ 1. 1  offset interest expense.
 entered foreign currency transactions.
 requirements.
changes value forward contracts recorded income expense.
 december 2006 2005 contracts $ 0. 2 $ 6. 2  fair value negligible.
 4. 50%. notes two derivative instruments. 25%. stock one derivative instrument.
 fair value december 2006 negligible.
 interpublic group companies.
 subsidiaries financial condition results operations 2014 amounts millions share


entergy corporation subsidiaries new orleans securitization bonds hurricane isaac 2015 city council issued financing order bonds hurricane isaac storm restoration costs $ 31. 8 million carrying costs storm recovery reserve $ 63. 9 million $ 3 million up-front financing costs.
 july 2015 entergy new orleans. issued $ 98. 7 million storm cost recovery bonds.
 coupon 2. 67%. maturity june 2024.
 principal due principal payments five years $ 11. 4 million 2016 10. 6 million 2017 2018. 2 million 2019. 6 million 2020.
 purchased storm recovery property.
 regulatory asset balance sheet.
 creditors recourse assets revenues.
 no payment obligations recovery charge collections.
texas bonds hurricane rita 2007 issued financing order $ 353 million hurricane reconstruction $ 6 million transaction costs offset $ 32 million deferred income tax benefits.
 june 2007 gulf states reconstruction funding wholly-owned issued $ 329. 5 million senior secured transition bonds.
 a-1. 51%. 51 % due october 2013
 a-2. 79%. 79 % october 2018
 a-3. 93%. 93 % june 2022
 payments five years $ 26 million 2016 27. 6 million 2017 29. 2 million 2018. 9 million 2019 32. 8 million 2020.
 2016 tranche a-2. 2017 4 million a-3.
 2018-2020.
 purchased entergy texas transition property right recover.
transition property regulatory asset on entergy texas balance sheet.
 creditors to assets revenues funding.
 entergy no payment obligations to funding except transition charge collections.


american tower corporation subsidiaries financial statements 2014 3.%. convertible notes. due august 15 2012. mature august 15 2012 interest payable semi-annually february 15 august 15.
 3. notes convertible maturity redemption repurchase shares company common stock conversion price $ 20. 50 per share adjustment.
 change holders. repurchase. cash price equal 100% principal amount.
 change holders convert notes conversion rate adjustment additional shares common stock.
 redeem. notes after august 20 2009 initial redemption price 101. 125%. principal amount decline after august 15 100% principal amount 2012.
 3. notes rank equally company 2019s senior unsecured debt obligations revolving credit facility subordinated future indebtedness obligations subsidiaries.
 fundamental change control.convert receive shares settled cash.
 embedded derivative.
 133 fair value december 31 2008 2007.
 record changes value amortize discount interest consolidated statement operations.
 outstanding debt. notes $ 161. 9 million $ 162. 2 million $ 344. 6 million. 3 million. 4 million discount.
 lease obligations $ 60. 1 million $. 2 million 2008 2007.
 interest 5. 4%. to 9. 3%. mature seventy years.
 value long-term debt five years.
 2009 1837
 2010 60989
 2011 1018
 1962822
 2013
 2305054
 cash obligations 4332366
 unamortized discounts premiums
 balance december 31 2008 $ 4333146


undistributed foreign earnings no.
 taxes indefinitely reinvested outside.
 lower tax rate 2010 due increase foreign earnings.
 taxes.
 september 25 2010 company had deferred tax assets $ 2. 4 billion liabilities $ 5. 0 billion.
 management believes forecasted income future reversals differences recover deferred tax assets.
 realizability deferred tax assets valuation allowance.
 internal revenue service audit federal income tax returns 2004 2006 proposed adjustments.
 contested adjustments appeals office.
 examining 2007 through 2009.
 audit issues prior 2004 resolved.
 tax settlement 2002 through 2003.
 subject to audits state local foreign tax authorities.
 provision for adjustments tax examinations.
 outcome tax audits.
 adjust provision income taxes.
capital table presents financial information statistics three years 2010 company had $ 51 billion cash equivalents securities increase $ 17 billion 2009.
 operating $ 18. 6 billion offset property $ 2 billion business acquisitions $ 638 million.
 securities portfolio highly rated securities minimum rating single-a.
 $ 30. 8 billion $ 17. 4 billion cash securities foreign subsidiaries.
 dollar-denominated holdings.
 balances working capital asset purchases liquidity requirements 12 months.
 cash equivalents securities $ 51011 $ 33992 $ 24490
 accounts receivable $ 5510 $ 3361
 inventories
 working capital $ 20956
 cash flow $ 18595


product offerings wholesale include womenswear childrenswear accessories home furnishings.
 brands 2014 2019s ralph lauren men 2019s distributed worldwide premier fashion retailers.
 major north america.
 latin america specialty stores.
 europe.
 licensed stores asia.
 club monaco products distributed department stores specialty stores.
 japan shop-within-shops premier top-tier stores women men's.
 greater china southeast asia mid top-tier department stores thailand philippines men 2019s 2019s.
 excess out-of-season products secondary distribution channels retail factory stores.
 table number location ralph lauren-branded products march 30 2013.
 4504
 asia
chaps-branded products sold domestically 1200 doors three key wholesale customers sales volume.
 2013 45% wholesale revenues macy 2019s.
 25% revenues.
 products sold sales forces.
 showrooms new york.
 regional showrooms boston milan paris london munich madrid stockholm.
 shop-within-shops.
 critical brand recognition merchandising differentiate presentation.
 include customized fixtures wall cases decorative items flooring.
 march 2013 20000 shop-within-shops ralph lauren-branded wholesale products.
 100 to 7400 square feet.
 share cost with customers.
 stock replenishment program.
.
 ship within two-to-five days order receipt.
retail march 2013 388 stores 3 million square feet 494 seven e-commerce websites.
 extension-consumer reach.


concession shop-within-shops.
 sell products online third-party digital commerce sites.
 wholesale business sales department stores products distributed shop-within-shops.
 segments reportable segments.
 non-reportable segments 7% fiscal 2018 net revenues club monaco products. canada europe lauren latin america royalty revenues global licensing alliances.
 structure business strategy performance.
 45% fiscal 2018 net revenues outside.
 note 19 revenues.
 wholesale business sells products globally upscale mid-tier department stores specialty stores golf pro shops.
 brand in-store product assortment presentation full-price sell-throughs.
 wholesale products sold over 12000 doors worldwide majority specialty stores.
 sold digital commerce sites.
 include apparel accessories home furnishings.
luxury brands ralph lauren distributed worldwide fashion retailers.
 north america wholesale business department stores specialty stores.
 europe.
 asia department stores products shop-within-shops.
 licensed stores latin america asia middle east.
 sell excess out-of products secondary distribution channels retail factory stores.
 table number wholesale doors primary channels march 31 2018 april 1.
 north america 6848 7018
 europe 4928 5690
 asia 341
 other non-reportable segments 109
 12226
 three key wholesale customers sales volume.
 2018 sales largest macy's.
 8% total net revenues.
 three largest customers 19% total net revenues 21% 2017.
 sales three north america.
products sold sales.
 showrooms new york.
 bologna geneva madrid munich panama paris.


2018 annual report five-year stock performance graph illustrates shareholder return snap-on common stock since 31 2013 $ 100 investment dividends reinvested quarterly.
 compares snap-on 2019s performance standard 500 industrials index.
 snap-on s&p 500.
 2013 100.
 2014 126. 77 109. 113.
 2015 161. 107. 115.
 2016 163. 127. 129.
 169. 61 153. 157.
 2018 144. 133. 150.
 fiscal year ends saturday december 31 december 31.


advance auto parts .
 subsidiaries financial statements 2013 december 30 2006 31 2005 january 1 2005.
 inventories lower cost last-in first-out method 93% inventories december 30 2006 2005.
 cost sales purchased inventories balance prior.
 costs inventory decreasing growth.
 cost replace inventory less lifo balances similar product.
 reduction cost sales $ 9978 2006 increase $ 526 2005 reduction $ 11212 2004.
 remaining inventories product cores non-consumable parts batteries valued first-in first-out method.
 merchandise costs passed returned.
 not subject frequent cost changes no difference lifo fifo valuation methods.
 capitalizes purchasing warehousing costs inventory.
 december 30 2006 31 2005 $ 95576 $ 92833.
inventories december 30 31 2006.
 fifo net $ 1380573 $ 1294310
 adjustments inventories lifo 82767
 $ 1463340 $ 1367099
 replacement cost december 30 2006 31 2005.
 inventory tracked perpetual inventory system.
 cycle counting program distribution centers stores.
 establishes reserves.
 excess obsolete inventories.
 risk obsolescence minimal excess inventory returned vendors.
 reserves less full credit prices below.
 reserves inventory $ 31376 $ 22825 december 30 2006 31 2005.
.
 property equipment stated cost less accumulated depreciation.
 maintenance repairs charged improvements capitalized.
 sold retired cost depreciation removed gain loss reflected consolidated statements operations.
land buildings furniture fixtures vehicles lives 2 40 years straight-line method.


table shows annual aircraft fuel consumption costs including taxes mainline regional operations 2018 2017 2016 gallons millions.
 average price per gallon expense percent total operating expenses.
 2018 4447 $. 23 $ 9896. 6%. 6 %
 2017 4352. 7510 19. 6%. 6 %
 2016 4347. 6180 17. 6%. 6 %
 december 31 2018 fuel hedging contracts.
 exposed fluctuations fuel prices.
 policy not enter hedge.
 prices fluctuated.
 predict future availability price volatility cost fuel.
 natural disasters.
 political disruptions wars economic sanctions governmental policy strength.
dollar foreign currencies cost petroleum products pipelines terminals speculation energy futures aircraft fuel production capacity environmental concerns unpredictable events fuel shortages distribution challenges fuel price volatility cost increases.
.
 risk business price aircraft fuel.
 high volatility increased prices disruptions results liquidity. demand revenues airline second third quarters greater first fourth.
 economic conditions fears terrorism fare initiatives fluctuations fuel prices labor actions weather natural disasters outbreaks disease impact.
 quarterly results not indicative historical results not indicative future results.
 airlines subject regulatory requirements.
 federal aviation administration regulatory.
 oversees codeshare agreements route authorities competition protection.
 antitrust division airline antitrust.


consolidated financial statements 2014 acquisitions recorded purchase method purchase price allocated assets acquired liabilities assumed estimated fair value.
 operating results included in consolidated statements.
 2008 acquired transactions rights.
.
 single point contact mastercard processing.
 acquired euroenvios money transfer.
.
 money.
 customer base branch locations.
 acquired money transfer branch locations united states.
 increase market presence dolex-branded money transfer.
 preliminary purchase price allocations acquisitions.
 $ 13536
 customer-related intangible assets 4091
 contract-based intangible assets 1031
 property equipment 267
 other current assets 502
 assets acquired 19427
 current liabilities -2347
 minority interest in equity subsidiary -486
 net assets acquired $ 16594
customer-related assets 14 years.
 contract-based 3 to 10 years.
 acquisitions not significant financial statements information.
 2008 acquired customer list merchant referral agreement $ 1. 7 million.
 $. 1 million expensed.
 remaining amortized 10 years.


entergy corporation subsidiaries management financial.
 settlement electric customers realize credits regulatory liability $ 107 million $ 66 million net-tax.
 costs amortized nine-year period december 2015.
 note 2 financial statements.
 volume/weather variance due favorable weather industrial usage offset weather residential sales.
 industrial usage expansion projects chemicals industry increased demand new customers.
 louisiana act 55 financing savings tax savings customers.
 tax savings 2010-2011 audit settlement louisiana act 55 financing storm costs hurricane gustav ike.
 note 3 financial statements settlement benefit.
 provision $ 23 million 2016 waterford 3 replacement steam generator offset $ 32 million 2015 uncertainty 3.
 note 2 financial statements.
 net revenue 2016 2015.
.
rhode island energy center -44
 nuclear volume -36
 fitzpatrick reimbursement agreement 41
 nuclear fuel expenses
 -4
 2016 net revenue $ 1542
 revenue wholesale commodities decreased $ 124 million due lower wholesale energy prices capacity prices average revenue per mwh higher fitzpatrick reimbursement agreement palisades vermont yankee capacity revenue.
 sale rhode island center.
 lower volume fleet more refueling outage days larger resupply options.


borrowings reflect proceeds senior notes 2015.
 liquidity capital resources.
 november 2015 repaid $ 1 billion. senior notes maturity.
 october adjustment quarterly dividend.
 capital requirements.
 additions property plant equipment significant cash.
 table capital expenditures operations 2015 2014 2013.
 north america e&p 2553 4698
 international e&p
 oil sands mining
 capital expenditures 2936
 additions property plant equipment $ 3476 $ 5160 4443
 reimbursements canada alberta capital.
 fourth quarter 2015.
 acquired 29 million shares $ 1 billion 2013 14 million $ 500 million.
 no share repurchases 2015.
.
 financial statements data 2013 23 purchases common stock.
june 10 2015 issued $ 2 billion unsecured senior notes 2022 600 million. 70%. 2020 $ 900 million. 85%. % 2025 $ 500 million. 20%. interest payable semi-annually december 1 2015.
 proceeds $ 1 billion. 90%. notes november 2 2015 remainder corporate purposes.
 2015 amended $ 2. 5 billion credit facility size $ 500 million $ 3. billion maturity 2020.
 two one-year extensions increase commitment $ 500 million.
 sub-facilities swing-line loans letters credit unchanged $ 100 million $ 500 million.
 fees borrowing options.
 liquidity cash equivalents capital market transactions revolving credit facility sales non-core assets.
 working capital issue commercial paper. billion. debt equity securities.
alternatives short long liquidity operations near long funding requirements capital spending dividend payments defined benefit contributions debt maturities.
 economic conditions commodity prices business factors affect operations markets.
 downgrade credit ratings impact cost capital increase interest rate fees unsecured credit restrict commercial paper market letters credit collateral


vertex pharmaceuticals financial statements.
 altus investment held 450000 shares redeemable preferred stock not convertible redeemable $ 10. 00 per share dividends $ 0. 50 per share since 1999.
 restricted trading securities six months.
 sold 817749 shares common stock $ 11. 7 million gain $ 7. 7 million august 2006.
 altus warrants derivative instruments financial accounting.
.
 third quarter 2006 altus warrants $ 19. 1 million unrealized gain $ 4. 3 million.
 fourth quarter 2006 sold warrants $ 18. 3 million loss $ 0. 7 million.
 gain $ 11. 2 million.
company 2019s policy assessed investment altus method adjustments write basis 2005 2006.
 basis value equity warrants altus $ 18. million december 31 2005.
.
 accrued expenses current liabilities.
 leases facilities equipment non-cancelable leases.
 leases through april 2018.
 square lease 2003 payments may 2003.
 obligation build laboratory office space.
 lease 2018 extend two ten years expiring 2038.
 occupies 120000 square feet kendall square facility.
 sublease arrangements remaining rentable footage april 2011 august 2012.
 note 201d.
 research development contract costs $ 57761 $ 20098
 payroll benefits
 professional fees
 $ 91359 42061
57761 20098 15832 fees 3848 91359 42061


analysis depreciation studies.
 changes estimated service lives depreciation rates implemented prospectively.
 group depreciation historical cost depreciable property retired replaced charged to accumulated depreciation no gain or loss recognized.
 historical cost assets estimated using inflation indices labor statistics estimated useful lives studies.
 indices selected correlate major costs asset classes.
 until monitor estimated service lives accumulated depreciation rates.
 determine accumulated depreciation deficient.
 deficiency amortized depreciation expense lives.
 retirements depreciable properties gain or loss recognized if retirement meets conditions unusual material varies significantly from retirement profile.
 gain or loss recognized land assets not railroad operations.
 asset capitalize costs use.
 assets self-constructed.
capital expenditures replacement track assets road properties performed employees track line expansion capacity projects.
 costs capital projects capitalized.
 direct costs material labor equipment.
 indirect costs capitalized construction.
 general administrative expenditures.
 repairs maintenance useful life safety efficiency.
 allocated statistical bases.
 expense repairs maintenance $ 2. 3 billion 2013. 1 billion 2012 $. 2 billion 2011.
 capital leases recorded net present value minimum lease payments value.
 amortization expense computed straight-line method estimated useful lives.
.
 accounts payable current liabilities.
.
.
.
 income taxes
 wages
 dividends
 casualty costs
 interest
 equipment rents
 accounts liabilities 3086


.
 company leases land facilities equipment software leases through 2057.
 agreements include renewal escalation clauses taxes insurance maintenance costs.
 rental expense $ 92. 3 million 2019 $ 84. 9 million 2018 $ 58. 8 million 2017.
 schedule rental payments long-term leases november 2 2019.
 2020 79789
 2021 67993
 2022
 2023 37673
 2024
 190171 448721
.
 commitments contingencies claims charges litigation contractual patents trademarks personal injury environmental product liability insurance employment benefits.
 no assurance.
 matters financial position cash flows.
.
 retirement plans subsidiaries savings retirement plans.
 plan eligible.
 employees.
 contributions 5% compensation.
 contributes pre-tax contribution 3% compensation.
expense contribution plans.
 employees $ 47. 7 million 2019 $ 41. 4 million 2018 $ 35. 8 million 2017.
 non-qualified deferred compensation plan allows management highly-compensated employees non directors defer compensation.
 salary bonus commissions director fees.
 company provides contributions equal 8% deferred contributions.
 non-qualified maintained rabbi trust.
 investments deferred compensation plan investments current prepaid expenses assets balance sheets.
.
 deferred compensation obligation represents accumulated deferrals earnings.
 liability current portion accrued liabilities balance sheets.
 unsecured general obligation.
.
 financial statements


declines cement agricultural products newsprint shipments offset increases.
 operating expenses 2006.
 compensation benefits $ 4457 $ 4526 4535
 fuel 3983 3104 2968
 purchased services materials 1902 1856 1756
 depreciation 1387 1321 1237
 equipment rents 1326 1368 1396
 840 733 802
 $ 13895 $ 12908 $ 12694
 operating expenses increased $ 987 million 2008.
 fuel price per gallon rose 39% expenses $. billion 2007.
 inflation depreciation cascade mudslide hurricanes expenses.
 savings productivity resource utilization volume.
 expenses increased $ 214 million 2007.
 higher fuel prices increased expenses $ 242 million.
 inflation depreciation.
productivity resource lower fuel consumption.
 wages taxes health welfare pension postretirement benefits incentive costs.
 productivity initiatives lower volume 4% decline workforce saving $ 227 million.
 wage inflation higher pension benefits expenses.
 operational improvements lower volume 1% decline saving $ 79 million.
 smaller workforce training costs.
 wage benefit inflation reductions higher salaries wages healthcare.
 locomotive gasoline.
 diesel fuel $ 3. 15 per gallon. expenses $ 1. billion.
 4% improvement fuel consumption $ 136 million savings


sales retail segment grew to $ 1. 185 billion 2004 from $ 621 million $ 283 million 2003 2002.
 increases new store openings 21 2004 25 2003.
 increase average revenue per store contributed strong sales 2004.
 76 stores annualized revenue per store $ 15. 6 million $ 11. 5 million 2003 $ 10. 2 million 2002.
 reported profit $ 39 million 2004 losses $ 5 million $ 22 million 2003 2002.
 attributable revenue net sales higher leverage on occupancy depreciation fixed costs.
 expansion investment in assets infrastructure lease commitments personnel operating expenses.
 capital expenditures $ 104 million 2004 total $ 394 million.
 2100 employees lease commitments $ 436 million.
 costs stores.
 affect.
 three fiscal years 2004.
sales $ 8279 $ 6207 $ 5742
 cost 6020 4499 4139
 gross margin $ 2259 $ 1708 $ 1603
 percentage 27. 3% 27. 3 % ). 5%. 5 % ). 9%. 9 % )
 margin declined 2004 to 27. 3%. 3 %. 5%. 2003.
 margin declined lower margin ipod ibook sales pricing actions macintosh higher warranty costs higher freight duty costs.
 offset direct sales 39% ( 39 % ) year-over-year increase higher margin software sales.
 gross margin pressure 2005 price competition ipod.
 air freight charges margins 2005.
.
 no assurance current margins targeted.
 pressure industry


equivalents include-liquid investments maturity three months less.
 accounts receivable carried invoiced amounts less bear interest.
 company estimates balance write-off collection trend rates.
 receivables circumstances conditions balance uncollectible.
 balances charged against allowance.
 includes expected return products credits $ 14 million $ 15 million $ 14 million december 31 2016 2015 2014.
 returns credit activity recorded sales reduction.
 table summarizes activity allowance doubtful accounts.
 millions beginning balance $ 75 $ 77 $ 81
 bad debt expense
 write-offs
 ending balance $ 68 $ 75 $ 77
 currency translations allowance returns credits.
 inventory valuations valued lower cost market.
.
 determined last-in first-out.
lifo inventories represented 40% 39% 39 % consolidated inventories december 2016 2015.
 legacy.
 acquired merger.
 inventory costs determined using average first-in-out methods.
.
 2015 improved standardized estimates inventory reserves product costing net pre-tax charge $ 6 million.
 $ 20. million inventory reserve calculations offset gain $ 14. 5 million capitalization cost components.
 2016 gain $ 6. million.
 reflected special gains charges.
 cost.
 dispensing systems cleaning sanitizing products dishwashing machines process control monitoring equipment.
 systems capitalized mass asset basis capitalized depreciated written off fully depreciated.
 capitalizes costs computer software.
 maintenance.
 renewals improvements capitalized depreciated.
 repairs maintenance.
retirement plant equipment cost depreciation removed gain recognized.
 depreciation charged operations 5 40 years buildings 3 20 machinery equipment 15 merchandising 7 software.
 allocation cost earnings benefits.
 depreciation expense $ 561 million $ 560 million $ 558 million 2016 2015 2014.


2013 limited subsidiaries contractual term 5. 7 years stock options outstanding 4. 3 years exercisable december 31 2010.
 total value $ 184 million outstanding $ 124 million 2010.
 fair value stock options 2010 2009 2008 $ 12. 09 $ 12. 95 $ 17. 60 .
 total options 2010 $ 22 million $ 12 $ 54 million.
 cash received stock options $ 53 million.
 4-year vesting period.
 grants stock non-management directors annual general meeting.
 granted market close price date grant.
 obligation deliver one common share vesting.
 share-based compensation expense portion cost unvested restricted stock 2006 2013.
 roll-forward stock years 2010 2009 2008.
 36248 38154 restricted stock awards granted non-management directors.
restricted stock.
 december 31 2007 3821707 $ 53.
 1836532 $ 59.
 -1403826 $ 50.
 -371183 $ 53. 75
 31 2008 3883230 $ 57.
 2603344 $ 39.
 $ 54. 85
 -165469 $ 51.
 31 2009 4873429 $ 48. 25
 2461076 $ 51.
 -1771423 $ 50.
 -257350 $ 47.
 december 31 2010 5305732 $ 48.
 awarded 326091 restricted stock units officers subsidiaries $ 50.
 333104 $ 38.
 223588 $ 59.
 2010 unvested units 636758.
 1-year vesting period non-management directors.
common shares non directors deferred six months after 2019 termination.
 2008 40362 units awarded.
 2010 deferred units 230451.
 espp employees purchase shares payroll deductions periods 85 percent fair value share.
 annual purchases limited shares


discloses purchases common stock fourth quarter 2017.
 shares purchased average price paid share plans dollar value.
 averageprice
 october 2017 515762 $ 77. 15 292145 223617 $ 1. 6 billion
 november 2017 2186889 $ 81. 21 216415 1970474 $ 1. 4 billion
 december 2017 2330263 $ 87. 76 2329465 $ 1. 2 billion
 5032914  $ 83. 509358 4523556 $ 1. 2 billion
 shares represent purchases fourth quarter 2017 open-market transactions stock-based compensation plans purchases employees stock options vesting restricted stock compensation transactions.
 september 21 2016 board directors authorized purchase up $ 2.stock 2016 no expiration.
 december 31 2017 $ 1. 2 billion.
 january 23 2018 board authorized purchase additional $ 2.


item 5.
 market common equity issuer purchases table presents quarterly high low share sale prices class common stock new york stock exchange 2005 2004.
 march 31 $ 19. 17
 june 30.
 september 30.
 december 31.
 march 31 $ 13. 9.
 june 30.
 30.
 december 31.
 march 9 2006 closing price common stock $ 29. 83 per share.
 march 9 2006 419677495 shares 687 registered holders.
 february 2004 shares b converted-for-one conversion event.
 shares c common stock converted.
 august 2005 amended charter eliminate class b c stock.
 equity compensation plans item 12 annual.
 never paid dividend common stock.
anticipate retain future earnings fund development growth business.
 indentures 7. 50%. senior notes due 2012. 125%. notes. prohibit paying dividends stockholders unless satisfy financial covenants.
 credit facilities indentures debt securities restrict subsidiaries direct distribution dividend payment limited liability company.
 subsidiaries pay cash dividends distributions no default.
. 25%. senior subordinated notes due 2011. prohibit subsidiaries paying dividends payments distributions unless covenants satisfied.
 indentures. 50%. 125%. contain restrictive covenants prohibit subsidiaries paying dividends payments distributions unless covenants satisfied.
 more information restrictions see note 7 consolidated financial statements annual report section 201cmanagement


deposits escrow funds trust.
 cash deposits assets.
 deferred compensation obligations cash compensation investment accounts.
 long-term liabilities.
 value based on market value accounts.
 mutual funds based market prices.
 utilizes fixed-to-floating interest-rate swaps fair-value hedges variable-rate debt.
 variable-to-fixed starting interest rate swaps interest cost debt.
 future cash inflows outflows fair value.
 contract terms credit risk interest rates market volatility.
 investments money market funds employee benefits.
 investments assets.
 leases leases facilities equipment.
 rental expenses $ 29 million $ 24 million $ 21 million 2016 2015.
 leases 25 5 years.
 renewal options one to five years.
minimum annual future rental commitment under operating leases non-cancelable lease terms next 5 years:.
 2018 $ 15
 2019 14
 2020 12
 2021 9
 2022 8
 65
 company has agreements with public entities 201cpartners joint ventures 201cpublic-private partnerships. constructed utility plant.
 transfer real property to partners for equal industrial development bonds state industrial development act.
 leased back total facilities including portions funded partners for 40 years.
 leases facilities funded payments to partners.
 ownership


maturities marketable securities.
 millions sale cost fair value
 1 year $ 25. 4 $ 25.
 equity securities.
 $ 25. 7 $ 28.
 cash equivalents pledged collateral derivative contracts.
 $ 0. 9 million receivable pledged foreign uncommitted line credit.
 fair value carrying amounts long-term debt $ 14169. 7 million $ 14268. 8 million.
 estimated market quotations discounted cash flows borrowing rates.
 debt level 2 liability fair value.
 risk management exposed market risks interest rates commodity prices.
 derivative transactions.
 commodity price risk.
 derivatives manage price risk ingredients costs grains oils dairy products.
 certainty future price commodities.
manage exposures through purchase orders contracts futures options over-counter options swaps.
 offset market conditions acquire inputs close planned cost.
 use derivatives commodity prices.
 hedge accounting.
 changes recorded in cost sales statements earnings.
 criteria cash flow hedge accounting instruments effective certainty future price commodities.
 performance gains losses reported in unallocated corporate items outside results until affects earnings.
 reclassify gain loss to profit effects without mark-to-market volatility.


litigating product liability claims.
 costs influenced factors cases filed results trials appeals law litigation strategy tactics.
 note 18 item 3.
 2014 2013 2012 defense costs $ 230 million $ 247 million $ 228 million.
 past future costs.
.
 2014 smokeable products shipment volume decreased 2. 9%. 2013.
 cigarettes shipment volume decreased. due industry decline offset retail share gains.
 2014 domestic cigarettes shipment volume decreased 3% 3 % industry cigarette volumes declined 3. 5%.
 shipments premium cigarettes. cigarettes volume. 2013.
 cigars volume increased 6. 1%. driven black mild.
 marlboro retail share increased. 2013.
 grew retail share. points offset share losses brands.
quarter 2014 pm usa expanded marlboro menthol 28 states eastern. menthol.
 black mild 2019s retail share 2014 declined. points.
 middleton expansion black mild dark tobacco blend.
 results smokeable products 2013 2012.
 revenues decreased $ million. lower shipment volume 1046 million higher pricing.
 income increased $ 824 million. higher pricing adjustment lower marketing research costs lower shipment volume million higher per unit settlement charges.
 2013 smokeable products shipment volume decreased. 1%. 2012.
 cigarettes shipment volume decreased. industry rate decline trade inventories offset retail share gains.
 2013 domestic cigarettes shipment volume 4%.
 shipments. shipment volume.
 middleton cigars shipment volume 2013 decreased 3. 2%.wholesale inventories retail share losses.
 marlboro 2019s share 2013 increased. point 2012 marlboro architecture.
 expanded distribution quarter 2013.
 retail share increased. points due gains marlboro l&m discount offset losses brands.
 l&m share discount segment declining 2012.
-made large cigars black mild 2019s retail share decreased. point competitive activity low-priced cigar brands.
 smokeless products grew income expanded margins.
 increased copenhagen skoal 2019s retail share 2013.
 table summarizes smokeless products shipment volume performance.
 copenhagen 448. 426.
 skoal 269.
 copenhagenandskoal 718.
.
 smokeless products.
 cans packs promotional excludes international volume.
 includes usstc usa smokeless products.
 new types packaging configurations equivalent mst can-for-can.
 one pack snus pouches equivalent one can mst.
. 2/25/15 pm


expand client relationships multi-solution partnerships.
 multidimensional service.
 leveraged solutions value cost savings improved.
 global diversification deploy resources global markets.
 revenues segment.
 2015
 ifs $ 4630 $ 4525 $ 3809
 gfs 4138 4250 2361
 466
 consolidated revenues $ 9123 $ 9241 $ 6596
 integrated financial solutions north american bank savings institutions processing payment channel digital channels fraud risk management compliance lending wealth retirement corporate liquidity.
 clients banks credit unions commercial lenders government institutions merchants organizations.
 multi-year processing contracts recurring revenues.
 cash innovation integration information security compliance.
 solutions core processing ancillary applications.
core processing software applications banking processes clients deposit lending customer management central system record.
 market systems markets.
 offer services ancillary branch automation back-office support compliance support.
 digital solutions internet mobile ebanking.
 retail delivery applications operations processes interaction.
 focus consumer access market innovation multi-channel multi-host solutions integration seamless customer experience.
 leader mobile banking electronic banking internet mobile.
 corporate electronic banking solutions commercial treasury cash management multi-bank collection.
 systems provide accounting reconciliation system record.


mobility sales declined $ 535 million c-130j deliveries 12 2006 15 2005 lower volume c-5.
 combat aircraft sales increased $ 292 million higher f-35 f-22 volume reduced volume f-16.
 increased $ 83 million higher volume sustainment services.
 profit increased 21% % 2007.
.
 increased $ 326 million improved performance f-22 f-16.
 declined 77 million lower profit sustainment.
 increased 20% % 2006.
.
 $ 114 million higher volume f-35 f-22 improved performance f-16.
 f-35.
 mobility profit increased $ 84 million improved performance c-130j.
 backlog decreased 2007 sales volume f-35.
 offset increased orders f-22 c-130j.
 results.
 sales
 profit sales increased 6% 6 % 2007.
missiles control maritime sensors training.
 258 million volume fire control air defense tactical.
 ms2 sales 254 million undersea radar.
 pt&e increased 113 million volume platform integration.
 sales electronic systems increased 7% 7 2006.
 higher volume platform integration $ 329 million.
 ms2 sales increased 267 million.
 air defense $ 118 million.
 operating profit increased 12% 2007.
 profit increased 70 million higher volume improved performance platform integration.
 ms2 increased 32 million volume undersea tactical.
 increased 32 million volume fire control.
 profit increased 17%.
 profit increased $ 74 million ms2 higher volume surface undersea.
 pt&e profit increased 61 million improved distribution.
 higher volume air defense $ 52 million.
 backlog increased orders tactical missile fire control systems.


2013 ace limited subsidiaries excluded from adjusted weighted-average shares conversions impact securities anti-dilutive.
 31 2010 2009 2008 potential anti-dilutive share conversions 256868 1230881 638401 shares.
.
 ace foundation 2013 bermuda not-for-profit charitable causes bermuda.
 trustees ace management.
 maintains non-interest demand note receivable balance $ 30 million $ 31 million at december 31 2010 2009.
 receivable included assets.
 borrower proceeds investments bermuda real estate rented employees.
 income repay fund charitable activities.
 reports demand note principal value repay loan real estate.
.
 insurance subsidiaries subject laws regulations.
 dividends distributions loans cash advances without approval insurance.
no statutory restrictions payment dividends earnings bermuda subsidiaries minimum capital surplus satisfied by share additional paid-in capital.
.
 subsidiaries file financial statements statutory accounting practices.
 differs reinsurance contracts investments subsidiaries acquis expenses fixed assets deferred income taxes.
 statutory capital surplus.
 2010 2009 2008.
 dividends 2011 totals $ 850 million.
 combined statutory capital surplus net income bermuda.
 subsidiaries years 2010 2009 2008.
.
 statutory capital surplus $ 11798 $ 9164 $ 6205
 net income $ 2430 $ 2369 $ 2196 1047 904 818
 restructuring.
subsidiaries discount a&e liabilities increased capital surplus $ 206 million $ 215 million $ 211 million december 2008.
 subsidiaries prepare financial statements local laws.
 jurisdictions.
 licenses.
 reserves capital solvency tests.
 fines sanctions.


.
 commitments contingencies indemnified securities financing commitments standby letters.
 potential loss equal contractual amount collateral.
 summary contractual instruments at december 31.
 third parties.
 2006.
 indemnified securities financing $ 506032
 liquidity asset purchase agreements 35339
 unfunded commitments extend credit 17533 16354
 standby letters credit
 securities brokers.
 indemnify market failure.
 collateral funds not recorded statement.
 borrowers provide collateral equal 100% fair market value.
 revalued daily.
.
 government securities $ 572. billion $. 37 billion collateral indemnified securities december 31 2007 2006.
 82% % unfunded commitments extend credit liquidity asset purchase agreements expire year issue.
commitments expire represent future cash requirements.
 provide liquidity credit enhancements to asset-backed commercial paper programs 2018. note 11.
 issuances supported by liquidity asset purchase agreements backup liquidity lines of credit majority provided by us.
 provide direct credit support standby letters of credit.
 totaled $ 28. 37 billion at december 31 2007.
 standby letters totaled $ 1. 04 billion.
 deterioration performance shift asset risk from to us.
 conduits need back-up facilities repay maturing paper.
 acquire assets or make loans.
 book value protection to participants in postretirement 401 ( k ) plans.
 protection intermediate fixed-income securities safety.
 shortfall


united parcel service.
 subsidiaries financial capital lease obligations property plant equipment.
 defeased.
 value december 31 millions.
 vehicles $ 74 $
 aircraft 2289
 buildings 207
 amortization -849 -781 781
 $ 1721 $
 obligations payments due 2016 3005.
 agreements municipalities construction facilities.
 package supply chain freight operations.
 louisville kentucky dallas texas philadelphia pennsylvania.
 lease loan agreement debt obligations bonds 2022 bonds balance $ 149 million louisville regional airport authority facility.
 due january 2029 variable rate average interest rates 2015 2014. 03%.
 balance $ 42 million due november 2036 louisville regional airport authority.
bonds interest variable rate average rates 2015 2014. 02%. 05%
 2022 bonds balance $ 29 million dallas fort worth airport facility improvement corporation.
 due may 2032 cash flows swapped fixed 5. 11%.
 balance $ 100 million delaware county pennsylvania industrial development authority.
 due december 2015 variable interest. 02%. 04%.
 100 million bonds repaid full.
 2015 agreement delaware county pennsylvania authority bonds balance $ 100 million.
 due september 2045 variable.
 average interest rate 2015 0.%.
 pound sterling notes two tranches 2022 principal million. 50%. fixed rate due february 2031.
.
 million. 125%. rate due february 2050.
notes callable option redemption price 100% principal accrued interest payout discounted redemption benchmark.
 bond yield 15 points accrued interest.


financial statements 2012 $ 10. 2 million unrecognized compensation cost non-vested stock option compensation arrangements earnings 1. 8 years.
 performance awards share units rsus earned expensed fair value three years performance.
 revenue growth return assets.
 earn additional shares stock not 100% awards granted.
 share units three year performance.
 performance-based rsus one year two year vesting.
 fair value calculated market value common stock.
 fair value awards 2012 2011 2010 $ 60. 00  $ 55. 97 $ 41. 01 .
 vested performance share units 213000 shares 2012 54208 2011 no 2010.
 53990 shares paid 2012 2011 2010.
 units paid performance period approval board.
 95047 rsus granted 2012 earned end fiscal 2014.
company 2019s 2011 performance 159970 rsus granted earned fiscal 2013.
 169921 rsus granted earned vested fiscal 2012 end paid.
 employee retirements 2706 rsus earned vested paid first quarter 2011.
 changes non-vested performance awards 2012 price share.
-vested awards year 707 48. 87
 granted.
 vested.
 cancellations.
 end year 509.
 2012 $ 14. million unrecognized compensation cost non performance awards charge earnings. 6 years.
 stock appreciation rights issues sars.
 employees.
 exercise price market value share common stock contractual term ten years vest first second third anniversaries grant.
 cash payment excess fair market value common stock price.
effect dilutive shares stock paid cash not.
 100 snap-on incorporated


performance graph five-year return common shares standard 500 index national association real estate trusts equity index.
 $ 100 invested december 31 2009 common shares s&p 500 equity index dividends reinvested commissions.
 assurance performance trends.
 2013 2014
 vornado realty trust $ 100 123 118 128 147
 s&p 500 index 115 117 136 180
 nareit equity index 128 139 166


banking loans interest rate determined funding.
 interest rate lock commitments.
 irlcs loans derivatives recorded fair value earnings.
 estimates mortgage loan probability.
 excludes market value sale servicing rights.
 value $ 0. 06 million $ 0. 02 million liability at december 31 2007 2006.
 designates fair value closed loans mortgage forwards short treasury positions.
 economic hedges.
 marked-to-market hedge accounting.
.
 mark-to-market mortgage forwards net change irlcs instruments.
 fair value loans $ 1. 2 thousand $ 1. 7 million at december 31 2007 2006.
 interest rate risk.
 selling mortgages agreements.
 changes fair value included gain consolidated statement income.
irlcs loans mortgage forwards short treasury positions loss $ 2. 4 million 2007 gain $ 1. 6 million 2006 loss $ 0. 4 million 2005.
 activity counterparties exposure limits.
 interest rate swaps options represented value unrealized gains.
 $ 197. 5 million contracts unrealized losses 31 2007.
 pledged $ 87. 4 million mortgage securities collateral.
 exposure swaps options.
 america
 lehman brothers
 bank switzerland
 bank scotland
 morgan stanley
 salomon brothers


united parcel service .
 subsidiaries 8. 375%. debentures. two tranches 2022 $ 276 million maturity april 1 2030.
. 375%. interest rate until april 2020 7. 62%. final 10 years.
 redeemable.
 redemption price equal 100% principal accrued interest discounted date redemption benchmark treasury yield accrued interest.
 2022 $ 424 million maturity april 1  2020.
 not subject redemption.
 interest payable semiannually april october sinking fund requirements.
 interest rate swaps 2020 debentures variable libor-based.
 average interest rate 2016 2015 5. 43%. 04%.
 floating rate senior notes interest one three-month libor 45.
 average interest rate 2016 2015 0. 21%.
 callable after 30 years putable after 10 years.
 notes maturities 2049 2066.
 issued floating senior notes balances $ 118 $ 74 $ 35 million.
 interest three-month libor less 30 points mature 2066.
 property plant equipment.
 defeased.
 recorded value december 31.
 vehicles $ 68 $
 aircraft
 buildings
 amortization
 property equipment $ 1653 $ 1721
 obligations payments 2017 3005.


cash flow hedges 2013 changes fair value cash hedges earnings.
 december 31 2008 2007 reductions $ 4 million amortized september 30 2014.
 2007 no interest rate cash flow hedges.
 earnings impact derivative financial instruments pre-tax income 31 millions 2008 2007 2006.
 interest expense rate hedging
 fuel expense derivatives
 pre-tax income
 fair value debt instruments 2013 short long-term debt estimated market prices borrowing rates.
 december 31 2008 $ 247 million less carrying value.
 december 31 2007 exceeded $ 96 million.
 2008 2007 $ 320 million $ 181 million fixed-rate debt securities call provisions premiums.
 sale receivables 2013 railroad transfers accounts union pacific receivables.
.
upri sells 364-day undivided interest investors.
 total capacity $ 700 million $ 600 million at december 31 2008 2007.
 outstanding interest $ 584 million $ 600 million 2007.
 upri reduced interest decrease receivables.
 not included consolidated financial statements.
 supported by $ 1015 million $ 1071 million 2008 2007.
 interest retained $ 431 million $ 471 million.
 interest included.
 sold carrying value approximates fair value no gain loss.
 value fluctuate affected business volumes credit risks default dilution.
 receivables $ 6 million.
 credit rating below investment grade value investors discontinue facility.
 railroad services sold receivables servicing asset liability fees.
 collected $ 17. 8 billion $ 16.1 billion 2008 2007.
 used proceeds receivables.


2018 form 10-k 31 business environment summarizes factors affecting results operations financial condition liquidity position year december 31 2018 2017 2016 read consolidated financial statements notes.
 operate 120 countries helping find evaluate drill produce transport process hydrocarbon resources.
 revenue from sale products services major independent oil natural gas companies dependent on spending customers natural gas exploration field development production.
 spending driven by factors customers forecasts future energy demand supply access resources capital programs impact new government regulations expectations oil natural gas prices cash flows.
 oil natural gas prices summarized averages daily closing prices periods.
 2018 2017 2016
 oil prices $ 71. 34 54. 43.
.
.
.energy information administration brent spot price barrel cushing west texas price henry hub natural gas price million 2018 volatility oil gas market.
 first three quarters stability north american international markets.
 fourth quarter commodity prices dropped 40% customer uncertainty.
 large offshore projects positive investment decisions lng market improved increased demand.
 first large north american lng positive investment decision.
 spending brent oil prices increased.
 $ 71. 34/bbl. 2017. $ 86.
 first three quarters brent oil prices increased.
 fourth quarter declined 39% increased supply. global economic slowdown lower production cuts.
 north spending wti oil prices.
 $ 65. 23/bbl. 2017. $ 77.
 north america natural gas prices henry hub averaged $ 3.2018 6% increase.
 natural gas prices $ 6. 24/mmbtu january $ 2. 49 february.
.
 department energy natural gas storage 2018 2705 billion cubic feet. 421 bcf below 2017.


purchases sales equity securities chart discloses shares snap-on 2019s common stock sold by citibank.
 fourth quarter 2013 prepaid equity forward transaction agreement reduce market risk stock-based deferred compensation plans.
 impacted by price increase.
 citibank may purchase sell shares common stock.
 no expiration date transaction one year.
 snap-on purchase repurchase shares.
 chart discloses citibank 2019s sales snap-on common stock fourth quarter 2013 shares sold average per.
 09/29/13 to 10/26/13
 10/27/13 11/23/13
 12/28/13 $.
.
 annual report


rent $ 83. million $ 59. million $ 41. 8 million years 2015 2014 2013 non-cancelable lease agreements.
 contingent rent $ 11. million $ 11. $ 7. million 2014 2013.
 company promote brand products.
 sponsorship agreements collegiate professional supplier agreements athletic event sponsorships commitments.
 schedule future minimum payments sponsorship agreements december 31 2015 2015.
 2016 126488
 2017 138607
 2018 137591
 2019 98486
 2020 67997
 2021 289374
 future minimum sponsorship payments $ 858543
 minimum compensation obligations guaranteed royalty fees sponsorship agreements.
 performance incentives product supply obligations.
 product supply obligations.
 playing conditions sporting events decisions marketing.
costs to design develop source purchase products endorsers incurred not tracked from customers.
 company agreed to indemnify counterparties against claims infringement intellectual property.
 indemnification obligations apply misconduct bad faith.
 fair value indemnifications not material to financial position results operations.
 involved in litigation commercial intellectual property disputes trade regulatory claims.
 believes proceedings routine incidental business financial position results cash flows.
 new class common stock c common stock $ 0. 0003 1/3 per share four class action lawsuits brought


consolidated financial statements 2014 millions withholding taxes differences foreign subsidiaries reinvested outside.
 determine unrecognized deferred tax liability.
 fasb interpretation.
 table summarizes unrecognized tax benefits.
 $ 134. 8 $ 266.
 increases tax 22. 7
 decreases.
 settlements taxing authorities. -1.
 statutes limitation.
 increases tax positions 18. 19.
 end period $ 148. $ 134.
 unrecognized tax benefits $ 148. december 31 2008 $ 131. effective tax rate $ 17. adjustments tax accounts deferred.
 accrued interest penalties december 31 2008 2007 $ 33. 5 $ 33. 6 $. 7 $ 9. 2 2008 2007 consolidated statement operations.
accounting policy interest penalties unrecognized tax benefits income taxes consolidated statements.
 classification adoption fin 48.
.
 state local.
 tax authorities unrecognized tax benefits decrease $ 45. 0 $ 55. 0 next twelve months effective tax rate settlement tax examinations statutes of limitation.
 decrease related to income transfer pricing restatement adjustments.
 expect complete discussions with irs appeals division 1997 2004 next twelve months.
 settle uncertainties for 2005 2006.
 commenced examination.
 tax years under examination countries.
 additional taxes.
 established tax reserves adequate additional assessments.
 assess additional tax assessments adjust reserves.
 irs 2003 2004 income tax returns proposed adjustments taxable income.
 appealed items.
second quarter 2007 reversals tax reserves tax benefits $ 80. worthless securities deductions consolidated subsidiaries tax examination.


management 2011 2010.
 revenues investing lending $ 2. 14 billion $ 7. 54 billion.
 decline equity markets unfavorable credit markets debt risk.
 loss $ 517 million icbc gains $ 1. 12 billion losses.
 revenues $ 96 million debt securities loans.
 $ 1 billion unrealized losses lending offset interest gains.
 revenues $ 1. 44 billion consolidated investment entities.
 2010 gain $ 747 million icbc $ 2. 69 billion $ 2. 60 billion debt securities loans revenues $ 1. 51 billion.
 global equity markets public offerings.
 net gains debt securities loans tighter credit spreads favorable credit markets.
 operating expenses $ 2.67 billion 2011 20% lower 2010 due decreased compensation benefits expenses lower net revenues.
 offset impairment charges consolidated investments.
 pre-tax loss $ 531 million earnings $ 4. 18 billion 2010.
 provides services products managed accounts mutual funds asset classes institutional individual clients.
 wealth advisory services portfolio management financial counseling brokerage services high-net-worth individuals families.
.
.
 mutual funds hedge funds credit funds private equity funds managed accounts.
 third-party managers private bank deposits advisory relationships.
 self-directed brokerage accounts.
 generate fees net asset value performance inflows redemptions.
 incentive fees fund return benchmark performance targets.
 contingencies resolved.
 table operating results investment management segment.
 millions 2012 2011 2010
fees 4105 4188 3956
 revenues 416
 revenues 5222 5034
 expenses 4294
-tax earnings 928 1014
 sachs annual report


performance graph shows five-year stockholder return common stock october 31 2010 25 2015.
 compared return standard poor 2019s 500 index rdg semiconductor composite index.
 assumes $ 100 invested october 31 2010 common stock reinvestment dividends.
 rounded nearest dollar.
 represents past future.
 5 year return materials. s&p 500 index semiconductor composite index $ 100 invested reinvestment dividends.
.
 registered trademark standard poor 2019s financial services subsidiary mcgraw-hill companies.
 10/31/2010/28/2012
.
&p 500.
 semiconductor composite index. 170.
 2015 2014 declared quarterly cash dividends $ 0. per share.
2013 declared three dividends $ 0. 10 one $ 0. 09.
 dividends 2015 2014 2013 $ 487 million $ 485 million $ 456 million.
 dividends quarterly future financial capital requirements business conditions stockholders.
 10/31/10 10/30/11/28/12/27/13/26/14 10/25/15.
 s&p 500 semiconductor composite


millions 2010 2009 2008.
 cash operating activities $ 3547 $ 3173 $ 4421
 investing -319 -907
 financing -3363 -1476 -3938
 increased $ 374 million $ 3547 million 2010.
 increase working capital balances $ 570 million $ 187 million lower income tax payments.
 reduction cash $ 350 million defined benefit pension plan.
 increased contributions pension trust $ 758 million offset increase costs contracts.
 capital receivables inventories accounts payable customer advances costs.
 improvement decline receivable balances increase customer advances.
 offset decline accounts payable balances.
 higher collections electronic systems is&gs space systems.
 increase customer advances costs government commercial satellite programs space mobility offset decrease electronic systems.
decrease accounts payable timing.
 net cash decreased $ 1248 million $ 3173 million 2009.
 contributions defined benefit pension plan $ 1373 million increase operating working capital $ 147 million.
 lower income tax payments $ 319 million.
 decline cash due growth receivables increase inventories aircraft offset customer advances government satellite programs timing.
 expenditures facilities infrastructure equipment.
.
 $ 820 million 2010 $ 852 million 2009 $ 926 million 2008.
 operating cash flows annual capital expenditures.
 acquisitions divestitures.
 $ 148 million investments.
 paid $ 435 million 2009 $ 233 million 2008.
 proceeds $ 798 million sale eig $ 17 million costs.
 no material divestiture activities.
 increased short-term investments $ 171 million $ 279 million 2009.
financing share activity dividends 2009 2008 repurchased 33. 24. 29. common stock $ 2483 million $ 1851 million $ 2931 million.
 2010. million $ 63 million paid january 2011.
 october approved new repurchase program $ 3. billion.
 timing.
 repurchased 11. 2 million shares $ 776 million december 31 $ 2224 million additional repurchases.
 terminated previous repurchase program.
 cash option exercises 2010 2009 2008 $ 59 million $ 40 million $ 250 million.
 1. 4 million. million.


.
 retirement defined contribution pension plan full-time shoreside employees minimum service.
 annual contributions based 2019 salaries years service not maximums.
 pension cost $ 13. 9 million $ 12. 8 million $ 12. 2 million years 2006 2005 2004.
.
 subsidiaries exempt states corporate tax international opera ships 883.
 tax expense not significant 2006 2005 2004.
 regulations 883 published august 26 2003 effective 31 2005.
 exemption narrowed scope activities international operation.
 sale air transportation transfers excursions cruise tours.
 subject.
 regulations reduced net income 2006 2005 $ 6. 3 million $ 14. million.
.
 estimated fair values.
 cash equivalents $ 104520 $ 125385
 long-term debt -5474988 -4368874
currency contracts net loss gain 104159 -115415
 interest rate swap agreements net receivable 8456
 fuel swap net payable
 long-term debt 5474988 4368874 net loss gain 104159 115415 rate net receivable 8456 fuel payable 20456 fair values factors assumptions.
 represent values instruments include expenses sale settlement.
 instruments not trading speculative.
 exposure currency contracts limited cost replacing contracts non-performance counterparties.
 select counterparties credit risks limit exposure.
 foreign currency contracts denominated primary currencies.
 cash equivalents approximate fair values short maturity.
 long-term values senior notes debentures esti mated quoted market prices.
 values other debt estimated discounted cash flow analyses market rates.
 currency current market prices.
market risk for fluctuations foreign currency exchange rates relates six ship construction contracts transactions.
 use foreign currency forward contracts mitigate.
 2006 foreign currency forward contracts $ 3. 8 billion maturing through 2009.
 contracts six ship contracts net unrealized gain $ 106. 3 mil lion.
 three ship contracts net loss $ 103. 4 million.
 other contract loss $ 7. 8 million.
 11% aggregate cost ships exposed to fluctuations euro exchange rate.
.
 notes consolidated financial statements_financials. 6/7/07 pm page


manufactures systems order backlog customer commitments.
 orders authorizations accepted shipment dates next 12 months contractual service revenue maintenance fees 12 months.
 backlog october 27 28 2012 millions percentages.
 silicon systems group $ 1295  55% 55 % ) $ 705  44% 44 %
 global services 591 25% 25 % 36% 36 %
 361 15% 15 % 13% 13 %
 energy environmental solutions 125 5% 5 % 115 7% 7 %
 $ 2372  100% 100 % $ 1606
 backlog not indicative sales changes delivery cancellation orders.
.
 delays reduction backlog business results.
 assembly test integration commercial parts components subassemblies systems.
implemented distributed manufacturing model in countries united states europe israel singapore taiwan assembly at customer sites.
 uses vendors supply parts assembly services.
 not always possible.
 key parts obtained from single.
 costs risks service interruptions by selecting qualifying alternate suppliers monitoring financial condition maintaining inventories qualifying new parts locating manufacturing operations close to suppliers customers.
 growth strategy requires development new products.
 investment in new products before demand.
 works with customers design systems processes technical production requirements.
 product development engineering organizations located in united states israel taiwan china.
 outsources rd&e activities india.
 support demonstration laboratories in united states china taiwan europe israel.
 investments in rd&e product development engineering last three years.billion 18 percent 2013 1. 2 billion 14 2012 1. 1 billion 11 2011.
 spent 14 percent rd&e five years.
 maintains automation materials research environmental control.


management 2019s discussion analysis jpmorgan chase co. form 10-k treasury cio overview responsible liquidity funding capital interest rate foreign exchange risks.
 risks from four business segments assets liabilities.
 objectives high- quality securities longer-term.
 use derivatives.
 note 5.
 manage cash position depositing central banks investing short-term instruments.
 liquidity funding risk risk management pages 95 2013100.
 interest rate foreign exchange risks market risk management pages 124 2013131.
 investment securities portfolio mortgage-backed securities.
.
 government securities obligations.
 corporate debt securities.
 december 31 2018 portfolio $ 260. 1 billion average credit rating aa+.
 note 10 portfolio.
income statement balance sheet december 31 millions 2018 2016 securities gains losses $ 395 78 132-sale 203449 219345 226892 31747 47927 51358 235197 267272 278250 228681 200247 236670 31434 47733 50168 260115 247980 286838 securities htm afs first quarter 2018.
 notes 1 10.
 december 31 millions 2018 2017 2016
 securities gains losses $ -395 $ -78 $ 132
 203449 219345 226892
 31747 47927 51358
 235197 267272 278250
 228681 200247 236670
 31434 47733 50168
 260115 247980 286838
 jpmorgan chase co.form 10-k treasury cio overview responsible firm 2019s liquidity funding capital interest rate foreign exchange risks.
 risks from four business segments balance assets liabilities.
-liability objectives high- quality securities longer-term.
 derivatives.
 note 5.
 manage cash position depositing central banks investing short-term instruments.
 liquidity funding risk liquidity risk management pages 95 2013100.
 interest rate foreign exchange risks market risk management pages 124 2013131.
 investment securities portfolio mortgage-backed securities.
.
 government securities obligations.
 corporate debt securities.
 december 31  2018 portfolio $ 260. 1 billion average credit rating aa+.
 note 10 portfolio.
income balance sheet december 31 millions 2018 2016 gains losses $ 395 78 132 203449 219345 226892 31747 47927 51358 235197 267272 278250 228681 200247 236670 31434 47733 50168 260115 247980 286838 securities htm afs first quarter 2018.
 notes 1 10.


management financial condition results operations 2013 corporate expenses increased $ 3. $ 140. 2012 salaries expenses higher base salaries benefits temporary help lower expenses office general expenses.
 liquidity capital resources financial data liquidity capital resources.
 2014 2013 2012
 net income adjusted operating $ 831. $ 598. $ 697.
 working capital -131. 131. -293. 293.
 non-current assets liabilities -30. 6. 4. -46.
 operating activities $ 669. $ 592. $ 357.
 investing -200. -224. 224. -210.
 financing -343. 343. 131.
 net income depreciation amortization intangible restricted stock non compensation loss early extinguishment debt deferred income taxes.
reflects changes accounts receivable expenditures billable assets accounts payable accrued liabilities.
 operating activities cash 2014 $ 669. improvement $ 76. 2013 increase net income offset working capital usage $ 121.
 generate second use first largest impacts first fourth quarters.
 capital usage impacted by media businesses.
 $ 592. increase $ 235. 2012 improvement working capital usage $ 283. offset decrease net income.
 impacted media businesses management.
 timing media buying affects cash.
 agencies pay production media costs.
.
 revenues affect accounts receivable expenditures billable accounts payable accrued liabilities.
 assets include cash accounts receivable liabilities.
 affected timing payments.
 annual cash incentive awards paid first quarter.
 activities cash capital expenditures acquisitions.
 $ 148.leasehold improvements.
 $ 67. acquisitions 2014 cash.


management jpmorgan chase. annual report credit exposure net fair value derivative receivables capture future variability.
 firm calculates three measures derivatives credit loss peak risk equivalent average exposure.
 incorporate netting collateral benefits.
 peak exposure extreme 97. 5%. confidence level.
 exposure risk derivative exposure loan.
 loss derivative counterparty.
 less extreme primary credit approval derivative transactions.
 avg expected fair value derivative receivables future collateral.
 metric pricing credit capital cva.
 three year avg exposure $ 37. 5 billion $ 35. 4 billion december 2014 2013 receivables net collateral $ 59. 4 billion $ 51. 3 billion 2014 2013.
 fair value derivative receivables incorporates credit quality counterparties.
cva based on firm 2019s avg counterparty credit spread derivatives market.
 primary components credit spreads new deal activity market environment.
 believes active risk management credit risk derivatives.
 wrong-way risk correlation between exposure credit quality.
 factors influence correlations.
 firm adjust cva avg.
 manages exposure credit derivative transactions interest rate foreign exchange equity commodity derivative transactions.
 graph shows exposure profiles derivatives portfolio 10 years dre avg metrics.
 exposure after first year no new trades.
 table summarizes ratings profile by derivative counterparty derivative receivables.
 scale based on internal ratings s&p.
 profile derivative receivables 2014 2013 december 31 exposure net collateral %.
december 31 millions
 aaa/aaa-/aa3 $ 19202 32% % $ 12953 25% 25 %
 a+/a1 a-/a3 13940
 bbb+/baa1-/baa3 19008 15220
 bb+/ba1 b-/b3 6384 6806
 ccc+/caa1 837 3415 7
 $ 59371 100% 100 % $ 51324
 prior period amounts revised current period.


fiscal 2013 asr financial institution repurchase $ 125 million common stock.
 payment $ shares march 30 2013.
 total shares delivered 2. 5 million average $ 49. 13 per share.
 repurchased retired 1. 1 million shares common stock $ 50. 3 million average $ 44. 55 per share commissions.
-based awards options restricted stock granted officers employees directors global payments.
 incentive plan.
.
.
 no further grants 2000 plan director stock option plan expired february 1  2011.
 no future grants 2000 2005 2011 plan permits grants equity employees officers directors consultants.
 7. 0 million shares common stock reserved.
table summarizes share-based compensation expense income tax benefit stock options restricted stock performance units tsr units shares employee stock purchase plan.
 2014 2013 millions.
 share-based compensation expense $ 21. $ 29. $ 18.
 income tax benefit $ -6. $ -7. -5
 grant share-based awards 201clong-term incentive plan. awards held in escrow released grantee satisfaction.
.
 vest over grantee employed vesting shares forfeited.
 until vested.
 granted before 2015 vests equal installments four anniversaries.
 during three-year service period.
 grant date fair value restricted stock based quoted market value recognized share-based compensation expense vesting period.
 long-term incentive plan.
 convert into common shares.
shares performance measures.
 target units market-based measures threshold set compensation committee.
 units converted after committee.
 2013 global payments.
 2015 10-k annual report


visa inc.
 financial statements 2014 participating securities unvested share-based awards non-forfeitable rights dividends restricted stock awards units performance-based shares.
 2007 equity incentive compensation plan authorizes grant non-qualified stock options restricted stock awards units performance-based shares employees non directors 59 million shares common stock.
 authorized unissued issued acquired.
 eip until common stock delivered restrictions lapsed unless terminated.
 no awards 10 years.
 compensation cost net forfeitures straight-line graded-vesting.
 forfeiture rate historical forfeiture data.
 2013 2012 2011 share-based compensation cost $ 179 million $ 147 million $ 154 million.
 cost immaterial 2011.
 eip expire 10 years vest three years subject earlier vesting.
2013 2012 2011 fair value stock option estimated grant black-scholes pricing model weighted-average assumptions.
 2012 2011 expected term 6.
 risk-free rate return. 8%. 8 %. 2%
 volatility 29. 3% 29. 3 % 34. 9% 34. 9 % 33. 4%. 4 %
 dividend yield. 9%. 9 %. 9% 9 %. 8% 8 %
 fair value option $ 39. $ 29. 65 27.
 peer companies comparable.
 zero.
 treasury bond rate term.
 company historical volatility.
 peer companies.
 weighting stock price information offering.
 volatilities 27% 27 % 29% 29 % ) 2013.
 2019s annual dividend rate date grant.


mastercard financial statements 2014 equity awards $ 30333 $ 20726 $ 19828 years 2009 2008 2007.
 income tax benefit 2009 $ 7545.
 additional paid capital balance $ 197350 $ 135538 $ 114637.
 2006 stockholders approved mastercard 2006 non-employee director equity compensation plan.
 deferred stock units director.
 100 shares common stock awards.
 2009 2008 2007 granted 7 4 8.
 fair value closing stock price new york stock exchange.
-date fair value $ 168. 18 $ 284. 92 $ 139. 27.
 vested grant settled shares stock fourth anniversary.
 administrative expense $ 1151 $ 1209 $ 1051 2009 2007.
 income tax benefit $ 410 $ 371 $ 413.
.
december 31 2009 future payments capital operating leases sponsorship licensing.
 2010 283987 25978 250749
 2011
 2012
 2013
 $ 638035 $ 51774 100557 485704
 capital leases interest $ 7929 net lease payments $ 43845.
 december 31 2009 $ 63616 future minimum payments leases accrued.
 rental expense office space $ 39586 $ 42905 $ 35614 2009 2008 2007.
 expense automobiles computer office equipment $ 9137 $ 7694 $ 7679.
 2003 mastercard purchased building kansas city missouri $ 23572.
 co-processing data center replaced data center lake success new york.
2003 mastercard kansas sale building equipment $ 36382 purchase municipal bonds same


mississippi.
 increased $ 16. million lower operation expenses higher revenues lower income tax rate depreciation amortization expenses.
 increased $ 17. million write-off regulatory assets nuclear generation joint stipulation mississippi public utilities higher depreciation amortization expenses higher taxes operation expenses lower revenue.
 note 2 statements nuclear generation.
 fuel gas power expenses regulatory charges.
 analysis change net revenue 2016 2015.
.
 2015 revenue $ 696.
 retail electric price.
 volume.
 wholesale revenue.
 reserve equalization.
.
 2016 revenue $ 705.
 retail electric price variance due $ 19. million increase revenues mpsc billing cycle 2016 storm damage rider.
 note 2 financial statements formula plan storm damage.
volume/weather variance due 153 gwh 1% electricity industrial usage offset less weather residential commercial sales.
 increase due expansion pulp paper increased demand new customers wood.


.
 morgan chase & co.
 2003 annual report commercial loss $ 917 million at december 31 2003 decrease 43% from 2002.
 credit quality loan reduction size portfolio.
 commercial expected loss $ 454 million 2003 decrease 26% from 2002.
 quality loan portfolio improving credit envi loss model.
 consumer expected loss $ 2. 3 billion at 2003 decrease 4% from 2002.
 consumer loan portfolio increased 10% collateralized products lower loss rates.
 residual component $ 895 million 2003.
 addresses uncertainties.
 $ 121 million increase addressed uncertainties commercial loan portfolio.
 commercial credit quality allowance declined residual component reduced.
 december 31 2003 20% total loan losses target range.
 positive economic credit quality residual components.
lending-related commitments risk loss credit-extension management computes loss residual commercial lending commitments.
 methodology similar commercial loan port folio modified maturities probabilities drawdown.
 allowance decreased 11% $ 324 million december 31 2003 improvement lending-related commitments.
 credit costs.
 year ended december 31 millions
 loan losses $ -30 $ 1491 $ 118 1579 2371 1589 4039
 lending-related commitments -47 2014 -39 309 292
 securitized credit losses 1870
 managed credit costs $ -77 $ 3361 $ 126 $ 3410 $ 2680 $ 3028 5770


duke realty corporation annual report 2009 evaluate development acquisition opportunities market outlook supply growth potential.
 future investments liquidity debt equity securities cash flow properties.
 management investment priorities growth.
 reduced new development activity core operations existing.
 liquidity recurring leasing expenditures real estate investments.
 summary recurring capital expenditures 2009 2008 2007 dividends distributions distribution requirements internal revenue code 1986 reit status.
 cash flow greater operating income.
 paid dividends per share $ 0. 76  $ 1. 93 $ 1. 91.
 expect distribute equal taxable earnings status additional amounts.
 distributions subject cash financial condition capital requirements.
 2009 six preferred shares outstanding.
 annual dividend rates 6. 5%. 375%. paid arrears.
2009 2007
 improvements 29321 36885 45296
 leasing costs 40412
 building improvements
 79054 74814


authorities challenge future tax positions.
 future tax rates affected by changes earnings differing rates tax laws including tax holidays incentives.
 taxes increase if holidays incentives not renewed tax rates regimes increased.
 tax subject to interpretation tax laws jurisdictions.
 taken tax positions based on.
 organize operate tax resident in united kingdom.
 assess adverse outcomes tax examinations.
 difficult reserves for uncertain tax benefits reflect outcome positions.
 no assurance taxing authority assess additional taxes.
 adverse effect on operations financial condition.
.
 no.
.
 owned leased 126 manufacturing sites 15 technical centers.
.
 smaller manufacturing sites offices warehouses engineering centers joint ventures investments.
 presence in 46 countries.
table shows regional distribution manufacturing sites segment north america europe middle east africa asia pacific south america.
 electrical architecture 32 34 25 5 96
 powertrain systems 4 8 18
 electronics safety
 39  48 33 6 126
 15 technical centers five north america middle east africa four asia pacific one south america.
 126 75 primarily owned 66 leased.
 review real estate portfolio strategies 2019 global plans operating expenses.
 portfolio future needs.
.
 subject actions claims suits government investigations proceedings defects breach contracts competition antitrust product warranties intellectual property personal injury employment.
 financial position results cash.
warranty matters ensure future costs believe reserves cover settlements.
 final amounts differ from estimates.


.
 bermuda re uk branch business subject taxation.
 bermuda bermuda operation uk taxation.
 if operations uk income tax financial condition results operations cash flow.
 ireland.
 holdings ireland re business subject taxation.
.
 annual reports 10-k quarterly 10-q current 8- k proxy statements amendments internet website. everestre. com securities exchange commission.
.
 risk factors investment securities.
 business financial condition results trading price shares decline.
 business fluctuations financial markets investment losses.
 disruptions public debt equity markets losses.
 year 31 2008 incurred $ 695. 8 million gains $ 310. 4 million unrealized losses.
 financial markets improved 2009 2010 deteriorate losses results operations equity business insurer financial strength debt ratings.
results affected by catastrophic events.
 exposed to unpredictable weather natural catastrophes terrorism.
 reduction operating results dividends meet obligations.
 catastrophe loss property exposures before reinsurance $ 10. million reinsurance.
 threshold $ 5. million.
 past five years pre-tax catastrophe losses reinsurance before cessions.
 571.
 2009 67.
 2008 364.
 2007 160.
 2006 287.


april 2015 joint venture saudi arabia.
 equity bridge loan until 2020 guaranteed repayment 25% share.
 venture partner guaranteed repayment.
 maximum exposure $ 100.
 noncurrent liability $ 67. 5 future equity contributions.
 air products sale equipment contract engineer construct industrial gas facilities saudi aramco.
 bank guarantees $ 326.
 party equity support agreement operations guarantee air separation facility trinidad 50%.
 maximum potential payments $ 30.
 extinguished 2024.
 2014 sold homecare business operations guarantee.
 maximum potential payment a320 million extinguished 2020.
 no equity contributions payments guarantees.
 not material.
 issued product warranties equipment sales.
 contracts terms warranty infringe third-party intellectual property rights.
 future costs not material financial statements.
expect guarantees warranties financial condition liquidity results operations.
 obligated future payments.
 2016 $ 917
 2017 117
 2018 63
 2019 55
 2020 54
 164
 $ 1370
 $ 390 long-term obligations feedstock supply hyco facilities.
 price related natural gas.
 long-term take-or-pay sales contracts matched feedstock obligations recovery price increases.
 financial condition results operations.
 obligations include product electric power natural gas pass-through contracts.
 commitments $ 540 additional plant equipment 2016.


mastercard financial statements 2014 company postretirement plan funding benefits payments.
 table summarizes expected net benefit payments through 2018 benefit payments subsidy receipts.
 2009 $ 2641 $ 2564
 2010 3139
 2011 3561
 2012 3994
 2013 4357 4188
 2018 25807 1269 24538
 company provides postemployment benefits former.
 employees.
 accounts severance expense.
 cost benefits.
 updates assumptions severance severance activity long-term trends.
 recorded severance expense $ 2643 3418 $ 8400  2008 2007 2006.
 accrued liability severance plan $ 63863 $ 56172 december 31 2008 2007.
.
april 28 2008 extended unsecured revolving credit facility 2006 additional year.
 expiration date april 26  2011.
 funding $ 2500000 april 27 2010 $ 2000000 final year.
 terms conditions unchanged.
 option.
 borrowings liquidity settlement failures limit $ 500000.
 facility fee 8 points $ 2030 annually.
 interest charged london interbank rate libor margin 37 points utilization fee 10 points borrowings exceed 50% commitments.
 fee cost contingent credit rating.
 upfront fees $ 1250 administrative fees $ 325 amortized three years.
 $ 2353 $ 2477 $ 2717 december 31 2008 2007 2006.
 no borrowings 2008 2007.
 majority lenders mastercard international.
 1998 issued ten-year unsecured notes fixed interest rate 6. 67%. per annum.
$ 80000 june


$ 66 million net-of-tax customer credits entergy louisiana settlement combination.
 note 2 financial statements.
 sale 583 mw rhode island state energy center gain $ 154 million $ 100 million net-of-tax $ 77 million 47 million-tax write-off regulatory charges waterford 3 replacement steam generator project.
 note 14.
.
 2016 2015.
.
 2015 net revenue $ 5829
 retail electric price
 credits
 volume
 act 55 financing savings obligation
 2016 net revenue $ 6179
 increase base rates entergy arkansas.
 new rates effective february 24 2016 cycle april 2016.
 interim base rate adjustment surcharge incremental revenue requirement february 24 march 31.
increase power block 2 union 2022 power capacity acquisition cost recovery entergy new orleans approved 2016 power block 1 2022 formula rate plan revenues entergy louisiana first-year revenue power blocks 3 4 2022 increase entergy mississippi approved july 2016 storm damage rider.
 note 2 financial statements rate.
 note 14 union power station purchase.
 louisiana business combination credits variance regulatory liability $ 107 million entergy 2015 gulf states louisiana.
 customers realize credits regulatory liability $ 107 million $ 66 million net-tax.
 corporation subsidiaries management


worldview-3 contracts james webb space telescope joint polar satellite system global precipitation-microwave imager weather forecasting antennas sensors joint strike fighter.
 earnings 2010 increased $ 8. 4 million fixed-price program performance higher sales offset program reductions.
 earnings down $ 14. 8 million programs reduced activity.
 shares qinetiq $ 10. 5 million $ 1. 8 million.
 services australian department defense.
 pretax gain $ 7. 1 million.
.
 96 percent sales 2010 94 percent 2009 91 percent 2008.
 backlog aerospace $ 989 million $ 518 million.
 increase worldview-3 joint polar satellite system contracts.
.
 proceeds $ 280 million.
 $ 15 million contingent consideration preliminary adjustments $ 18. 5 million quarter.
plastics packaging business five.
 plants polyethylene terephthalate polypropylene bottles customer contracts assets.
 1000 sales $ 635 million 2009.
 manufacturing plants ames iowa batavia illinois bellevue ohio california delran new jersey.
 research development operations broomfield westminster colorado.
 table operating results discontinued operations december 31.
 2010 2009 2008
 net sales $ 318. $ 634. $ 735.
 earnings operations $ 3. $ 19. $ 18.
 gain sale business.
 loss asset impairment.
 consolidation.
 gain.
 tax benefit.
 discontinued operations net tax -74. 4
 net charges plastics packaging manufacturing plants.
 note 2 financial statements.
charges consolidation activities estimates management from information.
 outcomes vary differences reflected in earnings consolidation gains losses.
 details activities costs note 5 financial statements.


item 5.
 market common equity issuer purchases table quarterly high low share sale prices common stock new york stock exchange 2010 2009.
 march 31 $ 44. $ 40.
 june 30.
 september 30.
 december 31.
 march 31 $ 32. $ 25.
 june 30.
 september 30 37. 29
 december 31.
 february 11 2011 closing price common stock $ 56. per share.
 397612895 outstanding shares 463 registered holders.
 paid dividend.
 future earnings financial condition restrictions law loan agreements debt service requirements capital expenditure requirements status.
 loan agreement revolving credit facility loan dividends covenants.
restrictions revolving credit term loan securitization item 7 annual report 201cmanagement financial condition results operations capital resources liquidity note 6 consolidated financial statements.