notes consolidated financial statements 5 2014income taxes first quarter 2008 company adopted fin 48.
 accounting retained earnings $ 11 million.
 interest penalties unrecognized tax benefits current liabilities.
 48 classifies interest penalties not cash non-current liabilities.
 total unrecognized tax benefits $ 475 million $ 209 million recognized effective tax rate.
 september 27 2008 total tax benefits $ 506 million $ 253 million effective tax rate.
 total tax benefits non-current liabilities.
 aggregate changes balance unrecognized tax benefits fiscal year 27 2008 policy interest penalties fin 48.
 accrued $ 203 million interest penalties.
 total $ 219 million classified non-current liabilities.
 recognized interest expense $ 16 million.
 subject taxation files income tax returns.
jurisdiction foreign jurisdictions.
.
 income tax years prior to 2002 closed.
 2002-2003 examined internal revenue service disputed issues taken administrative appeals.
 examining 2004-2006 years.
 company subject audits state local foreign tax authorities.
 years 1988 2000 open.
 management believes provision adjustments tax examinations.
 outcome tax audits.
 adjust provision income tax.
 unrecognized tax benefits 12 months.
 balance september 30 2007 $ 475
 increases tax 27
 decreases
 increases 85
 decreases settlements taxing authorities
 decreases expiration statute of limitations
 balance september 27 2008 $ 506


table provides information may 31 2014 shares company common stock issued under equity compensation plans.
 more information see note 11 consolidated financial statements.
 plan category number securities issued options warrants rights exercise price future issuance approved 766801 40. 85 8945694 not approved.
 plan category number securities issued weighted-average exerciseprice issuance
 plans approved 766801. 8945694
 not
 766801. 8945694
 information table includes shares common stock issuance option warrant under employee stock purchase plan 2011 incentive plan.
 977296 shares 2005 incentive plan 584004 shares 2000 long-term incentive plan.
 intend issue shares under 2005 2000.
13 2014 relationships transactions director independence incorporate transactions affiliates independence directors headings independence proxy statement 2014 annual meeting shareholders.
 item 14 2014principal accounting fees services incorporate heading reappointment auditors proxy statement 2014 annual meeting.


engineering plastics.
 founded 1987 leading producer pom south korea.
 venture celanese ticona 50% mitsubishi gas chemical company.
 10%.
 polyacetal ulsan compounding nylon pyongtaek participates polyplastics mitsubishi.
 world-scale pom facility nantong.
 polyplastics.
 leading supplier engineered plastics asia-pacific venture daicel chemical industries. 55% celanese ticona 45% 45 %.
 1964 producer marketer pom asia-pacific production japan taiwan malaysia china.
 fortron industries.
 producer polyphenylene sulfide automotive applications.
 1992 liability ticona fortron.
 kureha corporation.
.
 facility wilmington north carolina.
 combines sales marketing distribution compounding manufacturing celanese polymer kureha.
acetate.
 30% ownership three acetate ventures.
 nantong.
. kunming.
.
 zhuhai.
.
 china national tobacco corporation controls.
 30% cigarette production consumption largest fastest growing acetate tow products 2009 stanford economics.
 ventures leader acetate production supply cigarette producers.
 2009 expand acetate flake tow capacity nantong facility approval expansions 30000 tons.
 12 expansions earnings growth increased dividends.
 cash flow.
 $ 8 million expansions $ 9 million 2012.
 $ 12 million.
 second quarter year.
 cash dividends $ 78 million $ 71 million $ 56 million.
ownership china acetate ventures exceeds 20% account cost method accounting influence local government investment limitations involvement operations inability provide timely financial information accounting principles states.
 equity.
 hold indirect ownership infraserv groups germany industrial parks support tenants.
 table represents equity investments infraserv ventures december 31 2011.
 ownership %
 infraserv.
.
.


company december 31 2013 summarized.
 payments due 1 year 3 years 5 years after 5 years
 global headquarters leases $ 68389 $ 1429 $
 35890  11401 12045 5249 7195
 unconditional purchase obligations 3860  2872  988  2014
 uncertain tax positions interest penalties 933
 long-term obligations 35463 11140 17457 3780 3086
 obligations $ 144535  $ 27775 $ 39046 $ 17585 $ 60129
 september 14 2012 lease agreement canonsburg pennsylvania new headquarters.
 lease effective rent until january 1  2015.
 183 months.
 lease tenth year december 31  2025 landlord 18 months notice.
company lease headquarters expires december 31 2014.
 leases include noncancellable offices equipment.
 obligations software licenses long-term contracts network communication office maintenance services unrecorded 31 2013.
 $ 17. 9 million unrecognized tax benefits interest penalties liabilities.
 excluded.
 deferred compensation $ 20. million 250000 580000 2-3 90000 4-5 years contingent consideration $ 8. million pension obligations $ 5. 4 million foreign locations.


wireless providers beginning investments 3g data networks.
 ghana uganda voice data networks increasing demand.
 south africa carriers 3g data networks.
 mexico brazil networks deployed providers invest 3g data networks auctions investments 3g.
 chile peru colombia spectrum auctions drive investment nationwide voice 3g data networks.
 germany demand driven by government rural fourth generation network build-out tenant initiatives next generation wireless services.
 demand tower sites international markets coverage investing next generation data networks.
 rental management new site revenue growth.
 grew portfolio communications real estate acquisitions construction 8810 sites.
 international markets increased pass-through revenues expenses.
 evaluate opportunities larger communications real estate portfolios portfolio.
 new sites
international 1 7850 10000 6870
 majority sites acquired 2012 brazil germany india uganda 2011 brazil colombia ghana india mexico south africa 2010 chile colombia india peru.
 network development services revenue growth.
 rental management operations services revenue small percentage total revenues.
 tower-related services site acquisition zoning permitting structural analysis support site leasing addition new tenants equipment network upgrades.
 expenses.
 ground rent property taxes repairs maintenance security power fuel costs.
 exclude selling administrative development expenses aggregated.
 increase adding tenants modestly year-over-year.
 leasing additional space new tenants provides cash flow.
 incur additional expenses presence areas portfolio.
 profit margin growth impacted addition new tenants diluted development activities.


ordinary course business geologic trends prospective economics allowed lease acreage expire may allow additional.
 production not established leases undeveloped acreage next three years.
 plan continue terms licenses concession areas or retain leases operational administrative actions.
 undeveloped acres expiring 2013 2014 2015
. 189 130
 canada
 north america
.
 europe
 worldwide 1294 441
 marketing midstream e&p segment marketing transportation liquid hydrocarbon natural gas production.
 sale commodities storage production.
 balance sales storage transportation supply optimization purchase commodities third parties.
 commitments flexibility product types delivery points.
 own operate gathering systems midstream assets production areas.
 evaluating investments midstream infrastructure third-party systems.
committed deliver crude oil natural gas contracts.
 eagle ford liquid hydrocarbon production.
 54 mbbld mid-2017.
 production rates reserves monetary shortfall penalty third-party.
 20 percent interest aosp oil mining joint venture alberta.
 produces bitumen upgrades crude.
 mining extraction assets near fort mcmurray alberta muskeg river jackpine mines.
 capacity 255000 51000 barrels bitumen per day.
 base expansion fort saskatchewan northeast edmonton alberta.
 leases 216000 43000 acres.
 leases royalties payable alberta.
 five year aosp expansion 1 completed 2011.
 jackpine mine production 2010 oil sands ore fourth.
 upgrader expansion second quarter 2011.
crude oil sales 2012 47 mbbld royalty production 41 mbbld.
 phase debottlenecking approved 2011 2013.
 expansions approvals 2014.
 aosp operations oil sands open-pit bitumen crude oils.
 mined truck shovel mining.
 crushers rotary breakers.
 combined water slurry.


.
 2015 credit facility.
 2011 five-year $ 3. billion unsecured credit facility amended 2014 2013 2012.
 april 2015 maturity march 2020 commitment $ 4. billion.
 additional $ 1. billion borrowing capacity approval principal amount not $ 5. billion.
 interest borrowings london interbank rate spread.
 not exceed maximum leverage ratio net debt earnings 3 to 1 less than 1 to 1 december 31 2015.
 facility provides back-up liquidity working capital investment opportunities.
 no amount outstanding.
.
 october 14 2009 program issue unsecured commercial paper notes maximum aggregate $ 4. billion amended april 2015.
 supported credit facility.
 no notes outstanding.
 long-term borrowings prices rates maturity unamortized discount debt issuance costs.
millions maturityamount unamortized discount debt costs carrying value fair value
 6. 25%. 25 % 2017 $ 700 699 757
 5. 2019
. 25%. 2021 745
. 375%. % 2022
. 50%. 2024
. 25%. 2025 753
 long-term borrowings $ 4960 4930 5223
 borrowings december 31 2014 carrying value $ 4. 922 billion fair value $ 5. 309 billion 2025.
 issued 20ac700 million. 25%. unsecured notes maturing may 6 2025.
 new york stock exchange.
 proceeds corporate purposes refinancing indebtedness.
 $ 10 million per year payable annually may 6.
 redeemed maturity redemption price.
unamortized discount debt costs amortized 2025 notes.
.
 20ac700 million debt investment hedge currency exposure.
 gain $ 19 million recognized 2015.
 hedge ineffectiveness.
.
 issued $ 1. billion. unsecured notes maturing march 2024.
 proceeds refinance indebtedness quarter 2014.
 interest payable semi-annually march 18 september 18 $ 35 million per year.
 notes redeemed price.
 unamortized discount debt costs amortized term 2024 notes.
.
 issued $ 1. 5 billion unsecured obligations.
 debt securities $ 750 million. notes repaid june 2015 $ 750 million 3. notes 2022.
 proceeds repurchase blackrock common stock purposes.
interest 2022 notes $ 25 million per year payable semi-annually june 1 december 1 commenced 1 2012.
 notes redeemed maturity option company 201d redemption price.
 greater par value present value future payments early redemption discounted fixed spread


realty trust financial statements.
 lease space tenants.
 fixed rentals monthly.
 office building leases tenants reimburse operating costs real estate taxes year.
 shopping center leases pass-through real estate taxes insurance maintenance.
 additional rent 2019 sales.
 31 2011 future base rental revenue non leases excluding less one year renewal options amounts 31.
 2012 1807885
 2013 1718403
 2014
 2015
 2016
 percentage rentals 2019 sales.
 rents $ 8482000 $ 7912000 $ 8394000 years december 31 2011 2010 2009.
 10% total revenues.
 due $ 5000000 per annum additional rent stop shop.
 december 31 2002 reallocated rent leases.
stop & shop additional rent.
 november 7 2011 court determined allocate annual rent unexpired leases agreement judgment pay unpaid rent 2013.
 december 31 2011 $ 41983000 receivable stop shop.


2005 losses $ 1 million securities.
 unrealized gains $ 1 million 2004 deferred taxes less $ 1 million.
 2004 net gains $ 26 million.
 unrealized gains $ 11 million 2003 deferred taxes $ 7 million.
.
 2006 incentive plan 2006 20000000 shares common stock options appreciation rights restricted stock deferred performance awards.
 8000000 shares 1997 equity incentive plan awarded 2006 plan.
 1997 plan expired 18 2006.
 1305420 shares 1997.
 106045 awards 2006.
 stock options previous plans.
 exercise price non-qualified stock options appreciation rights less fair value.
 options vest four years expire ten years.
 restricted stock awards stock certificates issued grant dividend voting rights.
 vest three years.
deferred stock awards 2006 1997 plan no stock issued grant.
 vest over four-year periods.
 performance awards 2006 1997 earned over.
 payment shares common stock cash equal fair market value.
 compensation expense estimated fair value grant date.
 black-scholes option-pricing model fair value.
 weighted-average assumptions.
 2006 2005 2004
 dividend yield 1. 41%. 85%. 35%.
 volatility 26.
 risk-free interest rate.
 option lives.
 compensation expense stock options appreciation rights restricted stock awards deferred awards performance awards $ 208 million $ 110 million $ 74 million years 2006 2005 2004.
 total income tax benefit $ 83 million $ 44 million $ 30 million 2006 2005 2004.
.
.
 8. 25 10. 75 state street. 07-2771-1 01 17:11:13 2007.


regulatory developments affect operations increase costs airline industry subsidiaries.
 part i item 1a.
 risk factors maintain facilities infrastructure slots operate flight schedule expand change route network impact operations business subject government regulation increases costs disruptions limits flexibility reductions demand competitive disadvantages subject environmental regulation substantial costs.
 airline business labor intensive.
 2013 salaries wages benefits 22% operating expenses.
 table active full-time employees as december 31  2013.
 american us airways wholly-owned regional carriers.
 pilots 7900
 flight attendants
 maintenance personnel
 fleet service personnel
 passenger service personnel
 administrative other
 60100


annual report consolidation 2013 february 28 2010 company adopted amended guidance con solidation.
 clarifies decrease ownership provisions applies subsidiary business nonprofit activity transferred equity investee joint venture exchange assets noncontrolling interest.
 expands disclosures deconsolidation subsidiary derecognition.
 impact financial statements.
. acquisitions december 17 2007 acquired capital stock beam wine estates.
 subsidiary fortune brands. subsidiaries atlas peak vineyards. buena vista winery. clos du bois. gary farrell wines.
 peak wines international.
.
 acquired.
 wine portfolio fortune brands. wineries vineyards california super-premium fine california wine brands.
 strengthening portfolio fast-growing super-premium wines.
bwe acquisition leading wine premium.
 consideration paid cash $ 877. 3 million.
 incurred acquisition costs $ 1. 4 million.
 purchase price financed proceeds december 2007 notes revolver borrowings june 2006 credit agreement.
 acquired assets recorded fair value date acquisition.
 purchase price based estimated future results.
 june 2008 sold businesses california wineries brands washington idaho.
 results operations reported wines segment consolidated results.
 table summarizes fair values assets acquired liabilities assumed acquisition.
 assets $ 288. property plant equipment.
.
 equipment.
 goodwill 334.
 trademarks.
 other assets.
 acquired 983.
 liabilities.
 long-term liabilities.
.
 assets acquired 878.
. acquired liabilities. long-term liabilities.liabilities assumed 105. assets acquired $ 878. trademarks not subject amortization.
 goodwill deductible tax.
 acquisition svedka acquired svedka vodka brand spirits marque one.
 svedka premium swedish vodka.
 supported premium spirits business foundation portfolio growth.
 super-premium premium brand.
 cash acquisition $ 385. 8 million.
 incurred direct acquisition costs $ 1. 3 million.
 financed revolver borrowings june 2006 credit agreement.
 acquired assets recorded fair value.
 purchase price based estimated future operating results svedka.
 constellation wines segment consolidated results.


part ii item 5.
 registrant common equity stockholder matters issuer purchases common stock shareowners dividends note 15 financial statements.
 december 2012 approved share repurchase program common stock $ 300 million 2013.
 april 26 2013 repurchase $ 1 billion april 2014.
 february 2014 repurchase $ 1. 5 billion december 2015.
 supersedes 2013 repurchase corporate purposes offset employee benefit programs.
 2013 repurchased 9 million shares $ 544 million.
 table purchases quarter december 28 2013.
 purchased average paid dollar value 9/29/13-10/26/13 10/27/13-11 #3 11/24/13-12/28/13.
 total number shares purchased average price paid share dollar value
#1 9/29/13-10/26/13 2014
 #2 10/27/13-11/23/13
 #3 11/24/13-12/28/13
 part ii item 5.
 registrant common equity stockholder issuer purchases shareowners dividends note 15 financial statements.
 december 2012 repurchase program $ 300 million 2013.
 april 26 2013 $ 1 billion 2014.
 february 2014 $ 1. 5 billion december 2015.
 supersedes 2013 employee benefit programs.
 2013 repurchased 9 million shares $ 544 million.
 purchases quarter december 28 2013.
 shares purchased average dollar value month #1 9/29/13-10/26/13 #2 10/27/13-11/23/13 #3 11/24/13-12/28/13


decline cash flows driven by timing inventory purchases 2014 2013.
 manage working capital operating cash needs monitor cash conversion cycle sales plus supply inventory minus purchases three-month average.
 components cycle.
 2015 2014 2013
 sales outstanding 48
 supply inventory 13
 purchases outstanding
 cash conversion cycle
 1 three-month average balance trade accounts receivable divided by average daily net sales.
.
 2 average merchandise inventory divided average daily cost goods sold.
 3 combined balance accounts payable-trade excluding overdrafts-inventory financing divided by average daily cost goods sold.
 cash conversion cycle 21 days december 31  2015 2014.
increase dso driven by higher receivable balance 2015 higher public segment sales slower government payments increase net sales third-party services software assurance warranties.
 dso receivable sales.
 dpo.
 increased mix payables longer payment terms.
 cash conversion cycle decreased 21 days december 31 2014 23 days 2013 improvement dso.
 decline dso improved collections early payments.
 timing inventory receipts 2014 dio unfavorable dpo.
 increased $ 189. 6 million 2015.
 due acquisition kelway 65% common stock 2015.
 capital expenditures increased $ 35. 1 million to $ 90. 1 million from. new office location information technology systems.
 net cash increased $ 117. 7 million 2014.
 paid $ 86. 8 million 2014 35% non-controlling interest in kelway.
capital expenditures increased $ 7. 9 million to $ 55. million from $ 47. 1 million 2014 information technology.
 cash increased $ 114. 5 million.
 driven share repurchases $ 241. 3 million.
. offset accounts payable-inventory financing $ 20. 4 million debt transactions cash outflows $ 7. 1 million $ 145. 9 million


1% % increase sales reflects higher north america emea offset lower asia.
 increase north america driven higher digital entertainment lower demand iden infrastructure.
 emea higher.
 decrease asia due delays 3g licenses china capital investment competitive pricing pressure.
 north america significant business 56% net sales 2006 2005.
 operating earnings $ 787 million 2006 $ 1. 2 billion 2005.
 36% 36 % ) decrease earnings due gross margin unfavorable competitive pricing increase other charges reorganization legal.
 gross margin sg&a expenses r&d expenditures operating margin decreased.
 sales top five customers nextel comcast verizon mobile represented 45% total net sales.
 backlog $ 3. 2 billion december 2006 $ 2. 4 billion 2005.
increase backlog due to strong orders digital hd/dvr set-tops.
 demand depends on capital spending broadband operators communications systems advanced services.
 2006 digital video customers increased purchases 2019s products services due to increased demand set hd/dvr set-tops.
 completed acquisitions kreatel communications digital set-tops nextnet wireless. broadbus technologies. television vertasent software developer.
 acquisitions segment results 2006.
 enterprise mobility solutions segment designs manufactures sells installs services analog digital two-way radio voice data communications products systems private networks wireless broadband systems end enterprise mobility solutions government public safety agencies retail utility transportation manufacturing healthcare commercial customers.
2007 segment 2019s net sales 21% 21 % sales compared 13% 2006 14% 14 % 2005.
 31.
 net sales $ 7729 $ 5400 5038 43% 43 % 7% 7 %
 operating earnings 27% 27 % 11% 11 % )
 20142007 2019s net sales increased 43% 43 % $ 7. 7 billion $ 5. 4 billion 2006.
 due commercial enterprise market symbol business 2007.
 government public safety market increased 6% 6 % demand north america.
 sales increased all regions.


h o s.
 2 0 0 2 consolidated financial statements rating december 31 2002.
 fair value commitments credit facility subject borrowings fees utilization fee.
 short-term maturities credit facilities variable interest rates.
 company $ 26 million uncommitted unsecured.
 derivative financial instruments revolving line credit.
 working capital exposed market risk overdraft.
 currency exchange rates.
 utilizes foreign exchange contracts offset default exchange rate fluctuations.
 intercompany sales purchases credit agreement unconditional twelve to twenty-four irrevocable guarantees.
.
 hold long-term debt ratings trading purposes.
. hedges future cash flows changes fair value repay outstanding obligations.
 earnings credit rating december 31 2002 hedged item affects earnings.
 ineffective requirement.
uncommitted credit line matures derivative change reported july 31 2003.
 borrowings.
 $ 0. 5 million 2001 average interest rate 6. 35 percent.
 $ 15 million uncommitted.
 line.
 short working capital japanese yen euro.
 agreement third parties customary covenants $ 252 million.
 restrictive.
 accrued liabilities december 31 2002 $ 13. million matures july 31 2003.
 $ 8. million net taxes deferred reclassified december 31  2002.
 earnings next two years $ 7. million $ 20 million uncommitted revolving $ 4. million net reclassified unsecured line.
.
 short-term working capital.
 pricing based money market rates.
.
capital stock earnings per share uncommitted unsecured line credit note 14 shares covenants restrictive distributed.
 dividend matures july 31 2003.
 no borrowings common stock december 31 2002.
 preferred stock purchase right ten shares covenants.
 july 2001 rights agreement december 31 2002.
 no long-term debt anti-takeover effects.
.
 right attaches each share common stock.
 rights exercisable learns person acquired right acquire beneficial ownership credit facility $ 156. $ 358. 20 percent shares uncommitted credit facilities. common stock directorstotal debt $ 156. $ 363. paid $ 13. million $ 4. 6 million tender interest charges 2002 2001.
 facility $ 156. $ 358.
 uncommitted credit facilities.
 total debt $ 156.$ 363.
 h o l d i n g s.
 2 0 0 2 consolidated financial statements rating december 31 2002.
 fair value commitments credit facility subject borrowings fees facility utilization fee.
 short-term maturities credit variable interest rates.
 $ 26 million uncommitted unsecured.
 derivative financial instruments revolving line credit.
 working capital exposed market risk overdraft.
 currency exchange rates.
 foreign exchange contracts offset default exchange rate fluctuations.
 sales purchases agreement unconditional twelve twenty-four irrevocable guarantees.
.
 hold long-term debt ratings trading speculative purposes.
. hedges future cash flows changes fair value repay outstanding obligations.
 income earnings credit rating december 31 2002 hedged item affects earnings.
 ineffective.
uncommitted credit line matures derivative change reported july 31 2003.
 borrowings.
 $ 0. 5 million 2001 average interest rate 6. 35 percent.
 $ 15 million uncommitted.
 line.
 short working capital japanese yen euro.
 agreement third parties customary covenants $ 252 million.
 restrictive.
 accrued liabilities december 31 2002 $ 13. million matures july 31 2003.
 $ 8. million net taxes deferred reclassified december 31  2002.
 earnings next two years $ 7. million $ 20 million uncommitted revolving $ 4. million net reclassified unsecured line.
.
 short-term working capital.
 pricing based money market rates.
.
capital stock earnings per share uncommitted line credit note 14 shares covenants restrictive distributed.
 dividend matures july 31 2003.
 no borrowings common stock december 31 2002.
 preferred stock purchase right ten shares covenants.
 july 2001 rights agreement december 31 2002.
 no long-term debt anti-takeover effects.
.
 right attaches each share common stock.
 debt rights exercisable learns person acquired right acquire beneficial ownership credit facility $ 156. $ 358. 2 20 percent shares uncommitted credit facilities. common stock directorstotal debt $ 156. 7 $ 363. paid $ 13. million $ 4. 6 million tender interest charges 2002 2001.


1b.
 unresolved staff comments.
 2.
 headquarters chicago illinois 20 south wacker drive.
 description key locations facilities.
 use owned/leased lease expiration size square feet 20 south wacker drive headquarters office space leased 141 west jackson 150000.
 300000 550 west 2023 250000 north end new york 2028 240000.
 owned/leased lease expiration size square feet
 20 south wacker drive headquarters office space
 141 west 150000
.
 west 250000
 north endnew york 240000
 london leased 2026 58000
 data center 3chicagoland business continuity co-location leased 2031 83000
bagmane tech park bangalore office space leased 72000
 data center chicagoland co-location leased leased.
 lease expires 2032 options extend five years.
 lease expires 2027 extend expand.
 lease expires 2028 extend expand.
 premises reduced 225000 square feet.
 2016 sold datacenter chicago $ 130. million.
 leased back property.
 lease expires 2020 extend terminate early.
.
 legal proceedings regulatory matters.
 contingencies consolidated financial statements page 87 proceedings disclosure.
.
 safety disclosures.


biomet holdings.
 subsidiaries 2017 10-k annual report financial statements.
 table summarizes liabilities integration plans millions employee termination benefits contract terminations.
 balance december 31 2016 $ 38. $ 35. $ 73.
 12. 5. 17.
 cash payments. 47.
 foreign currency exchange rate changes 1.
 balance december 31 2017 $ 14. 8 $ 30. 3 $ 45.
 recognized employee termination benefits acquisitions operational excellence initiatives.
 project personnel expenses salary benefits travel expenses notified termination quality enhancement remediation.
 relocated facilities expenses moving lease expenses costs relocation.
 litigation matters expenses settlement.
 royalty patent product liability commercial litigation.
contract termination costs agreements integration distribution model business restructuring operational excellence.
 sales agents distribution agreements.
 information technology integration costs non- capitalizable platforms software quality excellence initiatives.
 recognized $ 209. million intangible assets-process research development projects.
 2017 2016 impairment losses $ 18. 8 million $ 30. million.
 termination projects.
 recognized $ 479. million assets trademarks indefinite.
 reclassified finite life asset impairment $ 8. million.
 loss disposal sold economic useful life reduced integration quality operational excellence initiatives.
 contingent consideration adjustments fair value obligations prior owners.
 r&d agreements upfront payments intellectual property.
 investments maturity three months.
 valued at cost.
.
grant credit customers maintain allowance for doubtful accounts.
 determine allowance by geographic market credit experience creditworthiness information.
 collect accounts receivable write-off against allowance.
 allowance doubtful accounts $ 60. 2 million $ 51. 6 million as of december 31 2017 2016.
 lower cost first-in first-out.
 property plant equipment carried cost less accumulated depreciation.
 computed lives ten to forty years buildings three to eight years machinery equipment.
 maintenance repairs expensed.
 review property equipment for impairment.
 impairment loss future cash flows less than carrying amount.
 carrying exceeds fair value.
 capitalize costs.
 include materials services


earnings first quarter 2007 lower fourth quarter 2006.
 containerboard export sales volumes decline main tenance outages.
.
 converted products higher more shipping days demand ship ments.
 sales price comparable fourth- quarter averages.
 containerboard price increase january realized second quarter.
 costs wood energy starch adhesives freight increase.
 manufacturing costs higher main tenance outages.
 results improve higher sales volumes margins offset manufacturing costs.
 packaging demand pricing spending economic activity.
 profitability raw material energy costs manufacturing efficiency product mix.
 net sales increased 2005 7% 2004.
 profits 8% declined 15% 2004.
 higher sales volumes improved sales price reduced lack-of-order downtime offset higher raw material costs freight costs costs.
.
 profit
paperboard sales $ 1. 5 billion 2006 higher $ 1. 3 2005. 2004.
 volumes increased folding board demand.
 mills 4000 tons-order downtime 82000 2005.
 sales price improved folding cupstock.
 profits 51% higher 2006 7% 7 % better 2004.
 manufacturing.
 foodservice sales declined $ 396 million 2006 $ 437 million 2005 $ 480 million 2004 plant.
 sales vol umes lower 2006 higher increases.
 profits improved higher sales prices.
 raw material costs manufacturing costs increased productivity reduced waste.
 sales $ million down 691 2005 687 million 2004.
 sales volumes down weak demand home entertainment consumer products tobacco.
 sales prices lower.
 decline raw material costs inventory adjustment costs.
2007 coated paperboard sales stronger 2006 folding carton board bristols.
 price increase january.
 manufacturing costs improve.
 foodservice earnings decline weaker.
 sales price realizations higher switch hot cup contain ers product mix.
 shorewood sales volumes decline offset pricing improvements improved product mix.
 markets products services


apple inc.
 2016 form 10-k stock performance graph shareholder return dividend reinvested s&p 500 s&p information technology index dow jones.
 supersector index five years 24 2016.
 assumes $ 100 invested common stock s&p 500&p.
 index market september 23 2011.
 historic stock price performance not future.
 $ 100 invested 9/23/11 stock index reinvestment dividends.
 last day fiscal year common stock september 30th indexes.
 s&p mcgraw hill financial.
.
 dow jones.
.
.
 apple inc. $ 100 166 183
 s&p 500 index
 s&p information technology index 187
 dow jones. supersector index


financial statements 2014 sold contractual rights commissions.
 $ 7. 6 million may 31 2008 $ 1. million 2009.
 sale proceeds collected three nine months.
 2009 collected $ 4. million investment contractual rights cash flows.
 gains.
 deferred commission expense.
 recognized $ 1. 2 million deferred sales proceeds long-term liabilities.
 acquired assets euroenvios money transfer.
.
.
 customer base market branch locations.
 acquired money transfer branch locations united states.
 market presence dolex-branded money transfer.
 preliminary purchase price allocations 2008 acquisitions.
 13536
 customer-related intangible assets 4091
 contract-based intangible assets 1031
 property equipment 267
 current assets 502
 assets acquired 19427
 current liabilities
interest equity subsidiary cost
 assets acquired $ 16594
 customer-related 14 years.
 contract-based 3 10 years.
 acquisitions not significant financial statements information.
 2008 acquired customer list merchant referral agreement canadian $ 1. 7 million.
 $. 1 million expensed.
 remaining amortized 10 years.
 fifty-six percent ownership asia-pacific merchant hongkong shanghai banking corporation.
 card payment services-pacific.


discount rate.
 cash flow discounted risk time value.
 market approach valuation prices transactions.
 use multiples comparables.
 cost approach cost replacing asset used property equipment.
 cost reflects cost less loss depreciation.
 preliminary purchase price allocation $ 2. 8 billion goodwill amortizable tax.
 mst business segment.
 attributable revenue synergies integration products technologies sikorsky costs consolidation intangible assets.
 determining fair value assets liabilities requires judgments future cash flows long-term growth rates discount rates.
 cash flows analyses based future sales earnings cash flows market conditions customer budgets orders orders contracts labor agreements working capital business plans performance.
 different estimates judgments could different results.
2015 financial results sikorsky 2019s included november 6 through december 31.
 results reflect full sikorsky.
 sikorsky generated net sales $ 400 million operating loss $ 45 million intangible amortization adjustments.
 incurred $ 38 million non-recoverable transaction costs acquisition.
 consolidated statements.
 incurred $ 48 million costs $ 7. billion november 2015 notes borrowings 364-day facility acquisition.
 financing costs recorded reduction debt amortized interest expense debt.
 supplemental pro financial information 2014.
 net sales $ 50962 $ 53023
 net earnings
 earnings per common share.
 diluted earnings.
 calculated after accounting policies adjusting historical results sikorsky acquisition january 1 2014.
forma adjustments amortization assets interest short-term debt.
 fair value january 2014 amortization $ 125 million $ 148 million interest $ 42 million $ 48 million.
 nonrecurring adjustments $ 72 million pension curtailment loss $ 58 million income tax charge foreign subsidiaries.


table common shareholders 2019 equity estimated basel iii cet1 phased-in.
.
 shareholders 2019 equity $ 71267
 goodwill -3705
 intangible assets -671
 deferred tax liabilities
 -3468
 deductions investments nonconsolidated financial
 -489
 basel iii cet1 $ 58219
 basel iii advanced $ 594662
 ratio.
.
 phased-in requirement investments nonconsolidated financial institutions thresholds.
 no deduction below thresholds.
.
 credit valuation adjustments debt valuation adjustments credit risk deductions.
 first quarter 2015 disclose ratios standardized approach.
 estimated ratio 60 basis points lower estimated basel iii advanced cet1 ratio.
 subject transitional provisions.
transitional provisions effective january 1 2014 estimated basel iii cet1 standardized cet1 ratio 150 points higher december 2013.
. capital leverage ratios calculated capital framework.
 january 1 2014.
 based basel i adjusted  note 20 financial statements.
 to basel iii april 1 2014.
 estimated cet1 ratio december 2013 unchanged 1 ratio.
.
 revised capital framework increased minimum tier 1 leverage ratio 3% 3 to 4% ( 4 % ) january 1 2014.
 tier 1 supplementary leverage ratio advanced banking organizations.
 capital leverage exposure assets deductions off-sheet exposures.
 minimum supplementary leverage ratio 3% effective january 1  2018 disclosure first quarter 2015.
 increase minimum supplementary leverage ratio largest.
banks institutions basel framework.
 proposals 5% supplementary leverage ratio minimum 3% 3 % 2% 2 % buffer.
 december 2013 estimated supplementary leverage ratio approximates minimum.
 basel committee finalized revisions leverage exposure minimum 3% 3 %.
.
 regulators adopt revised definition leverage.
 goldman sachs 2013 annual report


.
 mine safety disclosures.
 registrant 2019s common equity issuer purchases stock listed new york stock exchange.
 transfer agent registrar broadridge corporate issuer solutions.
 1342 brentwood new york 11717 844 318-0129. 720 website. e-mail shareholder.
 31 october 2018 5391 holders common stock.
 cash dividends paid quarterly.
.
 board directors determines dividends timing financial condition.
 dividend information 2018 2017.
.
.
.
 fourth.
.
 purchases equity securities 2011 board directors authorized repurchase $ 1. billion common stock.
 expiration date.
 securities exchange act 1934.
 no purchases 2018.
 30 september 2018 $ 485. 3 million share repurchase authorization remained.
 purchases company discretion funds growth opportunities.


reconciliation unrecognized tax benefits.
 2010 2009 2008
 balance january 1 $ 29010 $ 34366 29132
 additions tax
 prior years
 reductions
 settlements
 lapses statutes limitations
 balance december 31 $ 23773 $ 29010 34366
 unrecognized tax benefits tax rate.
 2010 settled 2003 2004 audit.
 net tax benefit $ 25920 thousand.
 $ 12356 thousand reserve 2003 2004.
 subject.
 income tax examinations 2007.
 recognizes accrued interest unrecognized tax benefits penalties.
 31 2010 2009 2008 net expense $ 9938 $ 1563 thousand $ 2446 thousand penalties.
 2010 9938 $ 10591 thousand accrued interest 2003 2004.
company unrecognized tax benefits twelve months reporting.
.
 foreign tax credit carryforwards $ 55026 thousand 2014.
.
 $ 41693 thousand alternative tax credits.
 deferred tax assets no valuation allowance recorded.
 tax benefits $ 629 thousand $ 1714 thousand compensation deductions stock options 2010 2009 paid capital balance sheets.


entergy corporation utility companies system energy clean energy standards emissions credit program long-term agreements energy research development authority new york nypsc approval refueled fitzpatrick plant january february 2017.
 october 2015 pilgrim plant.
 analysis economics operating life decision reactor.
 plant operations may 31  2019 refueling spring 2017.
 december 2015 sale 583 mw rhode island state energy center.
 price $ 490 million.
 purchased risec $ 346 million 2011.
 2016 agreement consumers energy terminate palisades plant may 31  2018.
 $ 172 million early termination.
 regulatory approvals.
 palisades nuclear power plant october 1 2018 refueling spring 2017 fuel cycle.
entergy expects enter new consumers energy plant october 1 2018.
 january 2017 settlement new york state shut down indian point 2 april 30 2020 indian point 3 april 30 2021 resolve legal challenges indian point license renewal.
 agreed issue water quality coastal zone management act consistency certification withdraw objection license renewal.
 water discharge permit license.
 shutdowns conditioned.
 license renewal process 2018.
 entergy plans disposition wholesale commodities nuclear power plants sales vermont yankee fitzpatrick shutdowns pilgrim palisades indian point 2 3.
 wholesale commodities merchant power business.
 ownership nuclear power plants service year location capacity reactor license expiration.
 pilgrim
 fitzpatrick.oswego 838 mw 2034
 indian point 3 1976. buchanan 1041 mw 2015
 indian point. 1028 mw 2013
 vermont yankee 2002 vernon mw boiling water 2032
 palisades 1971. 2007 811 mw pressurized water 2031


long-term liabilities.
 company deferred compensation obligations based market value notional investment accounts.
 mutual funds based market prices.
 derivative utilizes fixed-to-floating interest-rate swaps fair-value hedges targeted variable-rate debt.
 variable-to-fixed interest rate swaps economic hedges interest cost variable-rate debt.
 future cash inflows outflows current fair value.
 contract terms counterparty credit risk interest rates market volatility.
 investments money market funds employee benefits.
 current assets.
 equipment.
 rental expenses $ 21 2015 $ 22 2014 $ 23 2013.
 expire 25 years equipment five years.
 renewal options one to five years.
 minimum annual future rental commitment.
 agreements public entities joint ventures-private partnerships.public-private partnerships company constructed utility plant connected property.
 real personal property equal industrial development bonds issued state industrial development commercial development act.
 leased total facilities including portions funded 40 years.
 leases funded required payments.
 ownership facilities revert end lease recorded capital leases.
 lease obligation receivable principal net basis.
 gross cost facilities funded capital lease $ 156 and $ 157 as of december 31 2015 2014 presented property plant equipment consolidated balance sheets.
 future payments lease obligations equal offset by payments receivable idbs.


shareowner return performance graph material future filing securities act 1933 exchange act 1934 except.
 five year comparison shareowners 2019 returns class b common stock standard 500 index dow jones transportation average.
 quarterly stock price reinvested dividends $ 100 invested december 31 2011 500 index dow jones transportation average common stock.
 united parcel service. 100. $ 103. $ 152. 165. 154. $ 189.
 500 index. 115. 153. 174. $ 176. $ 198.
 dow jones transportation average. $ 107. $ 151. $ 190. 158. $ 192.


corporation america financial statements 31 2006.
 stock-based compensation $ 8330000 unrecognized compensation costs restricted stock awards.
 recognize cost. 5 years.
.
 accrued liabilities.
 december 31 2006 2005
 bonuses incentives $ $ 21895
 medical insurance workers 2019 compensation 18279
 vacation holiday pay 14742
 customer volume discounts rebates
 franchise property taxes 8432
 payroll taxes
 100430 $ 86825
.
 employee benefit plans benefits acquisition pactiv resources agreement participation pension plan five years fee.
 january 1 2003 mirror-image pension plan hourly employees.
 recognizes service earned.
 reduced retirement benefits december 31 2002.
 assets liabilities benefits retained.
may 1 2004 pca adopted grandfathered pension plan employees.
 benefit formula comparable pactiv uses career average base pay final.
 recognizes service pca prior pactiv plan.
 benefits reduced retirement benefits april 30 2004.
 assets liabilities april 2004 retained pactiv.
 pca maintains supplemental executive retirement plan augments pension benefits executives excluding ceo.
 benefits determined same formula


2013 restructuring charges recorded severance actions $ 201 million state tax benefits $ 83 million $ 37 million $ 81 million information mission space systems segments.
 reduced net earnings $ 130 million $. 40 per share plan close consolidate facilities reduce workforce 4000 positions.
 $ 30 million severance actions is&gs first 2013 paid.
 plan review facility capacity workload align organization cost structure improve affordability decline.
 government spending changing economic landscape.
 terminated employees receive lump-sum severance payments years service.
 paid $ 15 million severance remainder 2015.
 accelerated incremental costs. depreciation $ 15 million $ 50 million $ 135 million is&gs mst space systems segments closures consolidations.
 expensed.
 recover restructuring charges pricing products services.
customers future impact business results.
 charges severance actions $ 48 million tax $ 25 million aeronautics $ 23 million reorganization electronic systems.
 reduced net earnings $ 31 million $. 09 per share severance costs elimination positions.
 cost reduction economic conditions.
 terminated employees-sum severance payments years service paid 2013.
 2011 charges $ 136 million $ 49 million 48 million $ 39 million aeronautics space systems is&gs.
 reduced net earnings $ 88 million $. 26 per share severance costs elimination positions.
 strategic review cost structure economic conditions.
 workforce reductions program lifecycles programs.
 terminated employees severance payments years service.
 half severance payments paid remaining 2012.
 2013 earnings share.
 2013 2011

 shares computations 320. 323. 335.
 dilutive equity 5. 4.
 shares diluted computations 326. 328. 4.


entergy texas.
 fuel power expenses increased power purchases agreements average market prices offset deferred fuel expense recovery.
 regulatory charges $ 6. million recovery bond expenses securitization bonds.
 recovery effective july 2007.
 note 5 financial statements.
 2007 2006 net revenue fuel-related expenses gas power expenses regulatory charges.
 analysis change net revenue 2007 2006.
.
 2006 net revenue $ 403.
 power capacity.
 securitization transition charge.
.
 transmission revenue.
 base revenue.
.
 2007 net revenue $ 442.
 purchased power capacity variance due costs.
 securitization transition charge variance due issuance bonds.
 june 2007 egsrf-owned texas issued securitization bonds right recover charge.
note 5 financial statements securitization bond.
 volume/weather variance increased electricity usage retail weather 2007.
 unbilled sales.
 electricity increased 139 gwh sectors.
 accounting estimates note 1 unbilled revenues.
 transmission revenue variance 2007 customers 2006.
 base revenue transition competition march 2006.
 note 2 rate increase.
 revenues expenses $ 179 million fuel rates refunds.
 offset $ 39 million increase net revenue $ 44 million wholesale revenues 30 million equalization.


software investment next-generation technologies offset cost-reduction.
 charges increased employee severance exit.
 sg&a expenses decreased lower marketing expenses information technology upgrades.
 gross margin operating margin decreased sg&a expenses r&d expenditures increased.
 backlog $ 647 million december 2007 $ 1. 4 billion 2006.
 customer demand limited product portfolio.
 shipped 159. million units 2007 27% 27 % decrease. 2006.
 shipments.
 shipments decreased asia emea north america increased latin america.
 worldwide increased 16%.
 worldwide market share 14% 8 points 2006.
 asp decreased 9%.
 driven by changes product-tier geographic mix.
 decreased 11% 2006 10% 2005.
 large customers.
 net sales five largest customers 42% net sales.
selling to carriers operators segment sells products through third-party distributors retailers 33% net sales.
 largest brightstar corporation.
.
 largest customers 54% 2007 net sales outside.
 largest international markets brazil china mexico.
 home networks mobility segment designs manufactures sells installs services digital video internet protocol video broadcast network interactive set-tops end-to-end video delivery systems broadband access infrastructure platforms data voice equipment to cable television telecom service providers wireless access systems.
 2008 net sales 33% consolidated net sales 27% ( 27 % 2007 21% 21 % 2006.
.
 net sales $ 10086 9164 1% ( 1 % 9% ( 9 %
 operating earnings 918 29% ( 29 %
results 20142008 2007 net sales increased 1% $ 10. 1 billion.
 increase reflects 16% 16 % increase home business offset 11% decrease networks business.
 increase driven 17% 17 % increase digital entertainment devices 19% 19 % increase shipments 18. 0 million units offset lower asp product shift pricing pressure.
 11% decrease networks driven embedded communication computing group divested 2007 lower sales iden  gsm cdma equipment offset higher umts equipment.
 1% 1 % increase driven higher sales latin america asia offset lower north america.
 increase latin america financial condition results operations


assumptions table reflects hundred point increase estimated long-term return assets 2011 pension expense millions long-term rate return.
 expense
.
. 35 )
 -5 5
 -2 2
 estimated future contributions $ 403 million 2011 $ 288 million goodwill intangible assets excess cost market value assets.
 intangible assets trademarks customer relationships technology non-compete agreements intangibles.
 goodwill balances december 31 2010 increased $ 8. 6 billion $ 3. 6 billion $ 6. billion $ 791 million 2009 hewitt acquisition.
 goodwill test impairment annually fourth.
 acquired trademarks impairment.
 indicators.
 decline share price market capitalization future cash flows adverse change legal factors business climate.
events 2010 or 2009 impairment reported goodwill trademarks.
 perform impairment reviews at reporting unit level.
.
 component reporting unit discrete financial information available management reviews operating results.
 reporting unit if components similar single component.
 goodwill impairment test two step analysis.
 one fair value unit to book value.
 management fair value.
 fair value greater than goodwill trademarks not impaired no further testing necessary.
 fair value less than perform step two.
 calculated fair value hypothetical purchase price allocation assets liabilities.
 difference implied fair value goodwill.
 charge recorded in financial statements if carrying value greater than implied fair.


consolidated financial statements accounting policies table reconciles company asset retirement liabilities 2003 2004 millions.
 liability september 29 2002 $ 5.
 obligations.
.
 liability september 27 2003 $ 7.
 obligations.
.
 liability september 25 2004 $ 8.
 long-lived assets goodwill acquired intangible assets reviews property plant equipment intangibles excluding goodwill impairment.
 recoverability measured carrying future cash flows.
 impaired impairment equals carrying value exceeds fair market value.
 three years 25 2004 2003 2002 no material impairment long-lived assets except restructuring actions.
 adopted.
 quarter fiscal 2002.
.
 goodwill assets tested impairment annually.
 2002 goodwill amortized estimated useful life.
company completed transitional goodwill impairment test october 1 2001 annual august 30 found no impairment.
 established reporting units.
 testing goodwill impairment allocated.
.
 requires intangible assets amortized lives reviewed impairment.
 long-lived.
 amortizing acquired intangible assets 3 to 10 years.
 translates assets liabilities international.
 subsidiaries.
 dollars exchange rates.
 revenue expenses translated.
 gains losses translations credited charged currency 2018 income.
 foreign subsidiaries subsidiaries.
 dollar monetary assets liabilities exchange rates inventories property nonmonetary assets liabilities historical rates.


2017 form 10-k intangible assets amortized over lives tested.
 2016 customer relationship intangibles $ 96 million $ 27 million intellectual property $ 111 million $ 48 million resource industries impaired.
 fair value insignificant.
 fair value level 3 internal projections unobservable measurement inputs.
 impairment $ 132 million restructuring activities operating expense statement.
 note 25.
 amortization expense $ 323 million $ 326 million $ 337 million 2017 2016 2015.
 december 31 2017 expense expected millions.
 2022
.
 no impairments 2017 2015.
 annual impairment tests 2016 fair value unit above carrying value surface mining technology reporting unit.
.
 acquisition bucyrus international.
 2011.
product portfolio mining trucks shovels draglines hydraulic shovels parts.
 develops sells fleet management autonomous.
 annual impairment test 2016 fair value below carrying value second step.
 determined income.
 assets liabilities royalty dealer attrition technological obsolescence discount rates.
.
 recognized goodwill impairment charge $ 595 million $ 629 million october 1 2016.
 fair value determination level 3 internal projections unobservable measurement inputs.
 $ 17 million tax benefit.


management revenues equities $ 8. 21 billion 2012 unchanged 2011.
 securities services higher gain $ 494 million sale hedge fund administration business.
 equities client execution revenues higher higher cash products increased client activity.
 offset lower commissions fees declines united states asia.
 average daily volumes lower.
 global equity prices lower volatility.
 net loss credit spreads borrowings $ 714 million $ 433 million $ 281 million gain $ 596 million 197 2011.
 institutional services market concerns uncertainties positive developments.
 central bank actions monetary funding risks.
.
 economy unemployment housing.
 tighter credit spreads higher equity prices lower volatility.
 concerns global economy political uncertainty client risk aversion lower activity.
 uncertainty financial regulatory reform.
expenses $. billion 2012 3% lower 2011 due brokerage clearing exchange fees impairment charges offset provisions litigation regulatory proceedings.
 pre- tax earnings $ 5. 64 billion 2012 27% higher 2011.
 investing origination loans.
 longer-term.
 debt securities loans public private equity securities real estate entities.
 results investing lending.
 equity securities
 debt securities loans
 net revenues 7018
 expenses
 pre-tax earnings
.
 net revenues investing lending $ 7. billion 2013 19% 19 % higher 2012 increase net gains equity securities higher global equity prices.
 net gains interest income debt securities loans higher other revenues lower.
equity markets credit spreads revenues.
 operating expenses $ 2. 68 billion 2013.
 impairment charges compensation benefits.
 pre-tax earnings $ 4. 33 billion 34% higher.
 sachs report


foodservice industry two types 2014 2018traditional restaurant. customers include restaurants hospitals schools hotels industrial caterers.
 sysco chain restaurant customers include regional national hamburger sandwich pizza chicken steak chain operations.
 supported by physical facilities vehicles material handling equipment administrative operating staffs.
 products include frozen foods canned dry foods fresh meats imported specialties fresh produce.
 supplies non-food items paper products tableware cookware restaurant kitchen equipment cleaning supplies.
 sysco companies distribute nationally-branded merchandise products private brands.
 prompt accurate delivery close contact full products services.
 offer daily delivery special orders short notice.
 informed new products services.
 provide ancillary services product usage reports menu-planning advice food safety training inventory control third party services.
customer 10% sysco 2019s sales fiscal year 2006.
 sales variety food products.
 believes consistent product quality service important selection chain restaurant supplier.
 one customer 2019s international. accounted 5% sysco 2019s sales.
 represents 37% sygma segment sales loss sysco.
 estimates sales by type customer past three fiscal years.
 2006 2005 2004
 restaurants 63% ( 63 % ) 64% 64
 hospitals nursing homes
 schools colleges 5
 hotels motels
 totals 100% ( 100 %
 63% ( 63 hospitals nursing homes schools colleges hotels motels totals sysco purchases from thousands suppliers none more than 10% 2019s purchases.
suppliers large corporations selling label merchandise processors packers.
 purchasing through companies.
 develops relationships suppliers no long-term purchase commitments.
 second quarter fiscal 2002 sysco began supply chain.
 profitability inventory operating costs future facility expansion providing value suppliers customers.
 h39408|09/06/2006 17:07 valid graphics color


entergy new orleans.
 subsidiaries management financial receivables money pool december 31 years.
 2016 2015 2014 2013
 $ 14215 $ 15794 442 4737
 note 4 financial statements.
 orleans credit facility $ 25 million november 2018.
 letters credit $ 10 million borrowing capacity.
 december 31 2016 no cash borrowings $ 0. 8 million letter credit outstanding.
 uncommitted letter credit facility.
 $ 6. 2 million letter credit.
 note 4 financial statements.
 authorization october 2017 short-term borrowings not exceed $ 100 million.
 note 4 statements-term borrowing limits.
 long-term securities issuances authorized city council authorization extends june 2018.
 influence financial position results liquidity.
 rates determined regulatory.
city council.
 transfer entergy louisiana new orleans.
 2013 entergy louisiana rate case area regulated.
 rate increase $ 13 million three years. 4%. return common equity.
 2014 council rate increase $ 5. 56 million three years. 13%. return common equity.
 june 2014 council approved settlement 2022 $ 9. 3 million rate revenue increase four years $ 853 thousand annually four-year formula rate plan reports implemented october.
 return common equity. 95%. +/- 40 basis point bandwidth.
 increase bills billing cycle july 2014.
 compliance filings october 2014 rate riders ninemile 6 non-fuel cost recovery interim rider


2014 acquired partner atmospheric industrial gases joint venture north america $ 22. increased ownership 50% to 100%.
 business combination results consolidated industrial gases segment.
 gain $ 17. $ 11. after-tax. per share revaluing equity fair value.
 note 6 consolidated financial statements details.
 transactions.
.
.
 2016 $ 121. increased $ 71. transition services agreements versum evonik sale assets investments gain $ 12. $ 7. after-tax. per share sale land favorable foreign exchange impact.
.
 $ 49. increased $ 3. lower foreign exchange losses contract settlements government subsidy.
 2015 gain $ 33. $ 28. after tax $. 13 per share sale two parcels land.
 items.
.
 $ 139. $.$ 151.
 capitalized interest 19. 32. 49.
 expense $ 120. $ 115. $ 102.
 2017.
 2016 interest decreased $ 8. lower debt balance $ 26 offset higher interest rate $ 19.
 carrying value projects exit energy-from-waste business.
 2016.
 2015 interest decreased $ 4.
 stronger.
 dollar foreign currency $ 6 offset higher debt balance $ 2.
 carrying value projects construction exit energy-from-waste.
 $ 29. 2017 cash time deposits sale pmd.
 2016 2015.
.
 loss extinguishment debt 2016 issued $ 425. notes air products exchanged $ 418.
 loss $ 6. $ 4. 3 after-tax $. per share.
 2015 payment $ 146. 3000000 unidades fomento.bonds due 2030 $ 130. net loss $ 16.-tax 07 share.


table 20 pro forma transitional basel iii 1 capital ratio december 31.
 2013
 1 capital $ 28484
 regulatory capital adjustments
 basel iii limits -228
 income 39
 intangibles 381
 adjustments 210
 estimated basel iii transitional 1 capital 2014 $ 28886
 risk-weighted assets 272321
 basel iii capital ratio 10. 6%. %
 iii $ 28886. 6%. net adjustments income securities pension postretirement benefit plans.
 pnc utilizes iii capital ratios capital position institutions.
 impacted regulatory guidance analysis ratios advanced approaches validation regulatory approval pnc models.
access cost funding new business initiatives acquisitions expanded business activities pay dividends repurchase shares capital instruments deposit insurance costs regulatory oversight depend financial institution capital strength.
 information enhanced capital requirements impacts on pnc in item 1 business 2013 supervision regulation 1a risk factors note 22 regulatory matters notes consolidated financial statements 8.
 off-balance sheet arrangements variable interest entities activities unconsolidated entities 201coff-balance sheet arrangements. information sections 2022 commitments 2022 note 3 loan sale servicing activities variable interest entities 14 capital securities subsidiary trusts trust 24 commitments guarantees.
 pnc consolidates variable interest entities primary beneficiary.
 criteria decisions economic performance absorb losses receive benefits.
summary of vies consolidated financial statements december 2013 2012 note 3 consolidated financial statements item 8.
 trust reit subject to restrictions dividend payments $ 206 million junior subordinated debenture $ 200 million trust securities 2013 issued by pnc capital trust c subsidiary.
 default pnc payments default under pnc guarantee payment obligations pnc subject restrictions dividends exchange agreement pnc trust ii.
 note 14 capital securities subsidiary trusts perpetual trust securities financial statements 8 limitations on dividend payments securities pnc trust i.
 liquidity risk management item 7 first quarter 2013 redemption of reit preferred securities pnc iii redemptions.
 pnc financial services group.
 2013 form 10-k


consolidated financial statements 2014 transactions foreign currency consultoria internacional casa de cambio mexican company owned employees.
 march 31 2008.
 10% shareholder cisa no.
 purchased 6. 1 billion mexican pesos $ 560. 3 million 2008 8. 1 billion $ 736. million 2007 cisa.
 transactions prevailing market exchange rates.
 settled facilities cisa.
 incurred settlement expenses $. 5 million 2008.
 2007 2006 expenses $. 7. 6 million.
 contractors software development.
 2005 employee part owner firm.
 software development next generation front-end processing system.
 2008 capitalized fees $. 3 million.
 2008 2007 $ 4. 9 million $ 4. 6 million property equipment balance sheets.
 expensed amounts $. 3 million. 1 million.million 2008 2007 2006.
 operations leased facilities equipment.
 renewal purchase options property taxes insurance maintenance.
 rent expense leases 2006 $ 30. 4 million $ 27. 1 million $ 24. 4 million.
 lease payments leases may 31 2008.
 22883
 2010 16359
 2011 11746
 2012 5277
 2013
 $ 67446
 claims lawsuits business.
 impact financial position liquidity operations.


annual changes november 18 2013 ordinary shares december 31 2016 $ 100 invested allegion plc shares standard poor 500 stock index capital goods index november 18 2013 dividends reinvested.
 total cumulative dollar returns represent value investments december 31 2016.
 2016.
 allegion plc 100. 91. 115. 137. 71 134. 67
 s&p 500. 103. 117. 59 119. 133.
 s&p 400 capital goods 100. 105. 99. 131.


jpmorgan chase co. annual report 291 not recorded balance until settlement date.
 unsettled reverse repurchase agreements securities borrowing agreements regular-way settlement periods.
 loan sales securitization indemnifications mortgage repurchase liability loan sale securitization activities warranties loans meet requirements.
 repurchase loans indemnify. losses liquidated.
 repurchase demands loans purchased recovery repurchase losses third party.
 maximum future payments breaches representations warranties unpaid principal balance loans accrued interest expense.
 table summarizes mortgage repurchase liability.
 year ended december 31 2014 2013 2012 liability $ 681 $ 2811 $ 3557 gains losses.
 31 2013
 $ 681 $ 2811 3557
gains losses 53 -1561 1561 -1158 1158
 litigation reserve 2014 -179
 repurchase -459 -390 412
 repurchase liability $ 275 681 2811
 october 25 2013 $ 1. billion agreement fhfa mortgage repurchase demands loans 2000 2008.
 third-party recoveries principal losses accrued interest repurchased loans settlements.
 $ 11 million 414 million $ 524 million 2014 2013 2012.
 new loan sales $ 4 million $ 20 million $ 112 million.
 label securitizations liability repurchase demands litigation reserves.
 november 15 2013 $ 4. 5 billion agreement 21 investors offer trustees 330 residential mortgage-backed securities.morgan chase bear stearns trust settlement representation warranty servicing claims trusts issued.
 2005 2008.
 seven trustees 330 trusts accepted settlement 319 trusts excluded 16 trusts.
 2019 acceptance subject judicial approval new york state court.
 2005 to 2008 washington mutual loan representations warranties $ 165 billion residential mortgage loans.
 $ 78 billion repaid.
 $ 49 billion liquidated average loss severity 59%.
 remaining balance december 31 2014 $ 38 billion $ 8 billion 60 days past due.
 repurchase obligations remain fdic receivership.
 31.
 provides servicing mortgages commercial lending products nonrecourse.
 credit risk temporary servicing advances.
 credit risk owner.
losses recourse occur foreclosure sales defaulted loan less principal balance interest cost.
 firm 2019s securitizations nonrecourse future credit losses purchaser securities.
 2013 unpaid balance loans sold recourse totaled $ 6. 1 billion $ 7. 7 billion.


fair value options estimated grant black-scholes option pricing model weighted-average assumptions 2006 2005 2004.
 average value options $ 20. $ 9. $ 7.
 volatility.
 yield.
 life options 6.
 risk-free interest rate 5% 5 % 4% 4
 black-scholes option valuation model fair value traded options vesting restrictions transferable.
 require subjective assumptions stock price volatility.
 models fair value.
 total fair value shares vested 2006 2005 2004 $ 9413 $ 8249 $ 6418.
 aggregate intrinsic values options december 30 2006 $ 204. million $ 100. 2 million.
 exercised $ 42. 8 million.
 difference closing stock price last trading day period $ 55.december 29 2006 exercise price multiplied options.
 30 $ 64. 2 million unrecognized compensation cost unvested share compensation awards option plans.
 recognized five years.
.
 2000000 shares common stock reserved.
 equal market purchase enrollment.
 stock revenue code.
 2006 2005 2004 124693 112798 117900 shares purchased purchase price $ 3569 2824 $ 2691 .
 december 30 2006 1116811 shares future issuance.


agreements govern indebtedness acquisition contain restrictions us subsidiaries businesses.
 carefusion transaction contain restrict subsidiaries liens transact business merge consolidate sell convey assets.
 financial covenants maintain financial ratios.
 affected by events beyond control.
 failure default repayment obligations.
.
.
.
.
 executive offices in franklin lakes new jersey.
 2016 owned leased 255 facilities 19796011 square feet manufacturing warehousing administrative research facilities.
.
 facilities 7459856 square feet owned 2923257 square feet leased space.
 international facilities 7189652 square feet owned 2223245 square feet leased space.
 sales offices distribution centers throughout.
 operations at.
 international locations.
international marketplace facilities serve business segment multiple purposes manufacturing warehousing.
 manufacturing facilities some leased.
 table summarizes property information business segment.
 sciences medical mixed
 leased 19 75
 owned
 103
 square feet
.
 good construction physical condition operations utilized normal capacity.
.
 alabama arizona california connecticut florida georgia illinois indiana maryland massachusetts michigan nebraska new jersey north carolina ohio oklahoma south carolina texas utah virginia washington. wisconsin puerto rico.
facilities east africa denmark england france ghana hungary ireland kenya luxembourg netherlands poland russia saudi south africa spain sweden switzerland turkey emirates zambia.


management financial condition results operations bancorp 100 million shares common stock open market privately transactions derivative instrument share repurchase transactions.
 authorization replaced board previous authorization.
 may 21 2013 bancorp accelerated share repurchase transaction purchased 25035519 shares $ 539 million common stock.
 100 million share repurchase program march 19 2013.
 october 1 2013 received additional 4270250 shares adjustment treasury shares.
 november 13 2013 accelerated share repurchase transaction 8538423 shares $ 200 million stock.
.
 settlement february 28  2014.
 december 10 2013 accelerated share repurchase transaction purchased 19084195 shares $ 456 million common stock.
 100 million program.
 settlement march 26  2014.
28 2014 bancorp accelerated share repurchase transaction purchased 3950705 shares $ 99 million common stock 31.
 100 million share repurchase program 19 2013.
 settlement march 26 2014.
 share repurchases.
 december 31 2013 2012 2011
 repurchase january 63046682 19201518
 45541057
 repurchase december 31 43071613 63046682 19201518
 average price share $ 18. $.
 2013 purchase 100 million shares common stock.
 price targets expiration date.
 replaces previous authorization 54 million shares repurchase.
 1863097 2059003 1164254 shares repurchased 2013 2012 2011 employee compensation plans.
repurchases not included in average price count against maximum shares under board directors 2019 authorization.
 stress tests bhcs hold adequate capital access funding continue operations obligations credit intermediaries.
 ccar process requires comprehensive capital plan minimum horizon nine quarters economic scenarios.
 mandatory elements assessment use sources capital capital actions changes business plan capital process capital adequacy capital policy.
 revised capital framework basel iii accord minimum regulatory capital ratios transition arrangements.
 frb review assumptions analysis.
 reviews capital adequacy process capital policy ability maintain capital above ratios basel iii tier 1 common ratio 5 percent stressful conditions.
 frb stress testing rules section 165 dfa.
 large bhcs including bancorp subject to final stress testing rules.
rules require supervisory company stress tests capital losses operations adverse economic conditions.
 2013 frb completed 2013.
 frb objected non- objection.
 capital actions april 1 2013 march 2014 increase quarterly common stock dividend to $ 0. 12 per share repurchase $ 750 million trups ii-qualifying subordinated debt conversion $ 398 million. 5%. convertible preferred stock into 35. 5 million common shares.
 repurchase shares $ 550 million $ 550 million preferred stock


2013 2019s net sales decreased $ 305 million 3%.
 $ 305 million c4isr programs $ 85 million undersea systems decreased volume deliveries $ 55 million settlements contract cost programs 2013.
 decreases offset higher net sales $ 80 million integrated warfare systems sensors increased volume space fence $ 40 million training logistics solutions increased deliveries.
 operating profit decreased $ 129 million 12%.
 lower operating profit $ 120 million settlements contract cost $ 55 million lower c4isr sales international $ 45 million higher reserves training logistics solutions programs.
 decreases offset higher operating profit $ 45 million $ 60 million increased risk retirements radar surveillance.
 adjustments $ 85 million lower 2014.
 increased sikorsky backlog higher orders new program starts.
 higher orders.
expect 2016 sales increase mid-double digit 2015 sikorsky programs offset decline volume programs.
 operating profit equivalent 2015 margin decline sikorsky acquisition integration restructuring costs.
 research development design engineering production satellites strategic defensive missile systems space transportation systems.
 network situational awareness integrates global systems intelligence.
 responsible classified systems services national security systems.
 programs trident ii d5 fleet ballistic missile orion space infrared system aehf gps-iii geostationary satellite-series.
 operating profit includes earnings investment ula expendable launch services.
.
 results.
 2014
 net sales $ 9105 $ 9202
 operating profit 1171
 margins.
 backlog year-end $ 17400 $ 20300
sales decreased $ 97 million 1%.
 $ 335 million sales satellite decreased volume $ 55 million missile systems volume.
 offset higher sales $ 235 million 2014 $ 75 million orion program increased volume.


extrusions engineered products building construction systems.
 estimated fair value five six units exceeded carrying value no impairment.
 estimated value afe lower carrying value.
 fourth quarter 2017 impairment $ 719.
 due unfavorable performance margins higher discount rate risk-free rate return carrying value increased.
 goodwill impairment tests 2016 2015 not impaired except soft alloy extrusion business brazil.
 2015 estimated fair value lower carrying value.
 implied fair value zero.
 goodwill impairment $ 25 2015.
 downturn brazilian economy erosion gross margin cost reduction strategies.
 no goodwill remaining.
 intangible assets.
 indefinite lives not amortized finite amortized.
 average useful lives software intangible assets by reporting segment.
software intangible assets
 engineered products solutions
 global rolled products
 transportation construction solutions
 revenue recognition.
 recognizes revenues title ownership risk loss customer shipment based shipping terms.
 product transportation.
 arconic receives advanced payments.
 recorded deferred revenue until product delivered title risk passed customer.
 revenue included current noncurrent liabilities deferred credits consolidated balance sheet.
.
 expenditures current operations expensed capitalized.
 expenditures conditions expensed.
 liabilities recorded when remediation costs probable estimated.
 site investigations consultant fees feasibility studies contractors monitoring expenses.
 not discounted by claims recovery.
 recognized.
 costs responsible parties.
 liability reviewed reflect remediation progress estimates technology.
 litigation.
asserted claims assessments liabilities recorded unfavorable outcome probable loss estimable.
 management determines likelihood nature defenses strategy progress views legal counsel applicability appeals historical matters.
 unfavorable outcome probable management weighs probability reasonable loss estimate recorded.
 unfavorable outcome possible disclosed no liability recorded.
 unasserted claims assessments management probability assertion likelihood unfavorable outcome potential loss.
 legal matters reviewed change management judgment estimate loss.
 income taxes.
 provision determined asset liability approach.
 represents paid payable


.
.
 merck & co.
 global health care company innovative health solutions prescription medicines vaccines biologic therapies animal health consumer care markets joint ventures.
 operations four segments animal health consumer care alliances pharmaceutical.
 human health vaccine products joint ventures.
 health pharmaceutical products therapeutic preventive agents.
 drug wholesalers retailers hospitals government agencies health providers.
 vaccine products preventive pediatric adolescent adult vaccines.
 physicians wholesalers distributors government entities.
 animal health operations products veterinarians distributors producers.
 consumer care operations over-the- counter foot sun care products wholesale outlets club stores specialty channels.
 incorporated new jersey financial information.
 financial condition results operations.
statements data.
 product service marks owned licensed promoted distributed merck subsidiaries affiliates.
 owners.
 top pharmaceutical products animal health consumer care products.
 millions 2013 2012 2011
 total sales $ 44033 $ 47267 $ 48047
 pharmaceutical 37437 40601 41289
 januvia 4004
 zetia 2567
 remicade 2271 2076 2667
 gardasil
 isentress
 nasonex
 proquad/m-m-rii/varivax
 animal health 3362 3253
 consumer care 1894 1952
 revenues 1315 1665
 alliance corporate third-party manufacturing sales.
 october 1 2013 divested third-party manufacturing sales.


changes 2008 unrecognized tax benefits.
 balance december 1 2007 201808
 increases 2013 14009
 increases 11350
 settlements -81213
 statute limitations
 foreign exchange gains losses
 balance november 28 2008 139549
 liability unrecognized tax benefits november $ 139. 5 million exclusive interest penalties.
 recognized estimated $ 12. 9 million tax returns $ 57. 7 million decrease tax rate $ 68. 9 million goodwill.
 combined accrued interest penalties $ 15. 3 million.
 tax returns.
 federal.
 jurisdictions.
 continual examination authorities.
 major tax jurisdictions. ireland california.
. earliest fiscal years examination 2001 2002 2005.
.
 tax examination 2001 2004.
accrued tax interest $ 100. 0 million reported long-term income taxes.
 approval repatriate foreign earnings tax-free long-term deferred income tax liability $ 57. 8 million.
 liabilities decreased $ 157. 8 million.
 august 2008 paid $ 80. 0 million credited-capital $ 41. 3 million tax stock option deductions deferred tax assets adjustments tax balances $ 15. 8 million.
 net income tax benefit third quarter 2008 $ 20. 7 million.
 accounting treatment unrecognized tax benefits acquired companies sfas 141r effective.
 first quarter fiscal year 2010.
 changes tax benefits recorded income tax expense.
 timing resolution income tax examinations uncertain amounts paid differ.
 12 estimate timing tax benefits.
expect settlements 2009 uncertain.


.
 exhibits annual report form 10-k item regulation 15.
. certificate incorporation exhibit 3. amendment.
 registration statement s-4 file.
 333-151586 201camendment.
.
.
. certificate incorporation exhibit 3. amendment. registration statement s-4 file. 333-151586 201camendment.
. exhibit 3. november 16 2009. 1-34177
. certificate shares registrant 2019s series common stock $. 01 share exhibit 4. statement file 333-151586
. shares registrant 2019s series common stock. 01 share exhibit 4.
. shares 2019s series c common stock. exhibit 4.
. registration rights agreement discovery communications. advance/newhouse programming partnership exhibit.
. agreement discovery communications. computershare trust company. exhibit.statement
. amendment. agreement discovery communications. computershare trust company. december 2008 exhibit 4. 11 2008
. amendment restatement agreement $ 700000000 unsecured notes november 4 2005 discovery communications. purchaseagreement exhibit. registration statement
. amendment 2001 note purchase agreement april 11 2007 discovery communications. holders exhibit. registration statement
. amendment restatement agreement $ 290000000 unsecured notes november 4 2005 discovery communications. purchase agreement. 201c2002 note purchaseagreement. registration statement
. amendment 2002 note purchase agreement april 11 2007 discovery communications. holders exhibit. registration statement
. note purchase agreement december 1 2005 discovery communications. 201c2005 note purchaseagreement 201d. 11 registration statement
.amendment 2005 note purchase agreement april 11 2007 discovery communications. holders exhibit 4. registration statement
. certificate 2019s series common stock $. 01 per share exhibit 4. statement.
-151586. certificate 2019s series b common stock $. 01 per share 4. shares 2019s series c common stock $. 01 per share. registration rights agreement discovery communications.
 advance/newhouse programming partnership. agreement discovery communications.
 computershare trust company. amendment.
 rights agreement discovery communications.
 computershare trust company.
 december 10 2008 exhibit 4. amendment restatement agreement $ 700000000 senior unsecured notes november 4 2005 discovery communications.
 holders amended note purchase agreement.
holders 201c2001 note agreement incorporated exhibit 4. 7 registration. amendment 2001 agreement april 11 2007 discovery communications.
 holders exhibit. amendment restatement agreement $ 290000000 unsecured notes november 4 2005 discovery communications.
 holders amended restated purchase agreement november.
 201c2002 note purchase agreement 201d exhibit. registration. amendment 2002 note purchase agreement april 11 2007 discovery communications.
 holders. purchase agreement december 1 2005 discovery communications.
 holders 201c2005 note purchase agreement 201d exhibit. registration. amendment 2005 note purchase agreement april 11 2007 discovery communications.
 holders exhibit.


deferred revenue sanofi-aventis 2019 $ 85. million payment decreased 2010 amendments.
-aventis $ 30 million manufacturing capacity rensselaer new facilities $ 23. 4 million sanofi-aventis december 31 2010.
 deferred collaboration revenue $ 85. million.
 $ 79. 8 million-aventis deferred recognized future.
 2008 separate velocigene agreement sanofi-aventis.
 2010 2009 recognized $ 1. 6 million $ 2. 7 million.
 healthcare collaboration revenue cost sharing regeneron vegf trap-eye expenses performance milestone payments non-refundable $ 75. million payment 2006 $ 20. million milestone payment august 2007.
 collaboration revenue december 31.
 cost-sharing regeneron expenses.
 performance milestone payments.
deferred revenue milestone payments.
 bayer healthcare revenue $ 75. $ 67.
 vegf trap-eye development expenses increased 2010 costs phase 3 copernicus trial.
 earned $ 10. million milestone payments positive 52-week 6-month copernicus.
 july 2009 $ 20. million milestone payment first patient copernicus.
 deferred revenue $ 75. million up-front $ 20. million milestone payment $ 47. million deferred recognized revenue.
 licensing revenue velocimmune license agreements astrazeneca astellas $ 20. million payments deferred recognized revenue.
 2010 recognized $ 40. million revenue.
 astellas $ 165. million up-front payment deferred recognized seven-year period.
 $ 176. 6 million deferred.
 $ 25. 3 million $ 18.4 million arcalyst ae sales right return rebates estimated.
 limited return experience 2008 2009 sales deferred until right return rebates estimated.
 first quarter 2010 company determined


production early 2012.
 output first line contracted sale long-term agreement.
 march 2011 joint venture thai beverage beverage container manufacturing facility vietnam production first quarter 2012.
 acquisitions.
 october 2011 acquired interests qmcp gain $ 9. 2 million.
 constructing new beverage container facility first quarter 2012.
 2010 north american manufacturer.
 january 2011 acquired european supplier aluminum aerosol containers bottles.
 note 3 financial statements.
 sales long-term contracts aerospace technologies segment cost-to-cost.
 2011 contract mix 60 percent cost-type contracts 33 percent fixed-price contracts.
 time material contracts.
 contracted backlog december 31 $ 897 million 50 percent fixed price contracts.
 aerospace technologies contract revenue cost progress completion.
contract payment schedules limitations funding sales accounts include earned not billed.
 return on average invested capital economic value added before diluted earnings per share cash flow free cash flow.
 measures adjusted consolidation costs acquisitions dispositions.
 nonfinancial measures production efficiency spoilage rates quality control environmental health safety statistics production sales volumes utilization sustainability.
 measures performance contract revenue fees proposal win rates backlog.
 operations consolidated sales earnings.
 2010 2009
 net sales $ 8630. $ 7630. $ 6710.
 net earnings ball corporation 444.
 increase net sales 2011 driven demand metal packaging improved beverage container volumes consolidation latapack-ball acquisition joint ventures extruded aluminum businesses improved aerospace program performance.
 business segment net earnings corporation discontinued operations plastics consolidation debt refinancing equity earnings gains acquisitions.
 measures.
 higher sales due acquisitions.
 higher net earnings $ 105. 9 million equity gains.


risk insurance brokerage services.
 years december 31, 2009 2008 2007
 revenue $ 6305 $ 6197 $ 5918
 operating income 900 846 954
 margin 14. 3%. % 13. 7%. 1%.
 2009 soft market 2007 retail brokerage line.
 business lines geographic areas.
 premium rates decrease commission revenues increased competition increased underwriting capacity.
 changes premiums impact insurance brokerage industry premiums.
 prices fell 2007 large middle-market accounts.
 2008 slowed.
 reinsurance brokerage line pricing 2009 down.
 difficult conditions disruptions global economy credit risk deterioration financial markets.
 reduced demand retail operational results.
 capacity decrease insurer fails withdraws coverages.
 revenues profitability lines types insurance.
 brokerage services generated 83% consolidated revenues 2009.
 revenues generated through fees commissions insurance investment income funds.
 revenues vary policy renewals business services influenced interest rates.
 industry compete with insurance brokerage firms brokers agents writers.
 address specialized product development risk management needs commercial enterprises professional groups insurance companies governments healthcare providers non groups affinity products professional liability life disability personal lines reinsurance services investment banking products mergers acquisitions financial advisory capital raising contingent capital financing insurance-linked securitizations derivative applications underwriting actuarial loss prevention administrative services manage captive insurance companies.
 expanded merger benfield reinsurance.
 products integrated with 2009.
 sale.
 cananwill finance.
 agreements with third parties


pension expense.
 special items $ 27. 6 $ 91.
 settlements benefits curtailments 7. 48.
 discount 2013 cost 3. 4%. 4 %. 2%. 2 %
. 4%. 9% 9 %
 return 6. 4%. 4 %. 9% 9 %
 compensation 3. 5%. 5 %. 5%. 5 %
 expense decreased lower pension settlements loss amortization discount rates lower returns.
 pension settlement losses.
 2019 $ 7. losses $ 6. $ 5.
 pension plan. 8 termination benefits.
 non income.
 2018 $ 48. pension settlement loss $ 43. transfer pension assets obligations.
. settlement losses payouts.
 pension plan. 4 termination benefits.
.
equalization ruling 26 2018 united kingdom high court pension plan 2019 pensions.
 estimated increasing benefits.
.
 additional benefits prior service cost projected benefit obligation loss $ 4. 7 first quarter fiscal year 2019.
 amortizing cost average life expectancy.
.
 pension expense $ 5 to $ 20 settlement losses $ 5 to $ 10.
 lower interest cost higher assets offset higher loss amortization lower discount rates.
 expense $ 105 amortization actuarial losses.
 2019 losses $ 76.
 losses $ 424. income
 amortized pension expense not offset future gains.
 discount rate amortization.
 pension funding contributions funded benefit payments unfunded plans.
 contributions earnings benefits surpluses.
contributions funding requirements tax deductions.
 analyze liabilities demographics contributions.
 2019 2018 cash contributions payments $ 40. 2 $ 68. 3.
 2020 contributions $ 30 to $ 40.
 based contributions retirements.
 contributions funding legislation discount rates investment performance plan design.
 contractual obligations page 37 future contributions.


republic services .
 financial statements 2014 discount rate obligations expected benefit payments high quality bonds.
 yield curve discount rate.
 yields.
 term obligation retirement dates seven years.
 evaluated historical performance long-term return projections plan assets asset mix timing outflows.
 total return investment approach equity fixed income investments long-term return.
 minimize plan expenses outperforming liabilities.
 risk tolerance plan liabilities funded status financial condition.
 investment portfolio diversified equity fixed income investments.
 diversified.
.
 stocks growth value small capitalizations.
 derivatives market exposure leverage portfolio beyond market value.
 risk monitored annual liability measurements asset liability studies quarterly portfolio reviews.
 table summarizes target asset allocation december 31 2018 actual 2018 2017.

 december 31 2018 targetassetallocation 2017
 debt securities 82% ( 82 % ) 83% ( 83 % ) 70% 70 %
 equity securities
 100% 100 %
 asset allocations reviewed rebalanced funded status.
 strategy diversified portfolio average long-term return. 20%.
.
 assets allocated debt equity portfolios fluctuations.
 asset allocation target ranges strategies reviewed independent consulting firm.


treasury.
 unamortized discount debt costs amortized 2022.
.
 issued $ 1. 5 billion unsecured obligations.
 debt securities $ 750 million 4. 25%. 2021 $ 750 million repaid 2013 maturity.
 proceeds repurchase blackrock 2019s series merrill lynch.
.
 interest 4. 25%. notes 2021 payable semi-annually may november 24 $ 32 million per year.
 redeemed maturity price.
 unamortized discount debt costs amortized 2021.
.
 2009 issued $ 2. 5 billion unsecured.
 three $. billion 2. 25%. notes repaid 2012 $ 1. billion 3. 50%. repaid 2014 $ 1. billion 5. notes 2019.
proceeds offering borrowings cp program acquisition barclays global investors 2009 corporate purposes.
 interest 2019 notes $ 50 million payable annually june december 10.
 redeemed maturity redemption price.
 unamortized discount debt costs amortized remaining term 2019.
.
 issued $ 700 million. unsecured unsubordinated notes september 15 2017.
 proceeds acquisition fund-of-funds business remainder general corporate purposes.
 interest payable semi-annually march september 15 $ 44 million per year.
 notes redeemed maturity redemption price.
 unamortized discount debt issuance costs amortized remaining term 2017 notes.
.
 leases office spaces agreements 2035.
 future commitments.
 134 133
 2018 131
 125
 2020
rent office equipment lease $ 136 million $ 132 million $ 137 million 2015 2014 2013.
.
 december 31 2015 company had $ 179 million capital commitments sponsored investment funds.
 private equity real estate infrastructure opportunistic.
 excludes commitments third-party.
 $ 179 million $ 38 million contingent commitments expired.
 timing funding unknown callable.
 unfunded commitments not recorded consolidated statements.
 future commitments binding.
 intends additional capital commitments investment products.
.
 portfolio manager derivative transactions maximum potential exposure $ 17 million.
.
 business acquisitions.
 blackrock required payments performance targets.
 remaining contingent payments at december 31 2015 not significant statement financial included in other liabilities.


refining wholesale marketing gross margin difference prices refined products costs crude oil blendstocks purchased products manufacturing expenses depreciation.
 crack spread difference market prices refined products crude oil indicator impact price refining margin.
 crack spreads fluctuate crude.
 calculate midwest chicago.
 gulf coast crack spreads.
 light louisiana sweet prices 6-3-2-1 ratio 6 barrels crude oil 3 barrels gasoline 2 barrels distillate 1 barrel residual fuel.
 table average crack spreads quarter midwest chicago gulf coast markets 2008.
 spreads per barrel.
 6-3-2-1. 71. 81. 31.
 gulf coast 6-3-2-1. 39. 32.
market changes refining wholesale marketing gross margin impacted by crude oil selling prices refined products commodity derivative instruments cost products resale.
 process sour crude oil profitability.
 impacted manufacturing costs maintenance price natural gas.
 2008 margin 43 percent decrease rm&t income.
 average margin per gallon decreased 37 percent 11. 66 cents 2008 from. 48 cents 2007 due crude oil prices lagging wholesale price realizations.
 retail marketing gross margin gasoline distillates impacts&t profitability.
 demand local competition seasonal demand fluctuations wholesale supply economic activity weather conditions demand.
 2008 demand retail petroleum prices slowdown activity.
 gross margin merchandise retail constant.
 profitability pipeline transportation on volumes crude oil refined products.
volume crude oil affected supply refiner demand markets pipelines.
 key factors production levels alternative transportation refinery maintenance.
 refined products affected production demand.
 gasoline summer declines fall winter distillate demand ratable.
 transportation alternatives system maintenance influence product movements.
 integrated gas stranded natural gas resources supply gap declining production demand.
 operations include marketing transportation products natural gas methanol. west africa.
 investment 60 percent ownership production facility equatorial guinea sells lng prices natural gas prices.


five-year return citi 2019s common stock 201cc 201d held 65691 stockholders january 31 2018 s&p 500 index financial index five december 31 2017.
 $ 100 invested december 31 2012 citi 2019s common stock s&p 500 index index dividends reinvested.
 five-year return s&p 500 financials.
 100.
 131. 132. 135.
 137. 150. 156.
. 152. 153
. 170. 188.
 193. 208. 230.


capital commitments ship construction capital expenditures refurbishment.
 expenditures $ 1. 6 billion $ 1. 2 billion $ 0. 7 billion 2019 2020 2021.
 export credit financing $. billion $. billion $. 2 billion.
 increase depreciation amortization expense.
 six ships 140000 gross tons 3300 berths delivery 2022 2027.
 breakaway class ship 168000 gross tons 4000 berths fall 2019.
 two explorer class ships 2020 2023.
 55000 gross tons 750 berths.
 oceania two allura class ships 2022 2025.
 67000 gross tons 1200 berths.
 combined contract prices 11 ships. 9 billion $. 1 billion.
.
 export credit financing 80% contract price.
 contractual breaches cancellations.
events forfeiture deposits claims losses impact business financial condition results.
 capitalized interest 2018 2017 2016 $ 30. 4 million $ 29. million $ 33. 7 million associated construction newbuild ships.
 off-balance sheet transactions contractual obligations interest payments long-term debt less than 1 year 1-3 years 3-5 years more 5 years.
 long-term debt $ 6609866 $ 681218 3232177 929088 1767383
 operating leases
 ship construction contracts 5141441
 port facilities 1738036
 974444 222427
 1381518
 15973855 2143649 4915507 5304579
 long-term debt includes discount premiums $ 0. 4 million capital leases.
debt deferred financing fees debt balance.
 operating leases offices vehicles equipment.
 ship construction contracts newbuild ships euro.
 dollar exchange rate.
 export credit financing banks.
 include leonardo explorer allura subject financing italian government approvals.
 note 17 2014 financing.
 port facilities.
 interest includes fixed variable rates libor constant.
 future commitments service maintenance business enhancement capital expenditure contracts.
 excludes $ 0. 5 million unrecognized tax benefits.


accelerated.
 amortization expense intangibles $ 4. 2 million $ 4. 1 million $ 4. 1 million 2010 2009 2008.
 estimated annual amortization expense balance 2011 2015 $ 4. 8 million.
 long-lived assets reviewed.
 reduced to fair value.
 2010 recognized impairment charges $ 1. 3 million.
 no adjustments carrying value 2009 2008.
 fair value financial instruments debt reflected balance sheet.
 2010 fair value term loans approximated carrying value $ 590 million.
 2009 value $ 570 million below carrying value $ 596 million interest rate margins below.
 estimated fair value upfront cash payment.
 credit rating cash inflows outflows.
 cash equivalents net trade receivables accounts payable fair value.
apply market income financial assets liabilities cash surrender life deferred compensation interest rate swaps.
 value disclosures note 7. mechanical products six-month warranty.
 remanufactured engines three-year warranty.
 record estimated warranty costs.
 changes warranty reserve.
 balance january 1 2009 $ 540
 5033
 claims -4969
 december 31 2009
 acquisitions december 31 $ 2063
 self-insurance reserves medical benefits.
 purchase stop-loss insurance liability.


issuer purchases equity securities section 12 exchange act shares purchased price value.
 price value
 january 1-31 2007 $ 76. $ 651
 february 1-28 2007 $ 75. $ 6731
 march 1-31 2007 8187472 $ 75. $ 6115
 january 16041331 $ 75.
 april 1-30 2007 $ 77. $ 5846
 may 1-31. $ 5485
 june 1-30 2007. $ 5155
 april june 30 11861473 $.
 july 1-31 2007 1646251 $.
 august 1-31 2007 2329478 $ 87.
 september 1-30 $. $ 4642
 july $ 88. 5787200 $ 4642
october 2192302 88. 2178500 4448
 november 1-30 1702375. 1692000
 december 1-31 1896612. 1873500 4149
 october. 5791289. 4149
 january december 31 39756386 81. 42 4149
 authorizations stock options 34068 january 20091 february 35772 march 71521 april 225419 may 74233 june 135951 july 82178 august september 13802 october 10375 november 23112 december.


table summarizes rental program license expense.
 year ended december 31 millions 2008 2007 2006
 rental expense $ 436 $ 358 $ 273
 programming license $ 548 $ 484 $ 350
 minority owner group comcast spectacor initiate exit process value determined by appraisal.
 option acquire. 3%. interest based appraised market value.
 sell.
 exit process includes interest comcast sportsnet.
 minority owners trigger exit process fair value.
 defendants two class actions filed december 2003 massachusetts pennsylvania.
 massachusetts 201cboston cluster 201cphiladelphia chicago clusters.
 plaintiffs allege transactions unlawful horizontal market restraints seek damages under antitrust statutes treble damages.
motion dismiss pennsylvania case denied december 2006 philadelphia chicago cluster subscribers certified may october 2007.
 motion dismiss massachu- setts case eastern denied july 2007.
 proceeding discovery 2019 claims philadelphia cluster.
 other clusters stayed pending.
 defendants class action united states central california september 2007.
 allege video agreements cable distributors reselling channels violation federal antitrust laws.
 seek treble damages loss ability pick channels injunctive relief resell channels.
 potential class states subscribed expanded basic video service.
 filed motions dismiss amended complaint april 2008.
 june central district denied motions.
 july 2008 motions certify issues.
 central district denied certification motions.
january 2009 central district approved dismissing subscriber.
 motion class certification proceeding april 2009.
 current former officers defendants class action lawsuit eastern pennsylvania january 2008.
 motion dismiss february 2008.
 plaintiff sought amend granted.
 amended complaint may 2008 two officers defendants.
 class purchasers securities february december.
 defend ants violated securities laws misstatements omissions.
 sought damages.
 june 2008 motion dismiss.
 august 25 court granted motion dismiss denied amend.
 appealed decision dis- missal final.
 current officers named defend ants class action lawsuit eastern district february 2008.
 class retirement-investment 401 k plan stock.
 defendants breached fiduciary duties.
plaintiff seeks damages.
 filed complaint dismiss.
 october 29 annual report form 10-k


ebitda increased $ 574 million 5% 2017 from 2022 postpaid prepaid service revenues un- carrier initiatives promotional activities metropcs brand wholesale other revenues offset higher selling expenses lower gains disposal spectrum licenses $ 600 million $ 235 million 2017 $ 835 million 2016 higher cost services expense higher net losses equipment negative impact hurricanes $ 201 million insurance recoveries.
 ebitda increased $ 2. 8 billion 36% ( % 2016 increased revenues higher gains disposal spectrum licenses $ 672 million $ 835 million 2016 $ 163 million 2015 lower losses equipment cost control metropcs business higher selling.
 imputed discount eip receivables other revenues.
 ebitda.
.
 applied change retrospectively effect years december 31 2016 2015.
millions december 31 2016 accounting principle adjusted
 operating income $ 3802 $ 248 $ 4050 $ 2065 $ 414 $ 2479
 interest income 261 -248 420 -414 6
 net income 1460 733
 net income service revenue 5% ( 5 % ) 3% 3 %
 adjusted ebitda $ 10391 $ 248 $ 10639 $ 7393 $ 414 $ 7807
 ebitda margin 37% ( 37 % ) 1% 1 % ) 38% 38 % 30% 30 % 31% 31 %
 37% 37 % liquidity resources cash equivalents operations long-term debt common stock capital leases sale receivables financing arrangements secured revolving credit facilities.