calculating earnings to fixed charges earnings before taxes minus equity investees plus fixed charges.
 interest expense rental expense.
 years 2010 2009 earnings for fixed charges inadequate cover charges $ 37. 0 million $ 461. 2 million.
 ebitda consolidated net income before interest expense tax expense depreciation amortization.
 adjusted ebitda non-cash equity compensation goodwill impairment charges sponsor fees consulting fees debt-related legal accounting costs equity investment income losses severance retention costs early extinguishment debt asset dispositions outside non-recurring extraordinary unusual gains losses expenses.
 reconciliation of ebitda adjusted ebitda table.
 non-gaap financial measures.
 performance amounts.
 measures differ from measures.
ebitda adjusted information operating performance cash flows future debt capital expenditures working capital requirements.
 primary measure financial covenants credit agreements.
 table net income ebitda adjusted ebitda.
 2013 2012 2011 2010 2009
 net income loss $ 132. $ 119. 17. -373. 373.
 depreciation amortization 208. 210. 204. 209. 218.
 income tax expense 62. 67. 11. -7. -87.
 interest expense 250. 307. 324. 391. 431.
 653. 703. 557. 564. 188.
 non-cash equity-based compensation 8. 22. 19. 11 15
 fees. 5
 consulting debt-related professional fees.
goodwill impairment 2014 241.
 loss long-term debt 64. 17. 118. -2. 2014
 litigation -4.
 secondary-offering expenses 75.
 adjustments 8. 13. 11. 7.
 ebitda $ 808. $ 766. $ 717. $. 465.
 non litigation.
 retention costs equity investment income severance costs gain sale informacast software equipment.


consolidated financial statements.
 morgan chase & co.
.
.
 2003 annual report securities financing activities resale repurchase borrowed loaned finance inventory positions short positions settle obligations.
 customers 2019 needs.
 securities purchased resale repurchase collateralized financing transactions carried consolidated sheet amounts accrued interest.
 resale repurchase agreements reported.
 chase possession securities.
 monitors market value underlying collateral.
.
 requests additional collateral.
 similar transactions accounted 201cbuys 201d 201csells 201d.
 purchase securities forward obligation.
 recorded consolidated balance sheet fair value changes value recorded trading revenue.
 $ 15 billion $ 8 billion at december 31 2003 2002.
transactions sfas 140 $ 8 billion $ 13 billion 2003 2002.
 unrealized gain loss insignificant.
 securities borrowed lent recorded at cash collateral.
 government equity.
 jpmorgan chase monitors market value calls additional.
 fees interest expense.
 2003 2002
 purchased resale $ 62801 $ 57645
 borrowed 41834
 sold repurchase $ 105409 $ 161394
 loaned
 jpmorgan chase pledges instruments collateralize repurchase agreements.
 pledged securities.
 december 31 2003 $ 210 billion.
 collateral obtained resale-borrowing agreements.
 $ 197 billion repledged short sales.
.
.
 loans principal amount loan losses unearned income deferred loan fees.
loans sale lower cost fair value.
 secondary market trading short.
 loans trading assets carried fair value gains losses revenue.
 interest income recognized level return term.
 nonaccrual loans accrual interest discontinued.
 payment principal interest doubt 90 days past due collateral insufficient.
 interest accrued not collected reversed against interest income.
 amortization deferred loan fees suspended.
 interest income nonaccrual loans recognized cash.
 doubt cash carrying value.
 restored accrual interest principal payments assured.
 consumer loans charged loan losses stages delinquency.
 credit card loans charged off 180 days past due 60 days bankruptcy.
 residential mortgage products charged 180 days past due.
 consumer products charged 120 days past due.
interest automobile financings loans nonaccrual loan policy


apple inc.
 2017 form 10-k stock performance graph shareholder return dividend reinvested s&p 500 s&p information technology index dow jones.
 supersector index five years 30 2017.
 assumes $ 100 invested common stock s&p 500&p.
 index market 28 2012.
 historic stock price performance not future.
 $ 100 invested 9/28/12 reinvestment dividends.
 last day fiscal year common stock september 30th indexes.
 2017 s&p mcgraw hill financial.
.
 dow jones.
.
.
 apple inc. $ 100 74
 s&p 500 index
 s&p information technology index 107
 dow jones. supersector index $ 100 105


jpmorgan chase.
.
.
.
.
 securities borrowed cash collateral.
 government equity.
 market value daily calls additional collateral.
 fees interest income expense.
 table collateralized financings.
 31 millions 2008 2007
 securities purchased resale agreements $ 200265 $ 169305
 borrowed
 repurchase agreements $ 174456 $ 126098
 loaned
 resale agreements $ 20. 8 billion $ 19. 1 billion 2008 2007.
 securities borrowed $ 3. 4 billion.
 repurchase agreements $ 3. billion $ 5. 8 billion 2008 2007.
 jpmorgan chase pledges instruments repurchase agreements.
 pledged securities sold repledged consolidated balance sheets.
december 31 2008 firm received securities collateral $ 511. 9 billion.
 collateral obtained resale borrowing agreements.
 $ 456. 6 billion repledged delivered used repurchase lending short sales.
 accounting origi nated purchased trading strategy.
 loans acquisition.
 purchased loans credit deterioration payments credit-impaired.
 measurement framework loans financial statements 2022 principal amount net loan losses unearned income deferred loan fees costs investment lower cost fair value valuation changes revenue held-sale fair value trading purchased credit-impaired loans investment account ed sop 03-3 measured fair value future credit losses.
 allowance loan losses not recorded acquisition date.
 note 5 pages 156 2013158 annual report fair value accounting.
note 6 pages 158 2013160 annual report loans trading assets.
 interest income recognized method level rate return term.
 loans transferred-sale portfolio.
 recorded lower cost fair value.
 credit-related losses charged losses interest rates recognized noninterest revenue.
 loans transferred lower cost fair value.
 assessed impairment firm 2019s allowance methodology.
 note 15 pages 178 2013180 annual report.
 nonaccrual loans accrual interest continued.
 payment interest doubt 90 days past due collateral insufficient.
 loans charged allowance losses loss realized.
 interest accrued not collected reversed against interest income.
 amortiza tion net deferred loan fees suspended.
 interest income nonaccrual loans recognized received cash.
doubt lectibility loan principal cash carrying value.
 loans restored future interest principal assured.
 consumer loans charged losses stages delinquency federal financial institutions council policy.
 credit card loans charged month 180 days past due 60 days bankruptcy.
 residential mortgage products charged value 180 days past due.


management financial condition results operating income.
 operating income reconciliation
 10646 2016 income
 1250 lower platform unit cost
 905 lower expense
 625 higher gross margin
 -645 higher factory start-up costs 10nm process technology
 8166 2015 income
 higher platform unit costs
 lower gross margin
 435 lower start-up costs 14nm process technology
 lower production costs 14nm products
 lower operating expense
 224
 10327 2014 income
 higher gross margin selling prices lower sales.
 lower gross margin sales prices.
 platforms energy-efficient performance server network storage applications.
 lowering total cost ownership optimizations enterprise cloud communications segments.
2016 launched platforms processor e5 v4 clouds energy-efficient server network storage.
 xeon processor e7 v4 four cpus high performance real-time analytics in-memory computing industry-leading reliability availability serviceability.
 xeon phi 2122 knights 72 high-performance processor cores integrated memory common software programming.
 parallel compute memory bandwidth-intensive workloads.
 performance supercomputers calculations data artificial intelligence.
 2017 next generation xeon processors compute storage network phi deep learning single-socket products e3 xeon-d.


contents ii item 8 schlumberger. netherlands antilles subsidiary companies common stock treasury.
 balance january 1 2001 667085793 -94361099
 stock purchase plan 1752833
 shares directors 4800
 optionees
 december 31 2001 667094178 -91203780 575890398
 2677842
 shares directors 3500
 optionees
 acquisition technoguide 1347485
 december 31 2002 -84931553 582173115
 2464088
 shares directors
 optionees
 balance december 31 2003 -81157660
 consolidated financial statements 2003


echostar communications corporation financial statements closing price common stock last day quarter sold.
 october 1 2007.
 2000 2001 2002 employees purchased 58000 80000 108000 shares stock.
 echostar sponsors.
 voluntary contributions matched 50% echostar maximum annual contribution $ 1000 per employee.
 contributions totaled $ 1. 6 million $ 2. 1 million $ 2. 4 million 2000 2001 2002.
 discretionary contribution deductible limit code.
 cash echostar stock.
 unvested balances matching discretionary contributions.
 discretionary contributions $ 7 million $ 225 thousand $ 17 million 2000 2001 2002.
.
 future lease payments leases december 31 2002.
 2003 17274
 2004 14424
 2005 11285
 2006 7698
2007 3668
 1650
 lease payments 55999
 rent expense leases $ 9 million $ 14 million $ 16 million 2000 2001 2002.
 december 31 echostar $ 359 million.
 majority echostar receiver systems components.
 purchases expected 2003.
 purchases cash balances future cash flows.
 patents intellectual property competitors obtain patents rights products.
 patents.
 damages patent infringement tripling damages.
 estimate licenses


.
 debt 30 2016 2015.
-term borrowings $ 935. $ 1494.
 371. 435.
 4918. 3949.
 $ 6225. 5879.
 borrowings obligations $ 133. 234.
 802. 1260.
 borrowings $ 935. 1494.
 average interest rate short borrowings. 1%. 8%.
 $ 121. 2016 $ 97. 5 2015 $ 132. 4 2014.


goldman sachs group.
 subsidiaries management risk committee risk governance committee approve market risk limits sub-limits at firmwide business product levels risk appetite statement.
 market risk management sets limits at product desk levels.
 assist senior management risk profile.
 sub-limits set below approved.
 maximum exposure without senior management approval decisions to desk managers traders.
 sub-limits management tool escalation risk tolerance.
 distribute risk among businesses with activity client demand.
 market risk limits monitored daily by risk management limits.
. escalated to senior managers risk committee.
 remediated by inventory reduction increase risk limit.
 model review validation testing models reviewed incorporate changes positions variations market conditions.
 management performs validations.
changes to var stress testing models reviewed with risk financial officer approved by firmwide risk committee.
 risk management.
 in technology market risk independent calculation var stress measures position levels attribution report views. ad hoc analyses.
 analyze var firmwide detailed levels risk category business region.
 tables present average daily period-end var high low var.
 diversification effect difference between four risk categories.
.
 average daily var by risk category.
 2017 2016 2015
 interest rates
 equity prices
 currency rates
 commodity prices
 diversification effect
 average daily var decreased to $ 54 million 2017 from 63 million 2016 due to reductions risk categories offset decrease diversification effect.
 due to lower volatility.
average daily $ 63 million 2016 76 million 2015 risk categories offset diversification.
 reduced exposures.


part ii item 5 2013 market registrant common equity stockholder matters issuer purchases securities common stock listed new york stock exchange traded symbol 201cpnc. close february 16 2017 60763 shareholders.
 entitled dividends declared board directors funds.
 board pay dividends past periods preferred stock capital securities paid.
 quarterly cash dividends.
 future dividends economic market conditions financial condition operating results contractual restrictions government regulations policies regulatory capital limitations.
 dividend subject capital adequacy planning federal reserve bank regulators.
 federal reserve dividends approval.
 information dividend restrictions restrictions loans dividends advances supervision regulation section item 1 risk factors capital liquidity management 7 10 borrowed funds 15 equity 18 regulatory matters consolidated financial statements item 8.
information pnc common stock prices dividends statistical information item 8 report.
 compensation plans pnc equity securities authorized december 31 2016 item 12.
 stock transfer agent registrar computershare trust company.
 250 royall street canton 800-982-7652 shareholders contact dividends shareholder services.
 common stock performance item 5.
.
.
 repurchases pnc common stock fourth quarter 2016 table total shares purchased average paid maximum number shares.
 october 1 2013 31 2277 $ 91.
 november 1 2013 1243 $ 103.
 december 1 2013 31 1449 $.
 4969 $ 101.
 pnc common stock purchased employee benefit plans forfeitures unvested restricted stock awards employee payroll tax withholding.
11 employee benefit 12 stock compensation plans pnc common stock.
 march 11 2015 approved stock repurchase program 100 million shares pnc common stock effective april 1 2015.
 repurchases privately transactions market economic conditions regulatory capital considerations credit contractual regulatory limitations.
 2016 share repurchase programs $ 2. 0 billion $ 200 million.
 2017 $ 300 million increase repurchase.
 fourth quarter repurchased 4. 9 million shares stock average price $ 101. 47 per share aggregate repurchase price $. 5 billion.
 liquidity capital management 7 share repurchase programs july 1 2016 june 30 2017 capital plan.
 pnc financial services group.
 form 10-k


jpmorgan chase. annual report results results three-year period december 31.
 business segment.
 accounting estimates pages 149 2013 154.
 revenue 31.
 investment banking fees $ 6190 7087 5526
 principal transactions 10894
 lending deposit fees 6340
 asset management commissions 13499
 securities gains 2965
 mortgage fees 3870
 credit card income
 other income
 noninterest revenue
 interest income
 revenue $ 102694 100434 67252
 revenue $ 102. 7 billion up $ 2. 3 billion 2%.
 securities gains private equity higher asset management fees fees higher other income card income.
 investment banking fees decreased 2009 lower equity underwriting fees higher debt underwriting fees.
 competitive markets flat equity underwriting m&a volumes lower equity underwriting advisory fees strong loan syndication high-yield bond volumes drove debt underwriting fees.
 results pages 69 201371.
 principal transactions revenue trading investing increased 2009.
 driven by private equity business gains 2010.
 trading revenue decreased lower results higher revenue ib firm credit spread liabilities.
 equity results pages 69 201371 89 199.
 lending- deposit-related fees decreased 2010 legislation offset higher lending fees ib business volume higher commitment letter-of-credit fees.
 results pages 69 201371 72 82 84.
 asset management administration commissions revenue increased from 2009.
increase reflected higher asset management fees am higher market levels higher administration fees tss.
 increase offset by lower brokerage commissions ib lower market volumes.
 segment discussions am pages 86 201388 tss pages 84 201385.
 securities gains higher 2010 2009 repositioning portfolio interest rate exposure.
 pages 89 201390.
 mortgage fees income increased 2010 higher mortgage production revenue increased origination volumes wider margins.
 increase offset by higher repurchase losses rfs higher estimated losses.
 mortgage pages 74 201377.
 repurchase losses liability discussion pages 98 2013101 pages 275 2013280.
 credit card income decreased 2010 due accounting guidance assets liabilities credit card securitization trusts.
guidance fees credit card securitization trusts offset net


repurchase equity securities table purchases fourth quarter 2008 number shares purchased average paid plans maximum.
 shares average price paid maximum
 october 1-31 $.
 november 1-30 4468.
 december 1-31 12850.
 47022.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
. restricted shares common stock employee stock compensation plans offset tax withholding obligations shares fourth quarter 2008.
 average price month withheld shares calculated dividing value tax withholding obligations number shares.


packaging sales 2007 $ 265 million 180 million 2006.
 2005 $ 105 million international paper acquisition.
 profits $ 6 million 2007 $ 3 million 2006 loss $ 4 million spending economic activity.
 raw material energy costs freight costs manufacturing efficiency product mix.
 sales increased 12% 2006 24% 24 % 2005.
 profits 15%.
 improved sales price 52 higher sales volumes.
 mill operations international paper cartonboard.
 offset higher raw material energy costs 53 million unfavorable mix increased freight costs 3.
.
 profit american consumer packaging net sales $ 2. 4 billion 2007 2006 $. billion 2005.
 earnings $ 143 million 2007 129 million 2006 121 million 2005.
 paperboard sales volumes increased folding improved demand.
 sales price improved.
higher sales prices improved manufacturing wood energy costs.
 foodservice sales volumes higher.
.
 hot cups food containers higher margins.
 costs bleached board polystyrene offset improved manufacturing costs waste.
 shorewood sales volumes declined weak demand home tobacco display.
 margins declined.
 raw material costs higher bleached board offset improved manufacturing lower operating costs.
.
 coated paperboard sales volumes even sales price.
 fewer mill maintenance outages.
 costs wood polyethylene energy higher.
 foodservice.
 shorewood sales volumes decline cost improve restructuring.
 consumer packaging net sales 2007 $ 280 million 230 2006 2005.
 sales volumes higher stronger demand improved productivity.
 sales price improved.
 operating earnings $ 37 million declined 39 2005.
net sales offset input costs wood energy freight.
 2008 sales volumes prices fourth quarter.
 machine performance mix wood costs higher energy costs higher.


value options exercised.
 difference market paid 2011 2010 2009 $ 96. 5 million $ 29. 6 million $ 4. 7 million.
 proceeds from $ 217. 4 million $ 240. 4 million $ 15. 1 million.
 proceeds exercises cash flows $ 217. 2 million $ 216. 1 million $ 12. 4 million net shares surrendered tax obligations.
 withholding amount based minimum statutory withholding requirement.
 restricted stock unit award activity october 29 2011 changes value per share.
 october 30 2010 $.
 units granted.
 restrictions lapsed.
 units forfeited.
 october 29 2011.
 $ 88. 6 million unrecognized compensation cost unvested share-based awards stock options restricted stock units.
cost expected recognized over 1. 3 years.
 total value shares vested 2011 2010 2009 $ 49. 6 million $ 67. 7 million $ 74. 4 million.
 since august 2004.
 board authorized repurchase $ 5 billion common stock.
 repurchase outstanding shares open market privately negotiated transactions.
 repurchase program all shares.
 october 29 2011 repurchased 125. 0 million shares $ 4278. 5 million.
 additional $ 721. 5 million repurchase.
 repurchased shares unissued.
 future repurchases dependent factors cash financial performance liquidity.
 repurchases shares employee tax withholding obligations price options equity compensation plans.
.


republic services.
 financial statements 2014 monitor credit worthiness financial institutions.
 credit risk limited variety customers markets dispersion operations.
 commercial industrial municipal residential customers united states puerto rico.
 credit evaluations require collateral receivables.
 allowance doubtful accounts credit risk age historical trends economic conditions.
 collection transfer recycling disposal services.
 recorded billed revenue earned claims parties settled cash.
 estimated realizable value.
 provisions evaluated monthly collection experience age information economic conditions.
 review balances account.
 reserves accounts 90 days.
 past due receivable balances written-off collection unsuccessful.
 activity allowance doubtful accounts years 31 2013 2012 2011.
 balance beginning year $ 45. $ 48. $ 50.
 additions.29. 7 21. 0
 accounts written-off. 1 23. 5 32. 8 23. 8
 balance end year $ 38. 3 $ 45. 3 $ 48. 1
 cash december 31 2013 $ 169. million.
 obtain funds tax-exempt bonds financing expenditures landfills transfer stations collection recycling centers.
 deposited trust accounts.
 restricted restricted consolidated balance sheets.
 financial assurance governmental agencies collection contracts landfills environmental remediation permits business licenses.
 cash trust funds escrow accounts.
 record cost.
 expenditures additions improvements maintenance repairs charged.


.
 rothschild ownership opus one.
 produces fine wines napa valley winery.
 acquisition robert mondavi supports portfolio premium super-premium fine wine categories.
 robert mondavi recognition.
 majority sales united states.
 leveraging brands.
 intends distribution.
 mondavi acquisition supports strategy strengthens competitive position core markets.
 presence premium super-premium fine wine sectors distribution international markets.
 growth opportunities premium super-premium fine wines united kingdom markets.
 paid cash robert mondavi shareholders $ 1030. 7 million.
 incurred direct acquisition costs $ 12. 0 million.
 purchase financed borrowings 2004 credit agreement.
 acquired net assets recorded fair value date.
 purchase price based on estimated future operating results robert mondavi operating cost synergies.
 results robert mondavi reported constellation wines segment included consolidated statements income since acquisition.
 table summarizes values assets acquired liabilities assumed acquisition adjusted final appraisal.
 current assets $ 513782
 property plant equipment 438140
 other assets 124450
 trademarks 138000
 goodwill 634203
 assets acquired 1848575
 current liabilities 310919
 long-term liabilities
 liabilities assumed 805914
 net assets acquired $ 1042661
 trademarks not subject amortization.
 goodwill deductible tax.
 sold vineyard properties assets winery properties 2006 2005.
 net proceeds $ 170. million sale.
.
 no gain loss recognized sale.
 acquired control hardy capital stock.
 50% ownership pacific wine partners.
acquisition hardy pwp 201chardy acquisition. wine wineries vineyards regions new zealand united states marketing sales operations.
 october 2005 pwp merged subsidiary.
 cash common stock hardy shareholders $ 1137. 4 million.
 acquisition costs $ 17. 2 million.
.
 $ 1. 6 million reduction purchase price interest.
 consolidated statement income february 29 2004.
 cash purchase price $ 1060. 2 million financed with $. 2 million borrowings credit $ 400. million bridge loan.
 issued 6577826 shares common stock valued $ 77. 2 million closing market price 2003.
 purchase price based discounted cash flow analysis distribution international markets presence australian winemaking regions.
 hardy businesses common growth orientation operating philosophy.
hardy acquisition 2019s growth


note 8 consolidated financial statements.
.
 2007 paper meet capital expenditures service debt working capital dividend requirements cash balances operations divestiture proceeds facilities.
 $ 3. 0 billion liquidity cash flow variability economic cycles.
 2006 $ 750 million 364-day $ 500 million march 2007. quarterly $ 1. 25 billion $ 1. 5 billion march 2011 fee. quarterly.
 october 2006 amended receivables securitization program $ 1. 2 billion. november 2007 $ 1. billion. october 2009.
 december 31 2006 no borrowings bank credit agreements receivables securitization program.
 international paper investments. subsidiary $ 100 million bank credit agreement december 2007 $ 40 million borrowings outstanding.
 debt capital markets long-term funding cash divestiture.
decisions guided by capital structure planning liability management practices.
 goals financial flexibility preserve liquidity interest expense.
 majority debt accessed global markets.
 with debt covenants at december 31 2006.
 minimum net worth $ 9 billion maximum debt to capital ratio investment grade credit rating.
 third quarter reaffirmed long-term credit rating bbb revised to stable upgraded short-term credit rating a-3 to a-2.
 long-term baa3 short-term p-3.
 obligations for future payments debt lease purchase obligations millions.
 total debt $ 692  $ 129 $ 1143 381 3680
 lease obligations 144 117 94 74 60 110
 purchase obligations 2329 462 362 352 323 1794
$ 3165 708 1599 1624 764 5584
 debt principal payments.
 $ 76 million lease obligations 2007 23 million 2008 19 2009 15 million 2010 7 2011 5 million 7 million.
 $ 1. 3 billion purchase obliga 2007 $ 335 million 2008 $ 199 million 2009 157 million 2010 143 million 2011 141 million $ 331 million.
 $ 2. 2 billion fiber supply agreements.
 uncoated papers packaging.
 options sale spin-off returning value strengthening balance sheet reinvestment


table presents net pension opeb cost years december 31 millions 2013 2012 2011 2010.
. 2012 2011
 pension cost $ 111 $ 89 $ 78 $ 51
 opeb cost 15
 pension cost $ 111 million 2013 $ 89 million 2012.
 driven decrease discount rate 3. 78%. opeb expense $ 15 million 2013 $ 13 million 2012.
 increase driven decrease discount rate 3. 48%.
 forward-looking securities act 1933 exchange act 1934.
forward-looking statements include ceo 2019s letter planned capital expenditures 201c2013 capital expenditures item 2 dividends item 5 201c2013 outlook 201cliquidity capital resources item 7 financial performance revenue growth cost savings goals targets objectives projections predictions business financial operational results future economic performance economic conditions operational service performance improvements effectiveness operations service expenditures infrastructure improvements equipment acquisitions strategic business acquisitions modifications transportation plans 2 capital new products services impact new regulatory activities legislation environmental remediation restoration tax matters claims litigation environmental costs commitments contingent liabilities labor negotiations results financial condition liquidity historical facts.
-looking statements identified by-looking terminology 201cbelieves 201cexpects 201cshould 201cintends 201cplans similar.
 of future performance results not accurate indications.
 statements information subject to risks uncertainties performance results differ.
 reflect good faith consideration management of available information based on assumptions reasonable.
 information assumptions subject to variables unknown events management influence.
 risk factors in item 1a could affect future results cause differ from.
 update amend risk factors in form 10-q 8-k 10-k.
 all forward-looking statements qualified by read with risk factors.
 statements speak of date made.
 no obligation to update information to reflect actual results changes assumptions factors.


losses expenses $ 28. 6 million net loss write-down fees $ 27. 1 million $ 1. 5 million legal fees.
 2022 fees services decreased 2017 higher legal regulatory fees reliance consultants.
 decrease offset increases 2022 licensing fee sharing agreements increased incentive payments contract increased costs revenue sharing agreements.
 increase offset lower expense equity energy contracts.
 2022 compensation benefits increased higher headcount cost living adjustments.
 expenses increased $ 54. 4 million.
 impact decrease expenses.
.
 loss datacenter legal fees $ 28. 6 2% 2 %
 professional fees outside services.
 foreign currency exchange rate fluctuation.
 licensing fee agreements.
 reorganization severance retirement costs.
 real estate taxes fees.
 other expenses -5. 7.
 $ 54.
 operating expenses increased 2016 losses expenses $ 28. 6 million net loss write-down fees $ 27. 1 million $ 1. 5 million legal fees sale leaseback datacenter.
 professional fees services increased legal regulatory efforts reliance consultants.
 net loss $ 24. 5 million unfavorable exchange rates cash $ 11. 3 million 2015.
 licensing fee sharing agreements increased revenue sharing equity energy contracts rates.


company recorded earnings $ 290 million 2018 $ 183 million 2017 $ 199 million 2016.
-tax loss $ 82 million $ 15 million 2017 $ 25 million 2016 remeasurement.
 debt.
 performance 2018 higher price realization strong demand.
 sales volumes increased softwood pulp linerboard offset decreased hardwood pulp.
 increased decreased linerboard.
 higher.
.
 input costs higher wood fuel chemicals.
 distribution costs impacted tariffs inflation.
 dividends $ 128 million 2018 $ 133 million 2017 $ 58 million 2019 sales volumes lower seasonal slowdown fewer trading days.
 sales prices decrease pulp linerboard.
 input costs flat distribution costs increase.
 $ 46 million. 5%. ownership.
 received dividends $ 25 million.
liquidity capital resources factor operating cash flow sensitive to pricing demand.
 focus pricing cost controls improved cash flow.
 cash uses 2018 focused on working capital capital spending debt reductions returning dividends share repurchases.
 totaled $ 3. 2 billion 2018 $ 1. 8 billion 2017 $ 2. 5 billion 2016.
 capital $ 439 million 2018 $ 402 million 2017 $ 71 million 2016.
 2018 increased capital spending.
 purchase weyerhaeuser's pulp $ 2. billion holmen business $ 57 million sale asia packaging $ 108 million.
 maintains average capital spending target depreciation amortization.
 capital spending $ 1. 6 billion 2018 118% depreciation amortization compared $ 1. 4 billion 2017.billion 110% depreciation amortization 2016.
 spending 69. 8%. to 132. 1%. 2018.
 capital spending 2016 excluding discontinued operations $ 111 million 2017 107 million 2016.
 industrial packaging 1061
 cellulose fibers
 printing papers
 subtotal 1547 1259
 spending $ 1572
 expenditures 2019 $ 1. 4 billion 104% depreciation amortization $ 400 million strategic investments.


.
 junior subordinated debt securities issued march 29 2004 $ 329897 thousand 6. 2%. securities may 24  2013.
 incurred pre-tax expense $ 7282 thousand amortization capitalized issuance costs securities.
 interest expense.
 2015 2013
 interest expense
 guarantee payment obligations.
.
 reinsurance trust agreements subsidiaries investments security assumed losses non-affiliated ceding companies.
 december 31 2015 total deposit trust accounts $ 454384 thousand.
 april 24 2014 two collateralized reinsurance agreements kilimanjaro limited bermuda reinsurer catastrophe reinsurance coverage.
 multi-year storm earthquake events.
 first agreement $ 250000 thousand reinsurance coverage storms southeastern united.
second agreement provides $ 200000 thousand storms southeast mid-atlantic northeast united states puerto rico earthquakes southeast.
 november 18 2014 company collateralized reinsurance agreement kilimanjaro.
 multi-year covers earthquake events.
 $ 500000 thousand states puerto rico canada.
 december 1 2015 two collateralized agreements kilimanjaro.
 multi-year.
 first agreement $ 300000.
 second agreement $ 325000.
 kilimanjaro financed catastrophe catastrophe bonds investors.
 april 24 2014 kilimanjaro issued $ 450000 notes.
 november 18 2014 $ 500000.
 december 1 2015 issued $ 625000 thousand notes.
proceeds series 2014-1 2015-1 held reinsurance trust invested us government funds rating 201caaam 201d standard.


consolidated financial statements union pacific corporation subsidiary companies references 201ccorporation subsidiaries railroad company.
.
 class i railroad.
 network 32236 route miles pacific gulf coast ports midwest eastern.
 gateways mexican gateways.
 own 26039 miles operate remainder trackage rights leases.
 serve western two-thirds country coordinated schedules rail carriers freight atlantic pacific coast southeast southwest canada mexico.
 export import traffic gulf coast pacific coast ports mexican canadian borders.
 railroad subsidiaries affiliates reportable operating segment.
 financial results segment.
 revenues contracts freight.
 reclassified six commodity groups agricultural energy industrial premium.
 disaggregation freight revenues.
agricultural 4469 4303 4209
 energy 4608 4498 3715
 industrial 5679 5204 4964
 premium 6628 5832 5713
 freight revenues $ 21384 $ 19837 18601
 subsidiary revenues 881
 accessorial revenues 502 458 455
 operating revenues $ 22832 $ 21240 $ 19941
 customers. origination outside.
 commodity mexico.
 freight revenues $ 2. 5 billion 2018 $. billion 2017 $. billion 2016.
 consolidated financial statements accounting principles.
.
.
 union pacific corporation subsidiaries.
 affiliated companies 50% % equity.
 intercompany transactions eliminated.
 majority-owned investments consolidation interest.
 maturities three months less.
.


1 million customers.
 edc 2265 mw capacity venezuela.
 purchase price allocation.
 $ 1700
 stockholders' equity
 capital stock -508
 paid-in surplus -245
 retained earnings -1353
 treasury stock
 adjustment assets liabilities fair value
 -1578
 deferred income tax
 employee severance plan
 investment subsidiaries
 elimination intangible asset
 assets -51
 goodwill negative
.
 cost acquisition allocated estimated fair value independent appraisal.
 severance plan workforce reduced 2500.
 costs cash payments.
 subsidiary 59% equity hidroelectrica alicura.
.
.
 1000 mw hydro facility neuquen.
 purchase price $ 205 million non-recourse debt.
 subsidiary 39%. 5% government province neuquen $ 9.
december 31 2000 company ownership interest 98%.
 employees own remaining 2%.
 purchase price property plant equipment depreciated.
 october 2000 subsidiary reliant energy international 50% interest el salvador energy holdings.
 three distribution companies salvador.
 purchase price $ 173 million.
 companies.
.
.
.
.
 3. 5 million people 60% population el salvador.
 subsidiary acquired 50% interest eseh.
 owns controlling interest three distribution companies.
 purchase price $ 325 million $ 176 million goodwill amortized over 40 years.
 december 2000 acquired shares kmr power corporation minority partner $ 64 million long-term liabilities $ 245 million.
 financed 699000 shares common stock.
kmr two gas power plants cartagena 100% 314 mw termocandelaria 66%


.
 shareholders 2019 equity loss december 31.
 millions 2009 2008 2007
 foreign currency translation $ 281 $ 68 $ 331
 unrealized loss hedges non. subsidiaries -14
 loss-for-sale securities -1636 -678
 loss hedges -113
 losses-temporary impairment -159
 losses -387
 pension liability -192 -229 -146
 unrealized loss cash flow hedges -18
 $ -2238 -5650 $ -575
 net after-tax unrealized loss-for-sale securities $ 1. 64 billion $. 21 billion december 31 2009 2008 $ 635 million $. 39 billion-tax unrealized losses securities reclassified maturity.
decrease losses 2008 amortization impairment securities.
 note 3.
 2009 net gains $ 368 million.
 unrealized pre-tax gains $ 46 million 2008 deferred taxes $ 18 million.
 gains $ 68 million.
 pre-tax gains $ 71 million 2007 deferred taxes $ 28 million.
 net gains $ 7 million.
 unrealized pre-tax losses $ 32 million 2006 deferred taxes $ 13 million.
 2008.
 issued 20000 shares series b-rate $ 100000 liquidation preference per share warrant purchase 5576208 shares $ 53. 80 per share proceeds $ 2 billion.
 allocated stock warrant values.
 $ 1. 88 billion $ 121 million.
.88 billion preferred stock liquidation $ 2 billion retained earnings yield method.
 2008 2009 reduced net income $ 4 million $ 11 million earnings.
.
 preferred shares 1 regulatory capital paid quarterly dividends 5% year.
 2009 accrual dividends reduced net income $ 18 million $ 46 million reduced earnings.
.
 warrant


entergy louisiana subsidiaries income increased $ 175. million settlement 2010-2011 audit $. million reduction income tax expense.
 lower operation expenses higher net revenue income.
 offset higher depreciation amortization expenses interest nuclear refueling outage expenses.
 2015 income increased $. million higher net revenue lower income tax.
 fuel gas power expenses regulatory charges.
 analysis change net revenue 2016 2015.
.
 2015 net revenue $ 2408.
 retail electric price.
 transmission equalization.
.
 financing savings obligation.
.
 2016 net revenue $ 2438.
 retail electric price variance increase formula rate plan revenues 2016 power blocks 3 4 union power station.
 note 2 financial statements.
transmission equalization variance due investments exit.
 volume/weather variance weather residential sales offset industrial usage volume unbilled period.


corporation subsidiaries consolidated financial statements.
 restructuring integration costs closure excess facilities.
 keystone operations accounted eitf issue.
 95-3 liabilities purchase business. restructuring activities accounted sfas.
 146 exit disposal activities. restructuring established reserves.
 eitf issue.
 95-3 finalize restructuring plans one year acquisition keystone.
 excess reserves reversed decrease goodwill.
 acquisition expenses consolidated balance sheets.
 changes expenses keystone acquisition 2007 severance excess costs facility costs.
 reserves $ 11233 $ 2823 $ $ 14544
 balance december 31 2007 $ 9506 $ 2738 $ 2014 $ 12244
 restructuring integration costs expenses consolidated statements income.
.
sublease office space son pro rata percentage rent.
 total amounts $ 54000 $ 70000 $ 49000 2007 2006 2005.
 paid $ 0. 4 million 2007 consulting fees secured debt facility.
 owns private aircraft trips.
 reimburse flight expenses direct expenses.
 total amounts paid $ 102000 $ 6400 $ 122000 2007 2006 2005.
 acquisitions agreements with sellers lease properties.
 lease terms initial five years three five-year renewal options purchase options.
 right of first refusal sale leased property.
 lease payments to principal stockholder $ 0. 8 million 2007 2006 2005.


equity compensation plan information table presents equity securities as december 31  2017.
 category number securities issued outstanding options warrants rights weighted-average exercise price options warrants securities remaining future issuance excluding securities approved. 4087587 compensation plans not approved.
 category number securities issued warrants rights weighted-average exercise price rights securities remaining future issuance excluding
 plans approved by holders. 4087587
 not approved
.
 includes grants under huntington ingalls industries.
 2012 long-term incentive stock plan approved stockholders 2 2012 huntington ingalls industries.
 approved stockholder northrop grumman.
 27123 stock rights granted under 2011 plan.
includes 28763 stock 3075 restricted 389898 restricted performance rights 2012 plan target performance achievement.
 no awards plans not approved security holders.
 13.
 relationships transactions director independence incorporated 2018 annual meeting 120 days after fiscal year.
 14.
 principal accountant fees services 2018 meeting 120 days.


entergy arkansas.
 cash flow increased $ 8. million 2004 due to income tax benefits increased recovery deferred fuel costs.
 offset by money pool activity.
 2003 domestic utility companies system energy filed tax accounting method.
 simplified allocation overhead electricity.
 $ 1. 171 billion deduction 2003 income tax return.
 no cash benefit.
 2004 realized $ 173 million cash tax benefit.
 challenged irs.
 31 2004 net operating loss $ 766. 9 million change.
 nol carryforward through 2006.
 cash flow increased $ 80. million 2003 due to income taxes $. million. money pool activity.
 offset by decreased recovery deferred fuel costs.
 receivables december 31.
 2004 2003 2002 2001
23561 4279
 $ 92. 7 million entergy arkansas cash flow 2004 $ 73. 4 million 2003 $ 19. 5 million 2002.
 note 4 utility.
 decrease $ 68. 1 million net cash 2004 construction lower support.
 increase $ 88. 1 million 2003 construction expenditures $ 57. 4 million $ 38. 4 million temporary.
 construction expenditures transmission entergy arkansas generator.
 decrease $ 90. 7 million net cash 2004 redemption $ 2. 4 million long-term debt 109. 3 million offset $ 16. 2 million common stock dividends.


jpmorgan chase. annual report results comparative results three-year period december 31 2015.
 business segment.
 accounting estimates pages 165.
 revenue december.
 millions 2015 2014 2013
 investment banking fees $ 6751 $ 6542
 transactions
 lending deposit fees
 asset management administration commissions
 securities gains
 mortgage fees income
 income
 income
 noninterest revenue
 net interest income
 net revenue $ 93543 $ 95112 97367
 operating lease income $. billion $. billion. billion years 2015 2014 2013.
 net revenue down 2% lower corporate private equity gains lower cib revenue simplification mortgage banking revenue.
decreases offset by legal settlement higher operating lease income ccb.
 investment banking fees increased higher advisory fees offset lower equity debt fees.
 completed transactions industry-wide fee levels.
 equity lower issuance debt lower loan syndication bond.
 pages 94.
 principal transactions revenue decreased lower private equity gains valuation net gains sales.
 offset higher client-driven market-making revenue foreign exchange interest rate equity products gain $ 160 million investment square.
.
 94 105.
 asset management administration commissions revenue decreased lower fees performance fees.
 offset higher asset management fees client inflows higher market levels.
 94.
 mortgage fees income decreased lower servicing revenue-party loans lower net production revenue repurchase benefit.
mortgage fees income ccb pages 85 201393 7 17.
 lending deposit fees ccb 85 94 201398 99 securities gains pages 105 106 card income 85 201393.
 other income flat $ 514 million benefit legal settlement higher operating lease income losses non-core portfolios.
 business simplification franchise tax settlement losses amortization cash flow hedges non deposits.
 net interest income flat lower loan yields securities income trading asset balance offset loan balances lower interest expense.
 interest-earning assets $ 2. 1 trillion 2015 net interest yield. 14%. 4.
 revenue 2% lower mortgage fees.
 offset asset management administration commissions.
 investment banking fees increased equity underwriting fees lower debt underwriting fees.


financial statements value.
 no stock options 2015 2014.
 value option $ 4.
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.expected volatility stock options historical volatility common stock implied volatility tradable forward call options.
 estimate average options exercised full vesting date midpoint current. full contractual term.
 factors historical option behavior terms vesting periods.
 risk-free interest rate determined implied yield zero-coupon.
 government issuers term equal.
 expected dividend yield calculated annualized dividend $ 0. 30 per share 2013.
 awards cash performance- based employees.
 depends performance 0% to 300% target.
 awards subject to restrictions vesting requirements determined committee.
 fair value shares grant date amortized over vesting period three years.
 completion vesting period cash-settled awards grantee payment cash based fair market value shares common stock.
 no monetary consideration paid incentive award.
value cash-settled awards adjusted share price.
 holders stock vesting right vote receive dividends.
 dividends accrued vesting paid.
 cash-settled performance-based awards no ownership until issued.


westrock company financial statements 2014.
 stockholders 2019 equity capitalization common stock.
 holders one vote per share.
 certificate incorporation authorizes preferred stock.
 terms determined board directors.
 repurchase 2015 authorized repurchase 40. million shares 15% outstanding stock.
 repurchased indefinite management.
 2019 repurchased 2. 1 million cost $ 88. 6 million.
 2018 repurchased 3. 4 million $ 195. 1 million.
 2017 repurchased 1. 8 million cost $ 93. million.
 september 30 2019 authorization 19. 1 million shares.
.
 compensation annual meeting 2016 approved westrock company 2016 incentive stock plan.
 amended restated 2 2018.
 options restricted stock units employees directors.
table shows number shares issuance future grant restricted awards performance maximum new grants expected adjusted for corporate actions millions.
 future if performance maximum awards amended 2016 incentive stock plan. 2004 incentive stock. 2005 performance incentive plan. rocktenn equity inventive plan. separation equity-based incentive awards adjusted maintain intrinsic value.
 unvested restricted stock awards unexercised stock options increased exchange factor 1.
 exercise price options 1.
 westrock assumed rocktenn mwv equity incentive plans.
 issued awards to employees directors 2004.
 awards converted into westrock awards combination agreement.
 smurfit-stone acquisition assumed equity incentive plan renamed rock-tenn company equity incentive plan.
awards converted into shares rocktenn common stock options restricted stock units merger agreement.
 shares issuance future grant issued if performance achieved maximum new awards
 2016 incentive stock plan 11.
 2004 incentive stock plan.
 2005 performance incentive plan 12.
 rocktenn equity plan 7.
 westrock company financial statements 2014.
 stockholders 2019 equity capitalization common stock.
 one vote per share.
 certificate incorporation authorizes preferred stock.
 determined board directors issuance.
 repurchase authorized repurchase 40. million shares common stock 15% outstanding common stock.
 repurchased indefinite management.
 2019 repurchased 2. million shares cost $ 88. 6 million.
 2018 repurchased 3.4 million shares common stock cost $ 195.
 fiscal 2017 repurchased 1. 8 million shares cost $ 93. million.
 september 30 2019 remaining authorization repurchase program july 2015 purchase 19. 1 million shares.
.
 share-based compensation annual meeting february 2 2016 approved westrock company 2016 incentive stock plan.
 amended restated february 2 2018.
 granting options restricted stock sars units employees directors.
 table number shares issuance future grant performance maximum new grants adjusted corporate actions millions.
 performance maximum 2016 incentive stock plan. 2004. 2005. equity plan. equity-based incentive awards adjusted maintain intrinsic value.
 unvested restricted stock awards unexercised stock options sars separation increased exchange factor 1. 12.
stock options sars 1.
 westrock assumed rocktenn mwv equity incentive plans.
 issued awards employees directors.
 awards converted westrock awards agreement.
 smurfit-stone acquisition assumed equity incentive plan renamed rock-tenn equity incentive plan.
 awards converted into shares rocktenn common stock options restricted stock units merger agreement.


jpmorgan chase. annual report histogram illustrates daily market risk gains losses consumer positions 2009.
 posted gains 227 261 days 69 days $ 160 million.
 graph losses 95% confidence level loss.
 losses 34 days 2009 exceeded measure one day high market volatility first quarter 2009.
 95% confidence interval daily losses twelve times year.
 table sensitivity-basis-point increase jpmorgan chase credit spreads.
 impact shift credit curve.
 not revenue.
 valuation adjustment sensitivity point increase chase credit spread.
 december 31 2009 $ 39
 31 2008 $ 37
 loss advisories drawdowns management trading losses remedies.
 value stress testing risk loss exposure unlikely events abnormal markets.
firm conducts economic value stress tests credit spreads equity prices interest rates currencies.
 risks business segments adverse movements portfolios.
 updated 2009 redefined reflect market volatility 2008.
 stress testing important controlling risk.
 firm risk profile loss potential losses monitored.
 one-off approvals cross-business risk measurement economic capital allocation.
 results trends reported senior management business positions.


jpmorgan chase.
 1 capital $ 136. billion december 31 $ 88. billion 2007 increase $ 47. billion.
 changes 1 capital 31.
 $ 88746
 income 5605
 cumulative perpetual preferred stock. 23750
 warrant. 1250
 noncumulative 7800
 352
 common stock 11485
 plans 3317
 merger 1198
 dividends -6307
 qualifying trust 2619
 structured debt liabilities
 goodwill nonqualifying intangibles tax liabilities -1357
 -879
 increase 1 capital 47358
 capital december 31 2008 $ 136104
 capital ratios federal regulatory capital standards banking subsidiaries note 30 pages 212.
 capital purchase program firm issued.
 treasury proceeds $ 25.billion 2. 5 million shares series k stock warrant pur chase 88401697 shares firm common stock price $ 42. per share subject antidilution adjustments.
 series k stock 1 capital.
 bears dividends 5% per year first five years 9 % per year thereafter.
 ranks equally firm 6. 15%. 15 % stock. 72%. 72 %. 49%. 49 % g--floating. 63%. 63 % ) j.
 accrued unpaid dividends k stock paid before.
 until october 28 2011.
 consent required increase dividends common stock last quarterly stock 14 2008 unless stock redeemed.
 transferred third parties.
 firm not repurchase redeem common stock equity securities without prior consent.
treasury repurchases series k stock junior shares common stock employee benefit plan.
 basel minimum risk capital requirements.
 federal banking agencies capital accord basel committee banking supervision.
 2004 revision.
 risk-sensitive regulatory capital calculations enhanced risk management banking organizations.
.
 regulators final basel rule 2007 jpmorgan chase implement ii holding company level key.
 subsidiaries.
 qualification period four quarters requirements rule.
 regulators.
.
 implementation timetable qualification period april 2008 2010 transition three years.
 basel ii capital requirements below floors.
 jpmorgan chase basel ii rules.
 adopted basel ii non.
 jurisdictions.
 broker-dealer regulatory capital principal.
 broker-dealer subsidiaries.
 morgan securities.
securities.
 morgan.
 bear stearns securities.
.
.
 subject rule 15c3-1 securities exchange act 1934 rule.
.
.
 futures commission merchants rule. 17 commodity futures trading commission.
.
.
 minimum net capital requirements capital requirement 201d.
 31 2008 jpmorgan securities 2019 net capital $ 7. billion exceeded minimum $. billion.
 net capital excess.
 annual


mission achieve sustainable revenue earnings growth superior solutions.
 pillars expand client relationships market single-product multi-solution partnerships.
 market dynamics clients rely multidimensional service offerings.
 leveraged solutions expertise value cost savings efficient processes improved service quality speed.
 solutions cross-sell invest growth product development acquisitions.
 partner comprehensive offerings.
 solution innovation integration expand value proposition.
 support market transformation market dynamics demand leveraged solutions consulting expertise services intellectual property.
 planning design process.
 margin expansion optimize performance investments infrastructure enhancements revenue growth margin expansion.
 build global diversification deploy resources emerging markets.
 revenues segment revenues segments millions.
 2011 2010
 2246. 2076. 1890.
 2380. 2372. 2354.
 1180. 1177.917.
 corporate 0. 1. 9. 4.
 consolidated revenues $ 5807. $ 5625. $ 5145.
 financial solutions comprehensive software services core processing customer channel treasury services cash management wealth management capital market operations financial north america.
 service banks credit unions automotive financial companies commercial lenders community savings institutions.
 in-house outsourced solutions banking.
 multi-year contracts stable recurring revenue cross-selling offerings.
 employ business models.
 software applications outsourcing.
 software licensing.
 clients retain operations proprietary software.
 solutions


7a.
 disclosures market risk millions exposed to market risks interest rates foreign currency balance sheet items.
 use derivative instruments manage risks.
 derivative instruments risk management tools not trading speculative.
 exposure market risk fair market value cash flows debt obligations.
 majority debt 93% 89% 89 % ) december 31 2016 2015 bears interest fixed rates.
 debt variable interest rates 10% increase decrease not material interest expense cash flows.
 fair market value debt sensitive changes interest rates impact 10% change interest summarized.
.
.
.
 used interest rate swaps risk management exposure.
 interest rate swaps outstanding december 31  2016.
 $ 1100. 6 cash equivalents marketable securities 31 conservative short-term bank deposits securities.
interest income investments subject to domestic foreign interest rate movements.
 2016 2015 income $ 20. 1 $ 22. 8 .
 100 basis-point increase interest rates income $ 11. cash equivalents securities impacted balances constant.
 subject to translation transaction risks.
.
 changes exchange rates affect revenues expenses.
.
 currencies british pound sterling argentine peso brazilian real japanese yen.
.
 dollar 10% operating income 4% ( 4 % all currencies international revenue expenses constant 2016.
 currency operations local currency.
 assets liabilities translated at exchange rates expenses average exchange rates.
 translation adjustments recorded loss.
 foreign subsidiaries collect revenues pay expenses in functional currency.
 subsidiaries other.
 liabilities susceptible to movements until final.
currency transaction gains losses included in office general expenses.
 review foreign exchange exposures use currency exchange contracts hedge fluctuations rates.
 enter contracts for speculative purposes.


gulf states.
 financial discussion analysis.
 2003 net revenue $ 1110.
.
 wholesale revenue.
 summer capacity charges.
 unbilled sales.
 fuel recovery revenues.
.
 2004 net revenue $ 1149.
/weather 1179 gwh electricity usage industrial.
 291 gwh residential commercial governmental sectors.
 wholesale revenue sales volume municipal co-op.
 capacity charges amortization deferred capacity charges.
 2002 2003.
 sales variance fuel price.
 recovery revenues under-recovery charges.
 $ 22. million provisions 2004 rate refunds.
.
 $ 187. million fuel cost recovery revenues higher fuel rates louisiana texas jurisdictions.
 increases volume/weather wholesale revenue.
fuel power expenses recovery deferred fuel costs prices natural gas coal power electricity usage.
 regulatory credits amortization 2003 deferred capacity charges 2001 2004.
 began june 2002 ended may 2003.
 net revenue revenues fuel power expenses regulatory credits.
 analysis net revenue 2003 2002.


aes corporation financial statements 2014 december 31 2017 2016 2015 dispatched february 2018.
 aes puerto rico lowest cost epa compliant energy provider puerto rico.
 critical supplier prepa.
 prepa facing economic challenges july 2 2017 filed bankruptcy.
 aes puerto rico ilumina non-recourse debt $ 365 million $ 36 million default current december 31  2017.
 november 2017 aes signed forbearance standstill agreement lenders action.
 march 22 2018.
 receivable balances rico december 31 2017 $ 86 million $ 53 million overdue.
 collecting overdue prepa.
 $ 627 million recoverable 2017 no reserve receivables.
 foreign currency risks operates foreign countries impacted currency exchange rates.
.
 earnings.
geographical diversity company significant concentration customers fuel supply.
 businesses rely on ppas output.
 no single customer 10% revenue in 2017 2016 2015.
 cash flows results depend on credit quality obligations ppas fuel supply agreements.
 ppas fuel supply modified terminated replace contracts terms.
.
 businesses panama dominican republic partially owned by governments.
 energy purchase sale transmission agreements institutions.
 two mexico offtakers influence boards.
 offtakers nominal ownership.
 provide capacity energy arrangements equity accounting.
 company provides support management services affiliates.
 consolidated statements operations transactions with related parties.
 years december 31, 2017 2016 2015
 revenue 2014non $ 1297 $ 1100 $ 1099
 cost sales 220 210 330
income 8
 expense 36 39


23 2013 filed shelf registration statement debt securities.
 issued $ 1. billion senior notes maturing 2023 2043.
 $ 500 million. 25%. annual interest rate may 2023.
 2043 $ 500 million. interest.
 payable semi-annually may 1 november 1.
 proceeds $ 998 million.
 2015 issued additional $ 1. billion notes 3. 875%. interest rate november 1 2045.
 payable may.
 proceeds expenses $ 991 million.
 shelf expired april 23 2016.
 new shelf registration statement july 2016.
 credit facility agreement banks $ 2 billion borrowings.
 matures august 28 2020 one year extension august 28 2022.
 replaces $ 1 billion agreement 2011 matured 1 2017.
 no amounts outstanding.
long-term debt ratings aa- a1 from standard moody 2019s investor services.
 if decline facility fee interest rate increase.
 fee interest rate.
 changes trigger maturity future.
 agreed covenants.
 include limits disposal fixed assets debt secured liens limits indebtedness.
 waiver immediately due payable.
 may 31 full compliance with covenants unlikely fail.
 liquidity by $ 2 billion commercial paper program increased $ 1 billion quarter 2016.
 no outstanding borrowings.
 future issuance corporate needs.
 short-term debt ratings a1+ p1 from standard moody 2019s services.
 may 31 2016 cash equivalents short-term investments totaling $ 5. 5 billion $ 4. 6 billion held by foreign subsidiaries.
cash equivalents may 31 2016 $ 105 million collateral hedging activity.
 equivalents investments deposits banks money market funds commercial paper corporate notes.
 treasury obligations.
 government obligations investment grade fixed income securities.
 exposed credit interest rate risk.
 investment credit risk.
 durations average duration 91 days.
 difficulty accessing credit markets higher interest costs.
 future volatility increase costs commercial paper debt instruments affect.
 cash equivalents short-term investments external sources funds domestic foreign capital needs.
 tax planning financing strategies cash deploy funds.
 repatriate foreign earnings.
.
 indefinitely reinvest plans need.
 additional capital repatriate reinvested foreign funds raise capital debt.
 additional.
 taxes credits.
 additional interest expense.
-balance sheet arrangements contracts agreements provide indemnification intellectual property rights legal issues guarantor.
 agreements.
 value indemnification not material financial position results operations.
 long-term obligations may 31 2016 endorsement contracts marketing commitments.
 commitment millions 2017 2018 2019 2020 2021
 operating leases $ 491  $ 453 $ 395 $ 347 $ 1244 $ 3231
 capital leases
 long-term debt 75 74 3365
 endorsement contracts 1198 1238 945 827 698
 product purchase obligations
 purchase obligations 384
 $ 6344 $ 1889 $ 1506 $ 1297 $ 1112 9213 21361
 cash payments long-term debt include estimated interest payments.
estimates interest payments principal may 31 2016 timing payments term debt obligations.


2013 ppg annual report form 10-k notes consolidated financial statements.
 accounting policies principles consolidation financial statements include accounts ppg industries.
 subsidiaries.
.
 ppg owns 50% voting stock subsidiaries.
 subsidiaries ownership less 100% outside shareholders noncontrolling interests.
 investments ppg owns 20% to 50% 50 voting stock operating financial policies equity method accounting.
 ppg share earnings losses equity affiliates statement income equity "investments balance sheet.
 transactions ppg subsidiaries eliminated.
 estimates financial statements.
 estimates assumptions assets liabilities income expenses.
 include fair value assets acquired liabilities assumed purchase.
 outcomes differ.
 revenue recognition earnings process complete.
revenue from sales recognized segments goods shipped risk loss customer services rendered.
 shipping handling costs reported in sales.
 shipping handling costs included in depreciation amortization.
 selling administrative costs selling service distribution advertising costs support finance law human resources planning.
 distribution costs storage finished goods owned leased warehouses terminals distribution facilities.
 advertising costs expensed $ 345 million $ 288 million $ 245 million in 2013 2012 2011.
 research development employee related incurred.
 31.
 $ 505  $ 468  $ 443
 depreciation facilities
 $ 488 $ 453 $ 428
 legal costs expensed as incurred.
 acquisition divestiture litigation environmental regulation compliance patent trademark protection purposes.
.
 local.
assets liabilities translated.
 dollars year-end exchange rates income expenses translated average exchange rates.
 unrealized foreign currency adjustments deferred loss 2019 equity.
 cash equivalents liquid valued cost maturity three months less.
 short-term investments high credit maturities three months one year.
 purchases sales investing activities cash.
 marketable equity securities investment recorded fair market value reported assets balance sheet changes fair market value.


properties october 28.
.
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.
.
 plant warehouse headquarters 1512000 150000 leased.
.
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.
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.
.
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.
.
.
 1719000 145000.
.
.
.
.
.
.
.
.
.
.
 417000.
.
.
.
.
.
.
.
 281000.
.
.
.
.
.
.
.
.
.
.
.
 252000.
.
.
.
.
 165000.
.
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.
 392000.
.
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.
.
.
.
.
.
.
 135000.
.
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.
.
.
.
.
.
 plant warehouse manufacturing support 320000.
.
.
.
.
.
.
.
.
.
.
.
.
 plant warehouse development engineering 567000.
.
.
.
.
.
.
.
.
.
 warehouse 93000.
 ownership
 clara office plant warehouse headquarters marketing manufacturing distribution research support 1512000150000
 austin 1719000145000
 rehovot israel 4170005000
 alzenau germany 281000
 kalispell 252000
 cheseaux switzerland
 treviso italy
 singapore 3920005000
 gloucester researchdevelopment 319000135000
 tainan taiwan plant warehouse manufacturing 320000
office plant warehouse research development 567000
 hsinchu taiwan 930006000
 shanghai 105000
 properties shared segments.
 silicon systems manufactured austin texas gloucester massachusetts rehovot israel singapore.
 global services austin texas.
 display santa clara california alzenau germany tainan taiwan.
 energy environmental solutions alzenau germany cheseaux switzerland treviso italy.
 leases office space marketing sales engineering support 79 locations 17 23 japan 16 north america 7 china 6 southeast asia 3 taiwan.
 owns 112 acres texas 1708000. california. massachusetts israel 111000.
 leases 4 acres italy 180000 square feet.
 properties adequate current future requirements.
assesses size capability global infrastructure adjustments.


financial statements 2013 millions share guaranteed obligations subsidiaries operating leases uncommitted lines credit.
 company guarantees lease obligations $ 829. 2 $ 857. 3 december 31 2017 2016 uncommitted lines credit $ 491. 0 $ 395. 6.
 non-payment obligated pay amounts.
 no material assets pledged guarantees.
 estimated future obligations payable cash december 31.
 2021 2022
 deferred acquisition payments $ 41. 9 $ 27. 5. 24 $ 121.
 redeemable noncontrolling interests call options.
 contingent acquisition payments $ 79. $. 34 268.
 entered acquisitions redeemable noncontrolling interests call options similar terms conditions.
 estimated amounts paid earliest date.
redeemable noncontrolling interests exercisable at discretion owners as of december 31 2017.
 estimated payments of $ 24. 8 included within total payments 2018 into 2019 until exercised or expired.
 at current exercise price payable cash not redemption value.
 majority payments contingent upon operating performance targets conditions agreements subject to revision.
 see note 4 for information payment structure acquisitions.
 involved in legal proceedings subject to investigations inspections audits inquiries governmental authorities.
 allegations contract employment tax intellectual property.
 evaluate cases record liabilities for losses from proceedings.
 certain cases loss litigation early stages.
 management believes financial condition operations cash flows.
april 10 2015 federal judge brazil authorized search agency offices e3o paulo brasilia investigation payments government contracts.
 company investigated remedial disciplinary actions.
 concluding settlement government.
 contacted justice antitrust video production practices cooperating.


consolidated financial statements.
 pension postretirement health care life insurance table benefits ten years pension postretirement plans december 31 2004.
 2005 $ 125
 2006
 2007
 2008 154
 2009 166
 2010-2014
 $ 1772 $ 352
.
 stock compensation plans may 2000 shareholders hartford approved incentive stock plan replaced 1995 stock plan.
 similar 1995 annual higher maximum limit.
 awards non-qualified incentive stock options performance shares restricted stock.
 stock appreciation rights stock options 2000.
 2004 amended grants restricted stock units january 1 2005.
 maximum limit 17211837 shares ten-year duration.
 options exercise price equal market price common stock maximum term ten years two.
options exercisable three year period grant market price appreciation common shares.
 no employee more 1000000 shares.
 2004 hartford incentive stock options 2000 plan.
 performance awards payable performance goals five years restricted stock subject to restriction.
 no more 20% shares.
 maximum award 200000 shares.
 2004 2003 2002 granted 315452 333712 40852 average prices $ 64. $ 38. $ 62.
 1996 hartford employee stock purchase plan.
 employees purchase common stock at 15% discount closing market price.
 sell 5400000 shares employees.
 2004 2003 2002 345262 443467 408304 shares sold.
 per share average fair value $ 9. 31 $ 11. $ 11. 70.
 1997 established employee stock purchase plans for international.
participants purchase stock hartford fixed price three-year.
 activity material.


.
 assets business.
 network covers 23 states western.
 includes 31838 route miles.
 own 26009 miles operate remainder trackage rights leases.
 table describes miles 31 2013 2012.
.
 31838
 6766 switching
 50861 omaha nebraska.
. million square feet space 4000 employees financing.
 harriman dispatching center primary dispatching facility.
 linked regional dispatching locomotive management facilities


7a.
 disclosures market risk millions exposed to market risks interest rates foreign currency balance sheet items.
 use derivative instruments manage risks.
 derivative instruments risk management tools not trading speculative.
 exposure risk relates fair market value cash flows debt obligations.
 majority debt 91% 86% 86 % december 31 2014 2013 bears interest fixed rates.
 debt variable interest rates 10% increase decrease not material interest expense cash flows.
 fair market value debt sensitive changes interest rates impact 10% change interest summarized.
.
. 36.
.
 used interest rate swaps risk management exposure.
 interest rate swaps outstanding december 31  2014.
 $ 1667. 2 cash equivalents marketable securities conservative short-term bank deposits securities.
interest income investments subject to domestic foreign interest rate movements.
 2014 2013 income $ 27. 4 $ 24. 7.
 100-basis-point increase interest rates income $ 16. cash equivalents securities impacted balances constant.
 subject translation transaction risks.
.
 changes exchange rates affect revenues expenses.
.
 primary currencies argentine peso australian dollar brazilian real british pound.
.
 dollar 10% operating income 4% 4 % currencies international revenue expenses constant 2014.
 operations local currency.
 assets liabilities translated at exchange rates revenues expenses average exchange rates.
 translation adjustments recorded loss.
 foreign subsidiaries collect revenues pay expenses in currency.
 subsidiaries currencies other.
 liabilities susceptible to until final settlement.
currency transaction gains losses included in office expenses.
 not entered foreign currency exchange contracts instruments hedge.


american tower corporation subsidiaries financial statements 2014. convertible notes 2008 2007 issued 8. 9 million 973 shares common stock conversion $ 182. 8 million $ 0. 02 million 3. notes.
 holders. receive 48. 7805 shares common stock $ 1000 converted.
 paid $ 4. 7 million  future interest payments reflected loss retirement long-term obligations.
.
 impairments net loss sale long-lived assets restructuring merger related expense net loss sale assets 2007 2006 recorded net loss $ 11. 2 million $ 9. 2 million $ 2. 6 million .
 recorded net losses sales non-core towers assets impairment charges write-down assets impairment.
 net losses impairments $ 10. 5 million  $ 7.million 2. million years 2008 2007 2006.
 net loss 2008 losses sales $ 10. 7 million offset gains asset sales $ 0. 2 million.
 net loss 2007 net losses $ 7. 8 million gains sales $ 0. 7 million.
 merger expense 2005 company assumed obligations merger spectrasite. employee separation costs.
 severance payments.
.
.
 assumed liability purchase price allocation.
 incurred merger costs employee retention separation costs 2006.
 table activity liability 2008 2007 2006.
.
.
.
 $ 20963 $ 496 $ ( 12389 1743 7327 $ 633 $ 6110 1546 284 $ 1901 paid merger liabilities.
employee separations liability december 31 2005 $ 20963 2006 expense $ 496 cash payments -12389 $ -1743 liability 2006 $ 7327 2007 expense $ 633 cash payments $ -6110 $ -304 liability 2007 $ 1546 2008 expense $ 284 cash payments $ -1901 $ 71 liability 31
 american tower corporation subsidiaries financial statements. convertible notes 2008 2007 issued 8. 9 million 973 shares common stock conversion $ 182. 8 million $. million.
 holders. shares common stock $ 1000 converted.
 paid $ 4. 7 million future interest payments loss retirement long-term obligations statement.
.
impairments net loss sale restructuring merger expense impairments net loss sale assets 2007 2006 recorded impairments net loss rental $ 11. 2 million $ 9. 2 million $ 2. 6 million.
 recorded net losses sales non-core towers assets impairment charges write-down assets.
 recorded net losses impairments $ 10. 5 million $ 7. 1 million $ 2. million 2007 2006.
 net loss 2008 losses $ 10. 7 million offset gains asset sales $ 0. 2 million.
 2007 losses $ 7. 8 million offset gains sales $ 0. 7 million.
 merger expense company assumed obligations merger spectrasite. employee separation costs.
 severance payments.
 agreements.
.
costs recognized assumed liability purchase price allocation.
 company incurred merger costs employee retention separation 2006.
 table displays activity liability years 2008 2007 2006 separations.
.
.
.
 20963 496 $ 12389 1743 7327 $ $ 6110 1546 $ 284 $ 1901 2008 company paid merger liabilities.


17.
 losses pmi's net taxes.
 earnings millions 2015 2014
 currency translation adjustments $ -6129 ( $ -3929 -2207 (
 pension benefits -3332 ( 3332 -3020 (
 derivatives hedges
 losses $ -9402 ( $ -6826 ( $ -4190 (
 reclassifications tax impact consolidated statements 2015 2014 2013.
 currency translation adjustments impacted purchase shares mexican tobacco business.
 $ 1 million $ 5 million $ 12 million net currency translation adjustment gains transferred marketing administration research costs liquidation subsidiaries.
 note 13.
 benefit plans 15.
 instruments pmi's pension.
 18.
colombian investment cooperation agreement june 19 2009 pmi signed agreement colombia departments capital district promote investment cooperation tobacco market fight counterfeit.
 provides $ 200 million funding colombian 20-year combating illegal cigarette trade counterfeit tobacco increasing quality locally grown tobacco.
 pmi recorded pre-tax charge $ 135 million latin america canada second quarter 2009.
 december 31 2015 2014 $ 73 million $ 71 million discounted liabilities.
 paid through 2028.
.
 legal settlement july 31 2008 rothmans.
 cad 550 million settlement benson hedges.
.
 resolved investigation products exported canada 1989-1996.
 rothmans interest rbh.
 remaining 40% pmi.


.
 consolidated financial statements company implex operating since 2000 table summarizes estimated values reconstructive assets acquired liabilities assumed implant trauma products implex acquisition.
 merger agreement cash earn-out payments assets $ 23. sales growth 2006 products.
 current assets $ 23.
 property plant equipment.
 intangible assets amortization
 core technology 30 year.
.
 other assets.
 goodwill 61.
 assets acquired 210.
 current liabilities.
 deferred taxes 43.
 liabilities assumed 57.
 net assets acquired $ 153.
 total earn-out payments. $ 120 to $ 160 million.
. payments contingent consideration goodwill.
 assets acquired. shareholders current liabilities. deferred taxes. additional cost transaction resolution contingency liabilities.
 net assets acquired $ 153.implex acquisition accounted purchase method.
.
.
 implex results operations included company consolidated results devices orthopaedic april 2004 assets joint replacement surgical liabilities recorded estimated values.
 january 1 2003 instruments financial position long-lived assets property excess purchase price plant equipment.
 undeployed instruments goodwill.
 financial information allowances obsolescence.
 instruments cost less accumulated depreciation.
 financial position depreciation computed straight-line method.
 estimated lives preliminary purchase price product life cycles allocation.
 five years.
.
 accounting principles.
 interviews instruments impairment economic competitive events historical value.
.
 preliminary purchase recognized future cash flows allocation information less carrying amount.
 depreciation instruments recognized selling.
assurance administrative expense assumptions instrument cost 2003.
 technology revenues undeployed instruments development costs profitability prepaid expense.
 final obsolescence $ 54. 8 million december 31 2002 purchase price allocation vary administrative expense.
 final valuation instruments service.
 purchase price allocation new method accounting no later one year cost assets acquisition.
 estimates.
 allocate cost five years.
 change december 31 2003 earnings $ 26. million $ 17. million net tax $ 0. per diluted share.
 cumulative adjustment $ 55. 1 million net income taxes $ 34. million


mutual pooled funds shares valued at net asset value nav exchange level 1 assets.
 units valued per unit nav fund manager level 2 assets.
 nav fair.
 corporate government bonds level 2 assets valued market prices or comparable securities.
 mortgage asset-backed securities level 2.
 real estate pooled funds level 3 assets estimated fair value underlying properties.
 calculated revenue expense growth rates capitalization discount rates.
.
 pooled funds level 2 valued at nav shares year end based on fair value underlying investments.
 securities interests level 3 estimated fair value underlying investments.
 valued based bids brokers default risk capital.
 insurance contracts level 3 assets carried contract value estimated fair value.
estimated value based investment insurance company.
 projected 2015 $ 137.
 contributions long-term funding tax planning.
 benefit payments due timing retirements cost reduction actions.
 anticipate contributing $ 100 to $ 120 benefit pension plans 2016.
 contributions driven unfunded plans dependent timing retirements business.
 projected benefit payments future service.
.
 129. 52.
 135.
.
.
.
.
 estimated benefit payments based future events.
 vary.


obligations december 29 2018.
 millions payments due less years
 operating lease obligations $ 835 $ 229  $ 314  $ 171  $ 121
 capital purchase 9029 7888 795  345
 3249  1272 1781 178 18
 tax 4732  143  426  1234 2929
 long-term debt 40187 1518 7583 6173 24913
 1626  722  708
 $ 59658 $ 11772 $ 11607 $ 8196 $ 28083
 7888 debt-term obligations construction purchase property plant equipment.
 not recorded liabilities balance sheets december 29 2018 goods title.
 obligations licenses agreements non-contingent funding obligations.
tax obligations future cash payments tax reform 2017-time transition tax foreign earnings.
 income taxes financial statements.
 amounts principal payments debt obligations interest payments fixed-rate debt.
 interest payments floating-rate debt obligations impact swaps excluded.
 debt obligations classified maturity date.
 future settlement convertible debt cash payments.
 amounts future cash payments long-term liabilities short-term.
 derivative instruments excluded represent amounts.
 6 excludes contractual obligations short-term long-term.
 expected timing payments estimated current information.
 receipt changes.
 purchases agreements enforceable legally binding terms quantities price provisions approximate timing transaction.
 obligations cancellation provisions amounts limited non-cancelable minimum cancellation fee.
purchase raw materials entered agreements minimum prices quantities based market future purchasing requirements.
 uncertainty future market purchasing requirements non-binding obligations excluded table.
 purchase orders based manufacturing needs fulfilled short.
 purchase orders represent authorizations purchase binding agreements.
 contractual obligations achievement milestones excluded.
 milestone-based contracts purchase capital equipment.
 not obligations until milestone met.
 additional payments approximately $ 688 million.
 majority restricted stock units shares common stock net minimum withholding requirements taxing.
 obligation pay excluded contingent employment.
 amount obligation unknown based on market price common stock.


extend reach groups 158 lauren factory stores worldwide.
 2008 added 13 stores.
 outlet malls.
 operated stores march 29 2008.
 united states canada 132
 22
 japan 4
 stores menswear womenswear accessories home furnishings fragrances.
 2000 to 33000 square feet average 8600 feet major centers 36 states puerto rico.
 2022 stores.
 2400 to 13200 square feet average 6700 square feet 7 countries centers.
 obtain products retail stores licensing partners suppliers.
. sells online e-commercewebsite.
. apparel accessories home products luxury image.
. 6 million visitors month acquired 290000 new customers. 3 million customers 2008.
.owned operated by ralph lauren media.
 acquired 50% equity interest rlmedia bynbc-laurenmedia holdings. subsidiary owned national broadcasting company.
. value vision media.
. minority interest acquisition late fiscal 2007.
 combine consumer insight design marketing skills product competencies partners businesses.
 seek partners leaders markets contribute product development costs provide operational infrastructure own inventory.
 grant licensees right manufacture sell wholesale trademarks.
 grant international licensing partners rights distribute brands operate retail stores international territories.
 products.
 pays royalties sales minimum royalty requirement trademarks.
 revenues advertise products share creative costs


value psu award amortized over performance period three years after death disability 58.
 pmi $ 34 million unrecognized compensation cost non-vested psu awards.
 cost recognized over two years death disability 58.
 2017 2016 no psu awards.
.
 unvested share awards non rights dividends participating securities included in pmi earnings per share calculation.
 basic diluted earnings per share calculated.
 net earnings pmi $ 6035 $ 6967 $ 6873
 earnings share-based awards
 earnings basic diluted $ 6021 $ 6948 $ 6849
-average shares
 issuable performance stock units
 2015 no antidilutive stock options.


tower corporation subsidiaries financial statements table summarizes preliminary allocation purchase consideration assets acquired liabilities assumed estimated value date acquisition purchase price allocation.
 non-current assets $ 24460
 property equipment 138959
 intangible assets 117990
 non-current liabilities
 net assets acquired $ 263214
 goodwill
 customer-related intangibles $ 80. million network location intangibles $ 38. million.
 amortized 20 years.
 goodwill deductible tax.
 allocated international rental management segment.
 2010 agreement mtn group joint venture.
 controlled subsidiary holds 51% 51 % interest. 49% 49 % interest.
 owns tower operations company.
may 6 august 11 december 23 joint venture acquired 400 770 686 communications sites mtn group ghana price $ 515. 6 million contingent consideration $ 2. 3 million value added tax $ 65. 6 million.
 increased $ 517. 7 million. tax. post-closing adjustments.
 legal title sites transferred mtn group.
 company allocation purchase price consolidated operating results.
 december 2011 amendment agreement additional payments conversion barter cash-paying.
 estimates payments zero $ 1. million $ 0. 9 million december 31 2012.
 made payments $ 2. 6 million.
 31 2012 increase fair value $ 0. 4 million statements.


financial statements american airlines.
 market transactions pricing guides.
 current market maintenance condition expected proceeds sale.
 market approach intangible assets airport take off landing slots.
 income approach intangible assets customer relationships marketing agreements international route authorities us airways tradename.
 income approach indicates value cash flows.
 discounted market rate return risk time value.
 cost approach cost replacing asset assets.
 cost replace reflects estimated cost loss depreciation.
 fair value us airways 2019 dividend miles loyalty program liability weighted average ticket value outstanding miles future travel 9.
 classes service domestic international itineraries carrier award travel.
 impact merger results effects merger january 1 2012.
pro-forma results include depreciation amortization acquired assets lease debt value adjustments elimination deferred gains losses loyalty program liability impact income changes profit sharing expense.
 reflect higher wage rates memorandums airways pilots reorganization items merger transition costs.
 include anticipated synergies benefits merger.
 unaudited financial information not indicative future results acquisition january 1 2012.
 december 31.
 revenue $ 40678
 net income 2526
.
 consolidated financial statements 2015 2014 include accounts company subsidiaries.
 us airways group.
 significant intercompany transactions eliminated.
 financial statements principles requires estimates assumptions assets liabilities revenues expenses contingent assets liabilities.
 actual results could differ estimates.


shareholder return performance graph compares annual return stock dow jones containers packaging index s&p composite 500 stock index five-year period december 31 2011.
 $ 100 invested 2006 dividends reinvested.
 dow jones containers packaging index return weighted market capitalization.
 $ 100 investment 12/31/06.
 12/31/2006/31/2007/31/2008/31/2009/31/2010/31/2011
 100. 104. 97. 121. 161. 170.
 containers packaging. 106. 66.
 500. 105.
 division mcgraw-hill companies.
.
. researchdatagroup.
.


.
 2 0 1 1 table future obligations in a0millions operating leases cash purchase commitments at december 31  2011.
 commitments include amounts goods services cancelable termination fees.
 fund from future cash flows.
 include operating expenses capital expenditures 2012 future years.
 excludes $ 4. 7 a0million uncertain tax positions note 9.
 2012 2013-14 2015-16
 noncancelable operating leases $ 185  $ 31  $ 63  $ 57  $ 34
 other purchase commitments 160  112
 $ 345  $ 143  $ 101 $ 67
 outstanding commitments fund additional contributions investment partnerships existing investment $ 42. 5 at december 31  2011.
 financial statements accounting methods policies.
estimates judgments selecting applying methods policies assets liabilities balance sheet revenues expenses statement income accounting policies notes consolidated financial statements.
 analysis events facts circumstances.
 actual future results differ from estimates consolidated financial statements accounting policies notes.
 present accounting policies 2011 annual report.
 policies critical preparation financial statements.
 temporary impairments available-for-sale securities.
 classify investment holdings sponsored mutual funds debt securities available-for-sale.
 mark carrying amount fair value recognize unrealized gain loss income statement stockholders equity.
 review each security position unrealized loss.
 factors duration severity impairment changes value intent ability hold security recovery value.
 mutual fund holding unrealized loss persisted daily six months between quarter-ends temporary impairment.
recognize temporary loss less than six months in statement income if circumstances investment warrant near-term recovery.
 impaired debt security savings bank subsidiary temporary loss if credit quality amortized cost or sell security before recovering cost.
 minor impairments 5% or less temporary.
 equity method investments.
 evaluate investments including uti for impairment when carrying value exceeds fair value decline temporary.
.
 report operations investment advisory business.
.
 attribute goodwill single reportable business segment.
 evaluate carrying amount goodwill for impairment fair value.
 goodwill impaired carrying amount exceeds fair value business.
 fair value exceeds carrying amount no impairment exists.
 additional work ascertain non-cash impairment charge.
 perform impairment testing if impairment incurred.
maximum future impairment goodwill recognized in balance sheet $ 665. 7.
 stock options.
 recognize stock option-based compensation expense in consolidated statement income fair value method.
 shorter-term market-traded stock option grants.
 option-pricing model includes variables future expectations expected lives options grant to exercise volatility common shares rate dividends.
 estimates not adjusted.
 resulting charge to earnings non-cash charge measured cash.
 provision for income taxes.
 largest annual expense.
 operate in numerous states countries allocate income expenses earnings under laws regulations.
 total estimate liability.
 file tax returns each jurisdiction settle return liabilities.
 jurisdiction returns income expense allocations earnings determinations.
 provide for estimated liabilities uncertain tax return filing positions.
determination annual provision subject to judgments estimates likely results vary financial statements.
 recognize additions reductions income tax expense reporting period prior period provisions liabilities revised tax returns audits settled.
 recognize prior period adjustment quarterly period.
 2011 fasb issued amended guidance fair value.
 believe adoption guidance january 1  2012 effect consolidated financial statements.
 considered other issued accounting guidance.
 believe guidance effect financial position results.


performance graph five returns teleflex common stock 500 stock index healthcare equipment supply index.
 $ 100 invested teleflex 2012 dividends reinvested.
 performance.
 2012 2013 2014 2015 2016 2017
 teleflex 134 166 192  237  368
&p 500 index 132 151 153  171
 s&p 500 healthcare equipment supply index 161 171 181


company amortize $ 1. 7 million actuarial loss benefit costs 2011.
 benefit payments future.
 2011.
 2012.
 2013.
 2014.
 2015.
 2016-2020.
.
 maintains defined contribution savings plan 401.
 employees contribute.
 matches contributions 3% base salary additional contributions 2% base salary.
 london-based employees eligible participate plan.
 contributions 10% earnings vesting requirements.
 salary bonuses.
 expense defined contribution savings plans $ 6. 3 million $ 5. 2 million $. 8 million 2010 2009 2008.
.
 investment choices.
 invests contributions assets.
 balances subject creditors totaled $ 28. 8 million $ 23. 4 million december 31 2010 2009.
 equal offsetting liability.
investment results income equal compensation.
 supplemental savings plan employees impacted statutory limits.
 employees prior 2007 vested in plan.
 after 2007 subject vesting requirements.
 total expense plan $ 0. 9 million $. 7 million $ 1. 3 million 2010 2009 2008.
 deferred compensation plan maintained cme officers board directors contribute compensation defer income taxes until distribution.
 nymexmembers 2019 retirement plan benefits.
 retirement plan.
.
 benefits long-term membership limited prior acquisition.
 no new participants after.
 fund plan minimum annual contribution $. 4 million until fully funded.
 benefits based on actuarial assumptions.
 total contributions $. 8 million 2010 2009 2008.
 total obligation $ 20. 7 million $. 5 million


consolidated financial statements union pacific corporation subsidiary companies references subsidiaries railroad company 201cuprr 201crailroad 201d.
.
 class i united states.
 32012 route miles linking pacific gulf coast ports midwest eastern states gateways mexican gateways.
 serve western thirds country coordinated schedules rail carriers freight pacific coast southeast southwest canada mexico.
 export import traffic gulf coast pacific coast ports mexican canadian borders.
 railroad subsidiaries affiliates reportable operating segment.
 commodity group net financial results segment.
 revenue commodity group 2008 2007 2006.
 agricultural 3174 2605
 automotive
 chemicals
 energy
 industrial products
 intermodal
freight revenues $ 17118 $ 15486 14791
 other revenues 852 797 787
 operating revenues $ 17970 $ 16283 15578
 amounts reclassified.
 freight commodity.
 $ 30 million $ 71 million 2007 2006.
 modified operating expense categories fuel purchased services materials expenses.
 impact revenues expenses income income.
 consolidated financial statements union pacific corporation subsidiaries.
 investments companies 50% equity.
 intercompany transactions eliminated.
 less majority-owned investments consolidation


.
 current assets december 31:.
 millions 2010
 refundable income tax $ 61. $ 24.
 deferred income taxes 18. 23.
 prepaid technology license maintenance contracts 18. 17.
 contract receivable 11. 27.
 receivables brokers. 8
 prepaid expenses 9. 13.
 prepaid insurance 6. 7.
 cboe rights privilege 2014 39.
 9. 4
 $ 146. $ 165.
.
 performance bonds guaranty fund contributions guarantees settlement cme cbot contracts.
 claims.
 single portfolio.
 credit risk.
 reduces exposure risk management program financial standards guaranty fund contributions.
 deposit maintain balances cash.
 government securities bank letters credit investments performance bond guaranty fund requirements.
obligations non-cash deposits marked market daily.
 rules cbot require minimum financial requirements commodities capital deposits arbitration matters.
 cbot clearing firms cash.
 treasury securities letters credit.
-market positions twice requires lost.
 positions marked-to once daily frequently.
 default maximum exposure guarantee one half day changes fair value defaulting performance bond guaranty fund balances.
 transferred $ 2. 4 billion settlement.
 reduces guarantee exposure performance bond requirements guaranty fund contributions.
 guarantee liability immaterial recorded liability december 31 2010.


green realty corp.
 2012 annual report purchased sitq immobilier caisse depot placement quebec 31. 5%. interest 1515 broadway ownership 1750000 foot building.
 valued interests $ 1. 23 billion.
 sales agreement distressed sale minority dis count.
 acquired interest $ 458. mortgage.
 purchase price adjustment $ 475.
 acquired investment joint ventures.
 2011 city investment fund 49. 9%. 521 avenue ownership 460000 foot building.
 valued interests $ 245. 7 million $ 4. 5 million cash.
 $ 140. million mortgage.
 purchase price fair value adjust ment $ 13.
 refinanced $ 150. 2-year mortgage floating rate interest 200 points.
 interest $ 15.
purchase price liabilities 2011 acquisitions 51 east 180 110 1515 521 fifth 42nd street maiden lane broadway 44095 191523 34000 110100.
 east 42nd lane 110 east 42nd street 1515 broadway 521 fifth avenue
 44095 191523 34000 462700 110100
 33470 233230 46411 707938 146686
 market lease value
 in-place leases 98661
 liabilities
 87514 462645 86630 1314724
 adjustment mortgage
 market lease value
 liabilities
 purchase price allocation $ 80000 442325 84304 1234000 257143
 funded 81632 259228 70000
 equity investment 16000 40942 41432
assumed 2014 65000 458767 140000
 funded 200281835 2008259228 200270000 equity debt investment 16000 200840942 200241432 65000 140000 2010 acquisitions january 2010 sole owner 100 street. square foot office tower downtown manhattan foreclosure senior mezzanine loan.
 initial investment $ 40. 9 50% loan two loans acquired gramercy capital.
 2007.
 funded additional $ 15. agreement wachovia bank.
.
 gramercy declined trans ferred interests.
 restructured $ 139. 7 mortgage interest rate 350 points 30-day libor.
 2013 repaid march.
 2010 acquired 125 park avenue manhattan office tower $ 330.
 assumed $ 146. 25 in-place financ ing.
.. interest loan october.
 investments gramercy.
 45% 45 leased fee avenue $ 39. million mortgage debt $ 120. 4 45% herald square $ 25. 6 million debt $ 86. 1 million leased 292 avenue $ 19. 2 mortgage debt $ 59. 1.
 assets leased operators.


future rental commitments non- cancelable leases term one year minimum sublease rental income table.
 millions sublease income net.
 2018 $ 122 -17 17 $ 105
 2019 109 -17 ( 17 92
 2020 83 -3
 2021 71
 2022 69
 2023 516
 $ 970  $ -37 ( )  $ 933
 legal regulatory matters company subsidiaries defendants legal proceedings subject regulatory investigations inqui.
 ratings activity s&p global ratings.
 government agencies compliance laws regulations ratings antitrust.
 result adverse judgments damages fines penalties activity restrictions impact financial condition cash flows business competitive position.
 company believes defenses pursuing defenses resolution.
uncertainty in litigation government regulatory enforcement predict outcome timing resolution estimate judgments damages fines penalties activity restrictions.
 assurance on financial condition cash flows business competitive posi tion.
 review information assess outcome effects on financial condition cash flows business position may require record liabilities in financial statements.
 recog- nized liability when probable loss estimated.
 s&p global ratings financial crisis litigation company subsidiaries defend civil cases ratings activities global financial crisis 2008 20132009.
 law- suits in australia against company standard & poor international investment losses in collateralized debt obligations rated by s&p ratings.
 no assurance pay significant amounts resolve.
.
securities exchange commission rating organization registered securities exchange act 1934 s&p global ratings compliance federal securities laws.
 compliance issues no assurance remedies deficiencies.
 prosecutorial 2014 criminal indictments s&p global ratings managers analysts market manipulation standard poor 2019s credit market services failed supervise ratings analysts manipula tion.
 theories actions s&p italian sovereign debt 2011 2012.
 2017 court trani verdict s&p global 2017 annual report


expect transactions income tax expense.
 reorganization reevaluate deferred tax assets.
 operations new corporate structure may recognize non-cash deferred tax expense.
 additional deferred tax expense significant.
 reorganization additional costs.
 expenses new expenses.
 employees.
 board meetings. higher offices.
 incur new expenses professional fees sdrt settlement equity-based awards comply.
 corporate tax laws.
.
.
.
.
 offices.
 leased premises.
 corporate headquarters 200.
 randolph street chicago illinois 355000 square feet lease expires 2013.
 two five-year renewal options market rates.
 own building pallbergweg 2-4 amsterdam 150000 square feet.
 additional leased properties occupied square footage expiration.
overlook point lincolnshire illinois 1224000
 2601 forest woodlands texas 414000
 383000 2300 orlando florida 364000
 devonshire london 327000
 new york
 7201 hewitt charlotte carolina 218000
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
 locations lincolnshire illinois woodlands texas orlando florida carolina hewitt 2010 solutions.
.
 2011 lease 190000 square feet building london.
.
 2015 devonshire.


consolidated financial statements 2014commitments contingencies provide renewal options 3 to 7 years.
 leases retail space 5 to 20 years majority 10 years multi-year renewal options.
 september 2007 lease payments noncancelable $ 1. 4 billion $ 1. 1 billion leases retail space.
 rent expense $ 151 million $ 138 million $ 140 million 2007 2006 2005.
 lease payments noncancelable year years.
 2008 155
 2009 172
 2010
 2011
 2012
 lease payments $ 1425
 basic parts labor warranty hardware products.
 one year purchase.
 90-day warranty service parts.
 estimated cost.
 installed base claim rates cost-per-claim product failures.
 warranty liabilities adjusts amounts experience future estimates.
products subscription accounting.
 company recognizes warranty expense incurred.
 provides updates applications software compliance.
 estimated cost updates warranty costs software revenue.
 factors units delivered updates expected historical future cost resources.


network corporation 2008 $ 6 million interest penalty expense.
 interest $ 7 million.
.
 sling media.
 2007 shares 94%.
 $ 342 million transaction costs $ 8 million.
 exchanged employee stock options 342000 common stock $ 16 million.
 digital lifestyle products services.
 january 1 2008 distributed echostar.
 purchase business combination financial accounting standards.
.
 purchase allocated assets liabilities purchase price allocation.
 28779
 prepaid compensation costs 11844
 noncurrent assets
 acquisition intangibles
-process research development
 goodwill 256917
 assets acquired $ 371999
 current liabilities
 long-term liabilities
 net assets
 6% non-controlling interest sling media.
 $ 9 million deferred tax liability acquisition.
$ 62 million acquired intangible assets sling media transaction technology intangibles trademarks $ 34 million seven years reseller relationships $ 24 million three years contract intangibles $ 4 million four years.
-process research development costs $ 22 million expensed expense.
 goodwill not deductible income tax.
 business combination operations december 31 2007 january 1 2007.
 comparable period 2006.