jpmorgan chase co.
 2005 annual report 123 litigation reserve maintains reserves for litigations.
 outcome uncertain management believes december 31 2005 litigation reserves adequate.
 reviews reserves may be litigation.
 believes meritorious defenses outstanding litigation intends continue interest stockholders.
 note 26 2013 accounting derivative instruments hedging activities instruments increase reduce exposure to credit market risks.
 value from reference.
 jpmorgan chase markets derivatives end-user exposure credit market risks.
 sfas 133 accounting reporting standards for derivative instruments trading hedging.
 derivatives recorded balance sheet at fair value.
 accounting changes value depends contract trading or hedge.
 majority derivatives trading purposes.
firm uses derivatives hedge market modify interest rate investment objectives.
 trading derivatives recorded at value in trading assets liabilities note 3 page 94 annual report.
 hedge accounting derivative effective risk.
 designated hedge risk management objective strategy hedging instrument hedged item risk exposure effectiveness.
 assessed quarterly.
 ineffectiveness reported in earnings.
 fair value hedges changes fair value derivative recognized in earnings.
 hedge terminated fair value adjust ment amortized to earnings yield adjustment.
 cash flow hedges effective change value recorded in income recognized earnings.
 ineffective recognized in earnings.
 hedge relationship terminated change fair value recognized cash flows.
 hedge relationships discontinued related derivative amounts recognized in earnings.
qualifying investment hedges changes fair value revaluation foreign recorded translation adjustments.
 ineffective recognized earnings.
 jpmorgan chase hedges fixed-rate-term debt loans afs securities.
 interest rate swaps common risk assets.
 options swaptions forwards value.
 note 15 pages 114.
 amounts included earnings net interest income mortgage fees.
 gains losses commitments hedges.
 derivative contracts hedge variability cash flows floating-rate rollover short-term assets liabilities foreign currency-denominated revenues expenses.
 interest rate swaps futures forward contracts impact interest rate foreign exchange rate changes earnings.
 amounts earnings recognized.
 uses foreign exchange contracts debt instruments protect value investments foreign.
.
 excluded recorded net interest income.
table presents derivative instrument hedging activities year ended december 31 millions 2005 2004 hedge ineffective gains losses 58 199 flow hedge gains losses 2014 gains transactions 2004 results jpmorgan chase results.
 includes ineffectiveness hedging instruments excluded.
 12 months expected $ 44 million after-tax net gains december 31 2005 recognized earnings.
 maximum transactions hedged 10 years lending borrowing activities.
 jpmorgan chase hedge accounting hedges.
 credit derivatives difficulties.
 interest rate derivatives.
 year ended december 31 millions 2005 2004
 value hedge ineffective net gains losses 199
 cash flow hedge ineffective gains losses 2014
 hedging gains forecastedtransactions failed
.
 maintains litigation reserves litigations.
outcome litigation uncertain management believes december 31 2005 litigation reserves adequate.
 reviews reserves periodically reserves may be litigation.
 believes meritorious defenses litigation intends continue stockholders.
 note 26 2013 accounting derivative instruments hedging activities derivative instruments enable increase reduce exposure credit market risks.
 value derived from.
 jpmorgan chase makes markets derivatives end-user exposure risks.
 sfas 133 accounting reporting standards for derivative instruments trading hedging.
 derivatives recorded balance sheet at fair value.
 accounting changes value depends contract trading or hedge.
 majority derivatives trading purposes.
 uses derivatives hedge market exposures modify interest rate characteristics meet investment objectives.
trading end-user derivatives recorded assets liabilities note 3 page 94 annual report.
 hedge accounting derivative risk.
 derivative designated hedge risk management objective strategy hedging instrument hedged item risk exposure effectiveness assessed prospectively retrospectively.
 quarterly.
 ineffectiveness reported in earnings.
 fair value hedges changes fair value derivative recognized in earnings.
 hedge relationship terminated fair value adjust amortized to earnings yield adjustment.
 cash flow hedges effective change fair value recorded income recognized.
 ineffective recognized in earnings.
 hedge terminated change fair value recognized cash flows.
 discontinued related derivative amounts recognized in earnings.
 qualifying net investment hedges changes fair value derivative revaluation recorded translation adjustments.
 ineffective portions recognized in earnings.
jpmorgan chase hedges fixed-rate debt loans securities.
 interest rate swaps common interest rate risk assets liabilities floating rate.
 options swaptions forwards.
 note 15 pages 114 2013116.
 amounts included earnings interest income mortgage fees.
 gains losses commitments.
 derivative contracts variability cash flows floating-rate instruments transactions short-term assets liabilities foreign currency-denominated revenues expenses.
 interest rate swaps futures forward contracts common impact interest rate foreign exchange changes earnings.
 amounts recognized.
 uses foreign exchange contracts currency debt instruments protect investments foreign currencies.
.
 recorded net interest income.
table presents derivative instrument hedging activities december 31 millions 2005 2004 hedge ineffective gains losses 199 cash flow hedge ineffective gains losses 2014 hedging gains transactions 2004 results firm jpmorgan chase results.
 ineffectiveness hedging instruments excluded.
 12 months expected $ 44 million net gains december 31 2005 recognized earnings.
 maximum transactions hedged 10 years relate lending borrowing activities.
 jpmorgan chase hedge accounting hedges.
 credit derivatives difficulties.
 interest rate derivatives.


goldman sachs group.
 subsidiaries management revenues $ 3. 20 billion 2016 36% 36 % lower 2015 lower revenues equities gains private equities.
 revenues debt securities loans lower relationship lending credit spreads economic hedges.
 losses $ 596 million 2016 gains $ 329 million 2015.
 offset higher gains debt instruments.
 note 9.
 net interest income.
 $ 2. 59 billion 2016 16% 16 % lower 2015 higher interest rates liabilities deposits collateralized financings-term borrowings deposits.
 offset interest income collateralized agreements loans receivable.
.
 operating expenses influenced by compensation headcount business activity.
 salaries discretionary compensation amortization equity awards.
compensation impacted by net revenues financial performance labor markets business mix share- compensation programs external environment.
 see expenses litigation regulatory proceedings.
 initiative 2016 $ 900 million annual compensation.
 net savings approximately $ 500 million.
 operating expenses staff.
 2017 2016 2015
 compensation benefits $ 11853 11647
 brokerage clearing distribution fees 2540
 market development
 communications technology
 depreciation amortization
 occupancy
 professional fees
 other expenses
-compensationexpenses
 operating expenses $ 20941 $ 20304 $ 25042
 staff
 other expenses 2015 $ 3. 37 billion settlement agreement rmbs working group.
 note 27 consolidated financial statements 8 annual report 10-k.
 2016.
 operating expenses $ 20. 94 billion 2017 3% higher 2016.
 compensation benefits $ 11. 85 billion 2% higher 2016.
 ratio to revenues 37. 0%. 1% 2016.
 non-compensation expenses $ 9. 09 billion 5% higher 2016 investments growth.
 expenses investments digital deposit platform.
 increases depreciation amortization market development.
 technology expenses increased professional fees.
 offset lower provisions litigation regulatory proceedings occupancy expenses.
 provisions 2017 $ 188 million $ 396 million 2016.
 $ 127 million charitable contribution goldman sachs.
 compensation reduced.
 directors recommendations recipients.


goldman sachs group.
 subsidiaries revenues equities $ 6. 60 billion 4% lower than 2016 due lower commissions fees cash equity volumes.
 market volumes.
.
 revenues equities lower higher cash products.
 securities services unchanged.
 operating expenses $ 9. 69 billion 2017 decreased compensation benefits expenses increased technology expenses increased consulting costs.
 pre-tax earnings $ 2. 21 billion 54% lower than 2016.
 investing lending.
 longer-term.
 debt securities loans public private equity securities infrastructure real estate.
.
 unsecured loans digital platform.
 operating results investing lending segment.
 2018 2017 2016
 equity securities $ 4455 $ 4578 $ 2573
securities loans 3795 2660 1689
 net revenues 8250 7238 4262
 credit losses 674 657 182
 operating expenses 3365 2796 2386
 pre-taxearnings 4211 3785 1694
.
 private equities performance public equities losses prices.
 loans receivables higher net interest income.
 equity prices revenues.
 higher global equity prices tighter credit spreads.
 gains sales corporate performance.
.
 revenues investing lending $ 8. 25 billion 14% higher 2017.
 equity securities $ 4. 46 billion 3% lower losses public $ 183 million private equities.
 60% revenues corporate investments 40% real estate.
 revenues debt securities loans $ 3. 80 billion 43% higher 2017 higher net interest income.
2018 interest income $ 2. 70 billion $ 1. 80 billion 2017.
 credit losses $ 674 million 657 million impairment $ 130 million secured loan.
 operating expenses $ 3. 37 billion 20% higher consolidated digital compensation benefits.
 pre-tax earnings $ 4. 21 billion higher.
 revenues investing lending $ 7. 24 billion 70% higher.
 equity securities $ 4. 58 billion higher private equities $ 3. 82 billion.
 public equities $ 762 million.
 64% revenues corporate 36% real estate.
 debt securities loans $ 2. 66 billion 57% higher 2016 higher interest income $ 1. 80 billion.


financial statements bancorp fixed interest. until may 15 2058.
 floating rate three-month libor 500.
 interest rate swap $ 275 million fixed-rate debt floating.
 2008. 05%.
 redeemed 15 2013 redemption 100% principal interest.
 redemptions approval federal reserve board.
 fixed-rate bank notes 2009 2019 obligations subsidiary bank.
 $ 36 million 2009 800 million 2010 $ 275 million 2019.
 rate swaps $. billion debt floating.
 2008. 19%. 800 million. 275 million.
 $ 500 million notes 2003 matured.
 fixed rate 3. 375%.
 floating-rate bank notes 2013 obligations subsidiary bank.
 floating three-month libor 11.
 $ 797 million three libor 4 $ 400 million federal funds rate 12.
subordinated fixed-rate bank notes 2015 subsidiary bank.
 interest rate swaps.
 weighted-average rate. 29%. %
 junior bank notes 2032 2033 assumed bancorp subsidiary crown 2007.
 three-month libor 310 325.
 six.
 2033 2034 assumed subsidiary first national bank.
 obligations issued fnb trusts i ii.
 2035 assumed subsidiary 2008.
 obligations issued.
 three-month libor 169 142.
 bancorp guaranteed obligations acquired.
 advances rates 0%. 34%. interest payable monthly.
 secured residential mortgage loans securities $ 8. 6 billion.
 2. billion advances floating rate.
 bancorp interest rate caps $ 1. billion fhlb borrowings.
. billion advances.billion 2009 $ 1 million 2010 $ 2 million 2011 1 billion 2012 $. billion 2013.
 medium-term senior notes maturities one year to 30 years issued two subsidiary banks $ 3. 8 billion outstanding december 31 2008 $ 16. 2 billion future issuance.
 no other medium-term senior notes 2008.
.
 commitments bancorp financial instruments agreements financing.
 interest rate prepayment risks funding equipment communities.
 credit counterparty market risk.
 creditworthiness evaluated case-by-case policies.
 commitments liabilities guarantees summarized future payments.
 december 31.
 commitments extend credit
 letters credit
 mortgage loans
 noncancelable lease obligations
 purchase obligations
 capital expenditures
commitments extend credit are agreements fixed expiration dates fee.
 expire amounts represent future cash flow.
 bancorp exposed to credit risk nonperformance.
 fixed-rate commitments market risk exposure limited to replacement value.
 2007 reserve for unfunded commitments $ 195 million $ 95 million.
 standby commercial letters of credit guarantee performance.
 $ 3. 3 billion expire within one year $ 57 million $ 5. 3 billion between one to five years $ 0. 4 billion thereafter.
 standby letters guarantees.
.
 reserve was $ 3 million.
 66% 70% of letters secured.
 nonperformance bancorp has rights to underlying collateral real estate property inventory receivables cash securities.
 monitors credit risk using dual risk rating system


stanley financial statements 2014 unrecognized tax benefits $ 2. billion $ 4. 2012.
 $ 1. billion. $. billion net federal authority foreign tax credit offsets benefits affect tax rate future.
 interest penalties income taxes.
 company recognized $ 35 million $ 50 million $ 10 million interest expense net federal state tax benefits consolidated statements 2014 2013 2012.
 interest expense $ 258 million $ 293 million $ 243 million net federal state tax benefits.
 penalties tax benefits.
 reconciliation unrecognized tax benefits 2014 2013 2012.
 balance december 31 2011 $ 4045
 tax positions 299
 127
 decreases
 settlements taxing authorities
 lapse statute limitations
 december 31 2012 $ 4065
 increase
tax positions 267
 decreases -141
 decreases settlements -146 ( 146 )
 balance december 31 2013 $ 4096
 increase current $ 135
 increase 100
 decreases -2080
 decreases settlements
 decreases statute limitations -4 ( 4
 balance december 31 2014 $ 2228
 examination tax japan. new york.
 review irs appeals office tax years 1999 2013 2005 completed examination 2006 2013 2008.
 levels examination new york state city years 2007 2013 2009.
 expects conclusion.
 issues year 2010 tax rate financial statements.


devon energy subsidiaries financial statements 2013 debt maturities december 31 excluding premiums discounts millions.
 2014 $ 4067
 2015
 2016 500
 2017 750
 2018 125
 2019 6600
 $ 12042
 $ 3. billion syndicated unsecured revolving line credit matures october 24 2018.
 extend maturity one-year period approval lenders.
 facility interest fixed rate options twelve months.
.
 borrow prime rate.
 annual facility fee $ 3. million payable quarterly.
 december 31 2013 no borrowings.
 financial covenant.
 total funded debt capitalization no greater 65 percent.
 adjustments.
 noncash write-downs.
 debt-to- capitalization ratio 25. percent.
 $ 3. billion short-term credit program.
commercial paper debt maturity 1 90 days 365 days interest rates agreed.
 based federal funds libor money market rate.
 december 31 2013 devon average borrowing rate 0. 30 percent.
 december 31 2013.
 geosouthern 2013 devon issued $ 2. 25 billion fixed floating rate senior notes cash proceeds


received commitments $ 30. billion debt financing transactions $ 4. billion secured revolving credit $ 7. billion term loan $ 19. billion secured bridge loan.
 reliance on financing $ 19. billion bridge loan secured note offerings long-term financings merger closing.
 no assurance notes debt market volatility may exercise commitments.
 costs financing may higher.
 credit rating downgrades affect businesses cash flows financial condition operating results t-mobile.
 credit ratings impact cost future borrowings cost capital.
 current ratings reflect financial strength operating performance debt obligations.
 no assurance.
 downgrade rating businesses cash flows results t mobile.
 incurred direct indirect costs.
incurred substantial expenses completing transactions combined company expects integrating coordinating sprint businesses operations policies procedures.
 transaction costs incurred regardless.
 factors beyond control affect timing.
 difficult to estimate.
 exceed costs.
 affect financial.
.
 unresolved.
 december 31 2018 properties switching centers data centers call centers warehouses.
 size
 switching centers
 data centers 6
 call 17
 warehouses 21
 leased 64000 macro towers 21000 distributed antenna system small cell sites.
 2200 t-mobile retail locations stores kiosks 100 to 17000 square feet.
 office space 1000000 square feet corporate headquarters bellevue washington.
 2019 executed leases 170000 additional square feet headquarters.
offices engineering administrative.
 2022 space. 1700000 square feet regional sales.


new orleans.
 receivables money pool december 31.
 2004 2003 2002 2001
 1413 1783 9208
 money pool $. 4 million cash flow 2004 $ 1. million 2003 $ 5. million 2002.
 4.
 decreased $. million 2004 capital expenditures turbine inspection decreased customer service spending.
 increased $ 23. million. million temporary investments construction expenditures.
 increased $ 7. million 2004 refinancing 75 million long-term debt $. million common stock dividends.
 cash increased $. 5 million 2003 common stock dividends.
 issued $ 30 million. mortgage bonds 2008 $ 70 million. bonds 2013.
 proceeds $ 30 million 7% 7 % bonds 2008 $ 40 million 8% 8 % bonds 2006 $ 30 million.65%. mortgage bonds 2004.
 issuances redemptions cash flow proceeds trust cash new orleans.
 note 5 domestic utility companies energy statements.
 construction investments debt stock maturities working capital fuel power dividend interest payments.


oil gas activities future cash flows.
 millions 2009 2008 2007
 sales transfers oil gas production costs -4876 -6863 -4613
 changes prices production administrative costs 12344
 extensions recovery 1399 663 1816
 development costs 2786 1774 1569
 future costs -3641 3641 -1436 -1706
 estimates 5110
 changes purchases sales minerals -159
 discount 787 2724 1696
 income taxes -4441 12633 -6647
 -149 -31
 change year -8932
 4035 12967
 $ 5691 4035 12967
 change discontinued operations 284 528


long-term debt carrying amounts company financial instruments measured fair value short-term.
 asset retirement obligations records asset retirement obligations liabilities asbestos removal decommissioning contractual lease restoration obligations.
 changes asset retirement obligation amounts 2011 2010 2009.
 january 1 2009
 expense
 payment
 december 31 2009
 future retirement
 december 31 2010
 december 31 2011
 conditional asset retirement obligations assets asbestos remediation decommissioning not estimable december 31 2011 2010 insufficient information timing settlement.
 fair value not recorded consolidated financial statements.
 environmental remediation asset decommissioning required.
 conditional environmental asset retirement obligations discovered.
taxes expense financial statements before spin-off returns after positions.
 expense based on prevailing rates.
 federal taxes state income tax rate.
 state local franchise tax provisions allocable contracts included administrative expenses.
 deferred income taxes recorded revenues expenses different periods.
 deferred tax balances calculated using current tax laws rates.
 realizability tax assets need valuation allowances evaluated-alone tax attributes $ 18 million valuation allowance necessary december 31 , 2011.
 no allowance december 31 , 2010.
 uncertain tax positions-likely threshold recognized in financial statements.
 tax benefit greater than 50% upon settlement.
 threshold penalties expense penalty.
 penalties recognized income tax expense.
 accrued interest related uncertain tax positions.
timing accrued interest determined tax law underpayment.
.
 changes accruals uncertainties recorded earnings.


welltower inc.
 financial statements weight subjective evidence projections growth.
 valuation allowance rollforward summarized year ended december 31 2017.
 beginning balance $ 96838 $ 98966 $ 85207
 expense benefit 30445
 ending balance $ 127283 $ 96838 $ 98966
 acquisitions subject corporate taxes asset dispositions five-year period-in gains tax.
 income subject tax equal excess fair value asset adjusted tax basis gain.
 offset net operating losses capital loss carryforwards.
 year ended december 31 2016 acquired additional assets built-in gains subject built gains tax ten-year period.
 not recorded deferred tax liability potential built-in gains tax.
reit investment diversification empowerment act 2007 years after 30 2008 lease health care properties to trs operated by independent contractor. rent from trs related party rent exception treated as real property. includes real property personal property to hospital nursing facility assisted living care continuing care services.
 joint ventures.
 resident level rents operating expenses reported in consolidated financial statements subject to federal state foreign income taxes.
 net operating loss carryforwards offset taxable income future years.
 subject to audit by internal revenue service december 31 2014 subsequent.
.
 31 2011.
 subject to canada revenue agency provincial authorities may 2012. revenue customs august 2012.
 december 31  2017 net operating loss reit of $ 448475000.
 uncertainty deferred tax recorded tax asset nols reit.
 amounts offset future.
 reit nols tax credit carryforwards income exceeds deduction dividends.
 nol carryforwards 2017 expire 2036.
 tax cuts act eliminates carryback period limits nols 80% taxable income replaces 20-year indefinite.


adobe inc.
 financial statements goodwill purchased intangibles long-lived assets assigned to reporting segments acquisition.
 review goodwill for impairment annually second quarter fiscal year fair value below carrying amount.
 qualitative assessment macroeconomic conditions industry market considerations cost factors financial performance management strategy customers assets stock price.
 fair values segments greater than carrying amounts quantitative goodwill impairment test not performed.
 evaluate goodwill fair value to carrying value.
 equal weighting market approach income approach future cash flows.
 revenue operating costs.
 completed annual goodwill impairment test second quarter fiscal 2018.
 determined likely fair value exceeds carrying amounts.
 no indication of impairment quantitative goodwill impairment test not performed.
events annual goodwill impairment test fiscal year.
 amortize intangible assets over estimated lives review for impairment.
 monitor events-lived.
 assess recoverability future cash flows.
 less than carrying amount recognize impairment loss excess carrying amount over fair value.
 intangible asset impairment charges in 2018 2017 2016.
 assets amortized over estimated useful lives 1 to 14 years.
 amortization based economic benefits.
 weighted average useful lives assets.
 purchased technology
 customer contracts relationships
 trademarks
 rights
 backlog
 intangibles
 asset liability method.
 income tax expense recognized current.
 deferred tax assets liabilities recognized for future tax consequences differences financial reporting tax operating losses tax credit carryforwards.
record reduce deferred tax assets realization.


visa inc.
 financial statements 2014 30 2008 secured notes b-1995 lease agreement real estate partnership.
 office properties california lease financing office space agreement.
 $ 27 million interest rate. 83%. maturity 15 2015 payable monthly interest-only payments first ten years interest principal remainder term.
 debt costs $. 3 million $. 8 million loss termination contract amortized.
 settlement visa antitrust litigation default 1995 lease agreement.
 debt current liability september 30 2007.
 2008 visa.
 amendment waiver 1995 lease agreement default guarantee remaining obligations.
 interest terms unchanged.
 future payments outstanding debt.
 millions
 2009
 2010
 2011
 2013
.
 international.
 working capital corporate.
program allows issue $ 500 million unsecured debt securities maturities 270 days interest rates comparable.
 30 2008 no obligations.
 visa.
 $ 3. 0 billion five-year facility replaced $ 2. 25 billion facility.
 matures 15 2013 contains covenants defaults.
 compliance covenants.


table details growth global average berths north american european cruise guests five years weighted-average supply berths royal caribbean cruises.
 north american european.
 weighted-averagesupply. north
 2009 363000 84050 17340000 10198000 5000000
 2010 391000 18800000 10781000 5540000
 2011 412000 92650 20227000 11625000
 2012 425000 20898000 11640000 6139000
 2013 432000 98750 21300000 11816000 6399000
 estimates cruise guests weighted-average supply berths based data association.
 statistical analysis.
 cruise line international association nights 2009 2012.
 2013 estimates.
 united states america canada.
 clia europe european cruise council 2009 2012.
2013 estimates.
 majority cruise guests 56% 56 % global cruise guests 2013.
 compound annual growth rate 3. 2%. 2009 to 2013.
 europe 30% global guests 2013.
 annual growth rate 6. 0%. 2009 to 2013.
 asia/pacific region higher growth rate small sector.
 asia/pacific region 4. 5%. global cruise guests 2013.
 compound annual growth rate 15% 15 % 2011 to 2013.
 cruise lines.
 carnival corporation plc costa cunard holland america iberocruceros disney msc norwegian oceania.
 compete vacation alternatives hotels sightseeing destinations.
 demand influenced political economic conditions.
 consumer spending.
operating strategies protect environment serve global guest base grow business enhance revenues brands expenditures ensure cash liquid ity maximizing return invested capital shareholder value maintenance ships transfer innovations brand fleet new cruise ships deploying markets itineraries optimize returns focus markets customer preferences expectations profitability


republic services.
 financial statements 2014 quality institutions.
 balances fdic insured limits.
 monitor credit worthiness financial institutions deposits.
 credit risk limited variety customers markets dispersion operations.
 small-container large-container municipal residential energy services customers united states puerto rico.
 credit evaluations require collateral.
 allowance doubtful accounts credit risk age historical trends economic conditions.
 collection transfer recycling disposal energy services.
 recorded billed claims settled cash.
 estimated realizable value.
 provisions evaluated monthly historical collection experience age information economic conditions.
 review balances.
 reserves provided 90 days.
 past due receivable balances written-off collection unsuccessful.
 activity allowance doubtful accounts years december 31.
 balance beginning year $ 38.$ 44. 46. 7
 34. 8 30. 6 20. 4
 accounts written-off 39. 35. 7 23. 1
 balance end year $ 34. 3 $ 38. $ 44.
 december 31 2018 $ 108. million $ 78. 6 million insurance workers compensation liability auto liability.
 funds tax-exempt bonds expenditures landfills transfer stations collection recycling centers.
 deposited trust accounts.
 restricted restricted cash securities balance sheets.
 financial assurance agencies collection contracts landfills environmental remediation permits business licenses.
 cash trust funds escrow accounts.


graph compares yearly stockholder return last five years market price common stock return nasdaq composite index.
 peer group medical equipment code 3840-3849 index.
 assumes investment $ 100 march 31 2006 common stock nasdaq composite index.
 peer group reinvestment dividends.
 3/31/2006/31/2007/31/2008/31/2011
 abiomed inc 105. 101. 37.
 nasdaq composite index 103. 97. 65. 118.
 medical equipment 3840-3849.
 not material regulation 14a securities exchange act 1934 not filed securities exchange commission not incorporated filings securities act 1933.
 american stock transfer trust company 59 maiden lane new york.


sfas.
 142 goodwill intangible assets not amortized subject periodic assessment impairment fair-value-based test.
 deductible tax.
 company performs annual test impairment may.
.
 2006 no impairment 2006.
 allocated $ 15. 8 million purchase price in-process research development projects.
 acquired projects.
 cyvera veracode technology beadxpress reader.
 50% 25% 25 % complete.
 december 31 2006 90% 90 % 80% 80 % ) complete.
 value ipr&d determined costs net cash flows discounting value.
 revenue projections reduced probability new technology market sizes growth factors trends new product introductions.
 net cash flows based on estimates cost sales operating expenses income taxes.
 rates cash flows based estimated cost capital calculations.
forecast risks growth profitability discount rates 30% appropriate for ipr&d.
 company believes discount rates commensurate with projects development uncertainties economic estimates.
 if projects not developed sales profitability may.
 assumptions ipr&d analysis reasonable acquisition.
 no assurance assumptions project sales development costs profitability.
 acquisition technological feasibility research development no alternative future uses.
 costs expense second quarter 2005.
 unaudited information shows results operations years january 1 2006 2 2005 acquisition.
 revenue $ 73501 $ 50583
 net loss -6234 ( -9965 ( 9965
 loss per share. 15. 27.
.
 consolidated financial statements 2014


.
 expenses services increased 10% 2012 logistics management fees locomotive overhauls repairs.
 contract services increased $ 103 million increased demand transportation services logistics costs repair maintenance locomotives freight cars.
 road property rail ties ballast track material.
 depreciation up 1% 2012.
 longer service lives capital spending.
 expense.
 rental intermodal locomotive leases office rent.
 container costs logistics management increased automotive shipments $ 51 million increase freight car rental expense 2012.
 lower locomotive lease expenses expense.
 increased automotive intermodal shipments improved-cycle times rental expense.
 lower locomotive lease expense rental.
2013 expenses include taxes freight equipment damage utilities insurance personal injury environmental employee travel telephone software debt general.
 higher property taxes damaged freight property increased costs.
 safety lower liability personal injury reduced expense year-over-year costs.
 higher 2011 due to property taxes.
 personal injury expense increased 2012 liability reduction less 2011.
 non-operating items millions 2013 2012 2011 %.
 income $ 128 $ 108 $ 112 19 % 4 %
 interest expense
 income taxes 12 % 20 %
 increased higher gains real estate sales lease income $ 17 million settlement land lease contract.
 offset by interest tax refund.
 income decreased lower gains real estate higher environmental costs non-operating offset interest tax refund.
decreased lower interest rate 5. 7%. 6 0%. 2012
 increase-average debt $ 9. 6 billion 2013 9. 1 billion 2012 lower interest rate.
 lower interest rate 6. 0%. 2%. 2011 debt level.


marathon oil corporation financial statements long-term return plan assets.
 plan determined asset rate-of-return modeling tool third-party investment group returns inflation.
 pension plan asset allocation.
 current returns risk-free investments government bonds historical risk premiums expectations future returns.
 weighted asset allocation.
 health care cost trend rates.
 health care trend rate 8.%
 ultimate trend rate 4. 70%.
 2025 2025 2024
 subsidies post-65 retiree health care coverage frozen january 1 2017 2016.
 company contributions funded health reimbursement account health care benefits.
 1% change health care cost trend rates service interest cost postretirement benefit obligations.
 investment policies strategies policies.
 pension plan assets reflect funded status expectations future ability contributions.
investment goals manage assets legal requirements produce returns capital markets risk parameters assets erosion purchasing power position portfolios long-term risk/return orientation.
 performance monitored quarterly meetings asset liability studies.
.
 plan asset allocation 55% 55 % equity 45% 45 % fixed income securities.
 volatility allocation equity securities fixed income securities.
 assets managed third-party investment manager.
 allocation 55% 55 % equity 45% 45 % fixed income.
 invested ten portfolios pooled fund vehicles managed investment managers measured third value measured fair value.
 valuation techniques asset class 31 2016.
 cash cash equivalents valued market approach level 1.
 cash reserve account valued level 2.
 equity securities valued market closing price level 1.
equity investments partnerships valued estimated.
 level 3.
 pooled funds valued net asset value.
 equity fixed income.
.
.
 publicly-traded.
 benchmarked public index.
 2.
 fixed income securities valued market.
.
 valued closing price market level 1.
 corporate bonds.
 government bonds private placements taxable municipals pools bonds calculated yield curves.
 investments.
.
 corporate bonds industries level 2.
 futures contracts real estate trusts credit default zero coupon interest rate swaps.


contractual maturities securities january 30 2009 years $ 31. 4 million cost $ 28. million fair value.
 successor predecessor gains losses securities.
 cost identification method.
 lower.
 gross profit cost-to inventory ratio.
 warehousing distribution capitalized inventory.
 excess current cost $ 50. million january 2009 $ 6. 1 million february 1 2008.
.
 reserves adjusted zero july 6 2007.
 successor provisions $ 43. million $ 6. 1 million 2008 2007.
 predecessor credit $ 1. 5 million 2006.
 increased commodity cost pressures food pet products fruit vegetable prices freight costs.
 increases petroleum resin metals pulp cost increases.
company commodity cost increases increasing retail prices.
 estimates annual impact commodity cost fluctuations information.
 pre-opening costs construction periods expensed.
 property equipment recorded cost.
 depreciation amortization lives.
 land improvements
 buildings
 furniture fixtures equipment
 leased amortized lease term.


recourse repurchase obligations note 3 loans sale servicing pnc sold commercial residential loans securitizations whole-loan sale transactions continuing involvement.
 recourse repurchase obligations transferred assets.
 originate service multi-family loans sold fnma.
 similar program fhlmc.
 assume one-third risk loss unpaid principal balances.
 2011 2010 unpaid principal balance $ 13. billion $ 13. 2 billion.
 potential maximum exposure $ 4. billion.
 reserve estimated losses.
 $ 47 million $ 54 million liabilities consolidated balance sheet.
 payment contractual interest collateral loans losses value losses.
 exposure activity recourse obligations corporate institutional banking.
 mortgage recourse obligations.
 reserve adjustments
 losses 2013 loan repurchases settlements
 loan sales
december 31 $ 47 $ 54
 residential mortgage repurchase obligations non-recourse repurchase obligations sold.
 pnc origination covenants warranties.
 first second-lien agency non-agency securitizations whole-loan sale transactions.
 agency securitizations fhlmc gnma non-agency whole-loan private investors.
 obligations related fhlmc repurchase losses fha va-insured uninsured loans gnma securitizations minimal.
 repurchase obligation activity banking segment.
 repurchase obligations include brokered home equity loans sold private investors.
 pnc no longer brokered home equity lending exposure repurchase obligations limited repurchases whole-loans.
 non-strategic assets portfolio.
loan covenants representations warranties established loan sale agreements investors pnc sold loans investment quality.
 include compliance with loan criteria underwriting standards delivery loan documents collateral valuation validity lien securing loan.
 breaches investors request pnc indemnify against losses repurchase loans.
 claims settled through make- whole payments repurchases negotiate pooled settlements.
 indemnifications loss repurchases insufficient evidence breach covenant value transferred loan.
 respond indemnification repurchase requests within 60 days final resolution longer.
 pnc financial services group.
 2013 form 10-k 199


goldman sachs group.
 staff increased 6% 2016 investments technology regulatory efforts.
.
 operating expenses $ 20. 30 billion 19% 19 % lower 2015.
 compensation benefits expenses $ 11. 65 billion 8% 8 % lower 2015 expense savings initiatives.
 ratio compensation revenues 38. 1%. 2015.
 non-compensation expenses $ 8. 66 billion 30% lower 2015 lower provisions mortgage litigation regulatory matters.
 market development expenses professional fees lower.
 net provisions litigation regulatory proceedings $ 396 million. billion 2015.
 $ 114 million charitable contribution goldman sachs.
.
.
 staff decreased 7% 7 % expense savings initiatives.
 effective income tax rate 2017 61. 5%. 2%. 2016.
 impact tax legislation enacted.
income tax rates january 1 2018 territorial tax system repatriation tax earnings foreign subsidiaries.
 estimated impact increase income tax expense $ 4. 40 billion $ 3. 32 billion repatriation tax $ 1. 08 billion territorial tax system remeasurement.
 deferred tax assets lower corporate tax rates.
 impact legislation differ refinement calculations changes interpretations guidance actions.
 effective income tax rate 2017 22. 0%. down 28. 2%. 2016.
 tax benefits employee share-based awards.
.
 provision taxes $ 719 million effective income tax rate 6. percentage points.
 note 3 consolidated financial statements.
 income tax rate non-gaap not comparable.
 comparability.
 calculation tax rate.
 2017 pre-tax earnings taxes effective income tax rate

 $ 11132 $ 6846 61. 5%.
 tax legislation 2013
 $ 11132 $ 2446 22. 0%. %
. effective income tax rate 2016 28. 2%. down 30. 7%. 2015.
 decline non provisions mortgage litigation tax law deferred tax assets higher tax rates.
.
 2018 tax legislation reduced.
 corporate tax rate 21 percent eliminated tax deductions enacted taxes base erosion anti-abuse tax global intangible low taxed income.
 minimum tax banks 2 percent deductible expenses foreign subsidiaries.
. 5 percent tax earnings profits subsidiaries.
 impact beat income tax rate.


usa reduction net premiums 2008 driven financial solutions business $ 170 million loss transfer program.
 premiums middle-market compensation business large risk accounts property declining business.
 offset growth professional liability specialty casualty inland marine foreign casualty units.
 increase net premiums 2007 driven assumed loss portfolio new business energy specialty.
 middle market worker compensation business.
 reduction net premiums declines casualty inland marine business.
 offset crop business growth higher commodity prices.
 reduction net premiums 2008 lower production curtailment financial solutions business.
 loss expense ratio increased 2008 2007.
 impact catastrophe losses prior period development loss expense ratio 2008 2007 2006.
 expense ratio. 8 %. 1 %. 4 %
.4 %. 3 % 2013
 6. 2 %.
 loss expense ratio adjusted 72. 6 % 70. 6 % 69. 2 %
 insurance catastrophe losses $ 298 million 2008 $ 16 million 2007 2006.
 related hurricanes gustav ike.
 $ million 2008.
 $ 9 million $ 65 million 2007 2006.
.
 increase loss expense ratio due business mix higher premiums crop business high loss ratio.
 increased loss costs higher losses non-catastrophe events property marine energy.
 policy acquisition cost ratio increased 2008 private risk services higher.
 higher acquisition costs crop/hail business profitable results increased production.
 higher profit share commission. 8 percentage points 2008 policy acquisition cost ratio.
loss portfolio transfer 2007 reduced 2007 policy acquisition ratio. points.
 increases 2008 cost offset improvements ace bermuda increased ceding commissions.
 decrease 2007 policy acquisition cost ratio related ace usa westchester.
 reduction higher ceding commissions lower premium taxes.
 westchester reduction due lower profit share commissions crop business expense ratio increased 2008 private risk services reduction net premiums.
 administrative expense ratio stable 2007


table displays expected benefit payments years thousands.
 2007 $ 117
 2008 140
 2009 203
 2010 263
 2011 328
 5 years 2731
.
.
 bermuda law group prohibited declaring paying dividend if value assets less than value liabilities issued share capital.
 ability pay dividends operating expenses dependent upon dividends subsidiaries.
 payment dividends subsidiaries limited under bermuda law laws.
.
 limitations based upon net income compliance policyholders surplus solvency margin liquidity ratio requirements.
 prohibited from declaring dividend if fails meet minimum solvency margin liquidity ratio.
 unable to declare pay dividend policyholder unless value assets long-term business fund exceeds liabilities $ 250000 minimum solvency margin.
approval bermuda monetary authority required if dividend payments reduce prior year-end capital 15.
 delaware law insurance company pay dividends without notice insurance commissioner if proposed dividend exceeds 10% statutory surplus or net income capital gains.
 no dividend paid unassigned earned surplus.
 2006 everest re had $ 270. 4 million available dividends 2007 without regulatory approval.
.
 re prepares statements practices national association insurance commissioners delaware insurance department.
.
 capital statutory surplus $ 2704. 1 million and $ 2327. 6 million at december 31  2006 2005.
 net income $ 298. 7 million net loss $ 26. 9 million 2005 net income $ 175. 8 million 2004.
bermuda re prepares financial statements accounting principles insurance act 1978 regulations.
 capital surplus $ 1893. 9 million $ 1522. 5 million at december 2006 2005.
 net income $ 409. 8 million 2006 loss $ 220. 5 million 2005 net income $ 248. 7 million 2004.
.
 involved in lawsuits arbitrations dispute resolution procedures rights obligations under insurance reinsur- ance agreements.
 rights funds.
 attempts.
 disputes arise addressed resolved through informal means negotiated resolution arbitration litigation.


abiomed.
 subsidiaries financial statements 2014 evidence arrangement exists delivery occurred services rendered seller price fixed collectibility assured.
 sab 104 requires title risks rewards ownership buyer before revenue recognized.
 guidance eitf 00-21 revenue arrangements.
 revenues product sales maintenance service agreements.
 majority revenues ab5000 bvs 5000 product lines consoles blood pumps.
 recognize revenues costs product shipment.
 maintenance service revenues recognized.
 government-sponsored research development contracts grants cost-plus-fixed-fee.
 revenues recognized work performed funds.
 more project recognizes revenue research development costs.
 translation foreign currencies assets liabilities.
 translated year-end exchange rates revenues expenses average exchange rates.
.
 adjustments reflected loss shareholders 2019 equity.
transaction gains losses income not material three years.
 accrues future warranty costs sales.
 products regulation quality standards.
 warranty costs revenues statements.
 table warranty reserve two fiscal years.
 balance $ 245 $ 231
 warranty expense -212 212 -257 ( 257
 end $ 231 $ 167


october 2013 board directors declared quarterly dividend $ 0. 40 per share class a common stock payable december 3  2013 holders november 15  2013.
 expect continue paying quarterly dividends.
 declaration payment future dividends discretion board directors financial condition settlement indemnifications operating results available cash needs.
 purchases equity table information purchases common stock quarter september 30  2013.
 shares purchased average price paid share plans dollar value shares.
 july 1-31 2013 745148 $ 183. 69 744500 $ 1424252596
 august 1-31 2013 6640563 $ 176. 78 6638189 $ 250658812
 september 1-30 2013 2014 250658812
7385711 $ 177. 47
 3022 shares common stock average $ 182. 50 share 2007 equity compensation plan tax vesting release shares.
 figures reflect transactions.
 repurchases settlement dates.
 october 2013 authorized $ 5. 0 billion repurchase.


hartford financial services group.
 financial statements.
 offers enhanced rates bonus annuity products.
 expense bonus deferred amortized contract policy costs.
 contract.
 unlocked amortization sales inducement asset.
 note 7.
 changes deferred sales inducement activity december 31.
 2011 2010
 balance $ 459 $ 438 $ 553
 sales inducements deferred
 amortization income -8
 2014 -28 -69
 balance end year $ 434 $ 459 $ 438
.
 reserves future policy benefits unpaid losses insurance calculated net level premium interest withdrawal mortality assumptions.
 standard actuarial american academy actuaries.
 reserves discount rates earned investment yield morbidity/mortality tables.
company 2019s disability claim reserves morbidity table early based experience gender elimination period diagnosis.
 reserves computed future policy obligations.
 benefits computed additions premiums interest policy obligations death.
 assumptions mortality morbidity premiums interest affect reserve levels operations provisions adverse deviation liability assumptions.
 liabilities group life disability contracts term life insurance policies include unpaid losses future policy benefits.
 claims events.
 estimates based on facts internal factors experience historical trends claim payment patterns loss payments unpaid claims loss control programs product mix.
 influenced external factors court decisions economic conditions public attitudes.
 effects inflation.


vertex pharmaceuticals incorporated notes financial statements.
 stock-based compensation uses black-scholes valuation model fair value stock options grant date.
 option exercise price estimates assumptions expected price volatility stock period options return risk-free investments dividend yield.
 validates estimates assumptions consultations third parties.
 fair value option granted 2006 estimated weighted average assumptions 2022 stock price volatility 2006 changed implied volatility.
 options purchase 2019s stock terms one year traded.
 volatility calculated one month average daily implied volatilities grant date.
 risk-free interest rate bases.
 treasury securities period option term.
 expected term options.
 uses historical data employee exercise post-vest termination behavior.
.
 2022 annual dividends estimate dividends $ 0.company dividend.
 stock price volatility 57. 10 % risk-free interest 4. 74 %. 64 years.
 price volatility 57.
 interest 4. 74%.
. 64 years
 dividends


2005 plan stockholders approved.
 issuance options plan ceased.
 acquisition solexa assumed stock options 2005 solexa equity incentive plan.
 december 30 2007 13485619 shares common stock reserved.
 annual increase 5% last fiscal year board.
 december 30 2007 options purchase 1834384 shares future.
 stock option activity january 2 2005 december 30 2007 weighted average price.
 january 2 2005 6205020 $ 6. 99
 granted 2992300 $ 10.
 exercised -869925 4. 66
 cancelled $ 11.
 january 1 2006 7325431 $ 7. 96
 granted 27. 24
 exercised 7. 28
 cancelled 12. 44
 december 31 2006 8359120 13. 94
 options assumed 1424332 $ 21.
 granted 3784508 40.
 exercised 12.
 cancelled 22.
 30 2007 10423934 24.
.
 statements 2014


leveraged performance units may 31 2015 executives granted. market condition stock price growth three-year period.
 minimum threshold performance not no payout.
 maximum award opportunity fixed dollar number shares.
 three-year concluded october 2017 one-third earned units converted unrestricted common stock.
 two-thirds converted restricted stock installments first two anniversaries conversion.
 share-based compensation expense grant date fair value monte carlo model.
 table summarizes changes unvested restricted stock performance awards year december 31 2017 2016 fiscal transition period may 31 2016 2015 weighted-average grant-date fair value.
 may 31 2014.
 granted.
.
 forfeited.
 2015.
 granted.
.
 forfeited.
.
.
-639 31. 38
 forfeited 52 45. 27
 unvested december 31 2016 1263 49. 55
 granted 899 79.
 -858 858 39. 26
 forfeited -78 59. 56
 unvested 31 2017 1226 78.
 restricted stock awards $ 33. 7 million 2017 20. million 2016 17. 15. 2016 2015.
 compensation expense $ 35. 2 million 2017 17. 2 million 2016 28. 8 19. million 2016 2015.
 $ 46. 1 million unrecognized compensation expense. 8 years.
 accelerated vesting.
 price 100% fair market value common stock ten years.
 31 2015 equal installments four anniversaries.
.
 accelerated vesting.
.
 10-k annual report 2013


part ii item 5 2013 market registrant 2019s common equity stockholder matters issuer purchases securities common stock listed new york stock exchange traded symbol 201cpnc. close february 15 2013 75100 shareholders.
 entitled dividends declared board directors funds.
 board pay dividends past periods paid.
 quarterly cash dividends.
 future dividends economic market conditions financial condition operating results contractual restrictions government regulations policies regulatory capital limitations.
 dividend subject federal reserve 2013 capital analysis review.
 federal reserve dividends without approval.
 information dividend restrictions loans dividends advances subsidiaries 201csupervision regulation 201d 201cfunding capital sources risk management preferred securities 14 capital securities subsidiary trusts trust securities 22 regulatory matters consolidated financial statements item 8.
information pnc common stock prices/dividends statistical information item 8 report.
 compensation plans pnc equity securities authorized issuance december 31 2012 table item 12.
 registrar stock transfer agent dividend disbursing agent computershare trust company.
 250 royall street canton 800-982-7652 201ccommon stock performance 201d item 5.
.
.
 repurchases pnc common stock fourth quarter 2012 table thousands 2012 total shares purchased average paid shares maximum number shares.
 total averagepricepaid pershare
 october 1 2013 31 $ 60.
 november 1 2013 750 $ 55.
 december 1 2013 31 $ 55. 21551
 $.
repurchases pnc common stock fourth quarter 2012 redeemed 5001 shares series m stock december 10  2012.
 established pnc non-cumulative perpetual preferred stock series m former e.
 december 10 2012 issued $ 500. 1 million 5001 shares series m stock national city capital trust i stock purchase contract agreement pnc january 30  2008.
 redeemed 5001 shares december 10 2012 redemption price $ 100000 per share.
 pnc common stock purchased employee benefit plans.
.
 current stock repurchase program 25 million shares open market privately negotiated transactions.
 authorized october 4 , 2007 until.
 repurchases market economic conditions regulatory capital considerations alternative uses capital credit ratings contractual regulatory limitations federal reserve capital adequacy program.
 pnc services.


fair value options vested 2017 2016 2015 $ 6. million. $ 7. million.
 intrinsic value fortune brands stock options 2015 $ 70. 6 million $ 88. million $ 78. million.
 performance awards granted officers employees right earn shares common stock-wide performance conditions diluted earnings per share return invested capital net assets ebitda three-year period.
 compensation cost amortized expense three based probability performance targets.
 fair value high low stock price date grant.
 table summarizes performance share awards december 31 2017.
 awards granted.
 31 2016.
.
.
.
 31 2017.
 remaining unrecognized pre-tax compensation cost awards $ 6. 8 million weighted-average 1. 3 years.
performance share awards 2017 $ 5. 6 million 100580 shares.
 compensation outside directors.
 issued annually quarter.
 directors fees defer payment.
 compensation cost expensed fair value.
 2017 2016 2015 awarded 15311 16471 19695 shares common stock outside directors average fair value $ 63. 43 $ 57. 37 $ 46. 21 .
.
 closed new hires.
 retirement benefits 55 65.
 right future benefits.
 determined employee length service earnings.
 employer contributions.
.
 service cost 2017 benefit accruals hourly union defined benefit plan.
 accruals plans frozen december 31 2016.


provide to governmental agencies entities under environmental regulations landfill operations for closure costs performance collection landfill transfer station contracts.
 surety bonds letters of credit insurance policies trust deposits included in cash marketable securities assets consolidated balance sheets.
 determined by state environmental regulations.
.
 states require third-party engineering specialist determine costs.
 from obligation.
.
 varies by contract.
 assurance for insurance program collateral for performance obligations.
 increase in assurance requirements 2018.
 issued not considered indebtedness.
 not reflected in consolidated balance sheets record capping closure post-closure liabilities insurance liabilities incurred.
 no debt obligations operating leases assurances.
 no transactions obligations not disclosed in reported financial position results operations.
guaranteed third-party debt.
.
 operating activities purchases property proceeds sales consolidated statements.
 table calculates free cash flow years 31 2017 2016 2015 millions dollars.
 operating activities $ 1910. 7 $ 1847. $ 1679.
 purchases property -989. 8 989. -927. 927. 6.
 proceeds sales property 6. 9 21.
 cash flow $ 927. $ 929. $ 755.
 changes free cash flow operating investing activities.


performance graph compares return reinvestment dividends investment common stock standard 500 stock index dow jones united states travel leisure index five year stock prices december 2013 2018.
 royal caribbean cruises. 176. 220. 182. 271. 227.
&p 500. 113. 115. 129. 157. 150.
. 116. 123. 132. 164. 154.
 performance value common stock index $ 100 december 31 2013 dividends reinvested.
 performance not indicator future results.


realty investment trust estate depreciation 2005 depreciation amortization.
 31 2002 450697000
 additions 68125000
 deductions retirements -4645000
 2003 514177000
 additions 82551000
 deductions -1390000
 balance 31 2004 595338000
 additions 83656000
 deductions
 balance 31 2005 663750000


emerson annual report 37 taxes pretax income consolidated tax rates jurisdiction.
 income expense items recognized periods financial reporting tax filing deferred income taxes temporary differences.
 provides foreign withholding taxes.
 earnings non.
.
 provision taxes $ 3. 4 billion undistributed earnings.
 subsidiaries september 30 2018 indefinitely invested international operations.
 foreign withholding taxes.
 taxes undistributed.
 earnings triggered management decision repatriate.
 taxes practicable.
.
 weighted-average common shares earnings diluted earnings effects stock options incentive shares.
 inconsequential shares excluded 2018. million shares excluded 2017 2016.
 earnings participating securities inconsequential years.
 weighted-average diluted earnings 2016.
.
dilutive shares 2.
 646. 643.
 acquisitions divestitures 17 aventics smart pneumatics $ 622 .
 sales $ 425 industrial solutions automation solutions.
 goodwill $ 358 20 tax deductible intangible assets $ 278 intellectual property customer relationships 12 years.
 2 textron tools test equipment $ 810 .
 sales $ 470 manufacturer electrical utility tools diagnostics instruments tools home products.
 goodwill $ 374 17 tax deductible assets $ 358 14 years.
 1 acquired paradigm software oil gas $ 505 .
 annual sales $ 140 measurement analytical instrumentation automation.
 goodwill $ 328 160 tax deductible intangible assets $ 238  intellectual property customer relationships 11.
acquired four two automation solutions climate technologies.


.
 morgan chase.
 2003 annual report credit allocation assigned credit allocation pre tax earnings capital credit portfolio.
 periods revised allocation.
 increased pre-tax results $ 36 million allocated capital $ 712 million decreased sva $ 65 million.
 $ 46 million lower 2002 lower loan volumes higher expenses credit costs.
 revenue 2004 improved equity markets november 2003 bank january 2004 citigroup electronic funds.
 higher costs acquisitions investments business expansion.
 2003 revenue diversification investor services 36% institutional trust services 23% treasury services 40% large corporations middle market 18% banks nonbank financial institutions 44% public sector 6% middle east africa 27% asia/pacific americas 64% revenue chase middle market $ 347 million.
 revenue.
investor services 1449 1513 -4
 institutional trust 928 864
 -312 -303
 treasury securities services $ 3992 3%
 $ 41 million gain business 2003 $ 1 million trust 40 million.
 $ 50 million gain.
 securities clearing firm 2002.


graph shows five-year stockholder return common stock october 28 2012 29 2017.
 compared return standard 500 index rdg semiconductor composite index.
 assumes $ 100 invested october 28 2012 stock reinvestment dividends.
 amounts rounded nearest dollar.
 represents past future.
 5 year return. s&p 500 index semiconductor composite index $ 100 invested 10/28/12/31/12 reinvestment dividends.
 month-end.
 s&p.
.
 10/28/2012/27/2013/26/2014 10/25/2015 10/30/2016 10/29/2017
. 293.
&p 500.
 semiconductor composite.
 2017 2016 2015 board directors declared quarterly cash dividends $ 0. 10 per share.
anticipates cash dividends quarterly future board financial condition results capital requirements business conditions stockholders.
 10/28/12/27/13/26/14 10/25/15 10/30/16/29/17 materials.
 s&p 500 rdg semiconductor composite


wholesale distribution channels table presents doors geographic location products sold april 2 2016.
 americas
 europe 5625
 asia
 13502
. canada latin america.
 middle east.
 australia new zealand.
 three key wholesale customers sales volume.
 2016 sales macy's.
 11% 25% 25 % total net revenues revenues.
 sales three largest customers 24% 24 % 53%.
 products sold by sales forces.
 showrooms new york city.
 regional showrooms milan paris london munich madrid stockholm panama.
 shop-within-shops.
 brand recognition merchandising differentiate presentation.
 april 2 2016 25000 shop-within-shops channels.
 size 100 to 9200 square feet.
shop-within-shop assets include fixtures wall cases decorative items flooring.
 share cost with wholesale customers.
 stock replenishment.
 knit shirts chino pants shirts accessories home products ordered.
 ship within two to five days order receipt.
 sells 493 stores 3. 8 million square feet 583 concession shop-within-shops e-commerce sites.
 extension direct-to-consumer reach.
 omni-channel retailing strategy integrated shopping experience consistent message.
 ralph lauren stores feature apparel accessories watch jewelry fragrance home assortments exclusive merchandise.
 2016 opened 22 new closed 21.
 upscale street locations regional malls urban markets.


operating/performance financial statistics report railroad performance measures weekly to association american railroads including carloads daily inventory train speed terminal dwell time.
 provide data website./investors/reports/index.
 operating/performance statistics table 2009 2008 2007 % change.
 average train speed miles per hour 27. 3 23. 21.
 terminal dwell time hours 24. 24. 25.
 rail car inventory thousands 283. 300. 309. 9
 ton-miles billions 846. 5 1020. 1052.
 revenue ton-miles billions 479. 562. 6 561. 8 15
 operating ratio 76. 77. 3 79.
 employees average 43531 48242 50089
 customer satisfaction index  88  83  79  5
train speed calculated miles hours lines.
 lower volume network management initiatives productivity improvements contributed 16% 16 % 8% 8 % improvements 2009 2008.
 dwell time car terminals.
 improves asset utilization service.
 improved 2009 improved 1% 1 % 2007.
 lower volumes initiatives improved.
 gross revenue ton-miles calculated weight loaded freight miles.
 miles.
 decreased 17% 17 % 15% 15 % ) 2009 16% 16 % decrease carloads.
 commodity mix changes automotive shipments.
 decreased 3% 3 % flat 2008.
 ratio revenue.
 improved. 76. 2009. 77. 2008.
 pricing gains lower fuel prices network management initiatives improved productivity improvement 16% ( 16 % ) volume decline.
increases fuel cost network improved productivity 2008 fuel prices.
 productivity lower volumes reduced levels 10% 4%.
 fewer train engine personnel


management operating expenses influenced by compensation headcount business activity.
 litigation regulatory proceedings.
 salaries discretionary compensation amortization equity awards.
 compensation net revenues financial performance labor markets business mix share-based compensation programs external environment.
 operating expenses staff.
 2014 2013 2012
 compensation benefits 12691
 brokerage clearing exchange fees
 market development
 communications technology
 depreciation amortization
 occupancy
 professional fees
 insurance
 expenses
 non-compensation expenses
 operating $ 22171 22469 22956
 staff period-end 34000
.
 changes reserves reinsurance business interest policyholder balances expenses property catastrophe reinsurance claims.
2013 majority reinsurance.
.
 operating expenses $ 22. 17 billion unchanged.
 compensation benefits expenses $ 12. 69 billion.
 ratio revenues 36. 8%.
 staff increased 3% 3 %.
 non-compensation expenses $ 9. 48 billion 4% 4 % lower 2013.
 lower provisions litigation expenses decline insurance reserves.
 offset brokerage clearing exchange distribution fees.
 net provisions litigation regulatory proceedings $ 754 million $ 962 million 2013.
 charitable contribution $ 137 million goldman sachs.
 compensation reduced.
 directors recipients.
.
 operating expenses $ 22. 47 billion 2% 2 % lower 2012.
 compensation benefits expenses $ 12. 61 billion 3% 3 % lower. billion 2012.
 ratio net revenues 36. 9%.. 2012.
 staff increased 2% 2013.
 non-compensation expenses $ 9. 86 billion 2% 2 % lower 2012.
 decline insurance reserves sale americas reinsurance decrease depreciation amortization expenses lower impairment charges operating expenses.
 offset expenses higher provisions regulatory brokerage clearing fees.
 provisions $ 962 million $ 448 million 2012 settlement foreclosure review.
 charitable contribution $ 155 million goldman sachs.
 compensation reduced.
 asks directors recommendations recipients.
 2014 annual report


skyworks solutions.
 valuation allowance $ 47. million.
 $ 33. 6 million.
 tax credits $ 3. million acquired aati 2012 $ 13. million foreign deferred tax assets.
 valuation allowance $ 46. 6 million income tax benefit $ 0. 4 million reduction goodwill.
 $ 209. million future federal taxable income tax assets.
.
 valuation allowance.
 federal net loss $ 74. 3 million $ 29. 5 million acquisition sige 2030 $ 28. million aati 2031.
 limitations revenue code section 382.
 federal income tax credit carry forwards $ 37. 8 million $ 30. 4 million.
 state income tax credit forwards $ 33. 6 million valuation allowance.
 credits expire 2032.
 california research tax credits indefinitely.
company operations investments international jurisdictions.
 earnings.
 2012 no provision income taxes $ 371. 5 million undistributed earnings foreign subsidiaries.
 federal income tax liability.
 unrecognized tax benefits $ 52. 4 million $ 32. 1 million september 28 2012 30 2011.
 $ 38. 8 million tax rate.
 remaining valuation allowance positions.
 no positions twelve months.
 reconciliation tax benefits.
 balance september 30 2011 $ 32136
 increases prior 9004
 increases current 11265
 decreases settlements taxing authorities 2014
 decreases lapses statutes limitations
 balance september 28 2012 $ 52380
 annual report


american living launched jcpenney 2008 offers style modern spirit sensibility.
 essentials looks bedding home furnishings promises stylish clothing home products incredible value.
 jcpenney jcp.
 chaps translates lauren line men women children home.
 casual basics silhouettes classics enduring affordable.
 men 2019s collection department specialty stores.
 collections women children home.
 wholesale segment sells products upscale mid-tier department stores specialty stores golf pro shops domestically internationally.
 in-store product assortment presentation full-price sell-throughs.
 2011 ralph lauren products sold 10000 doors worldwide invested $ 35 million shop-within-shops stores.
 major.
.
 brands men 2019s distributed premier fashion retailers.
sell excess out-of-season products secondary distribution channels retail factory stores.
 japan wholesale products shop-within-shops premiere top-tier department stores women 2019s.
 asia wholesale mid top- tier department stores men women 2019s.
 concessions sales retail segment.
 number doors geographic location lauren-branded products wholesale primary channels april 2 2011.
 states canada
 3919 asia
 american living chaps-branded products wholesale sold domestically 1700 doors april.


five-year performance comparison 2013 graph shareholder returns corporation compared peer group index dj trans s&p 500.
 assumes $ 100 invested common stock union pacific corporation december 31 2007 dividends reinvested.
 purchases equity securities 2013 repurchased 13804709 shares common stock average price $ 115. 33.
 table common stock repurchases fourth quarter 2012 shares purchased average price paid share plan maximum.
 oct. 1. 31 1068414. 1028300 16041399
. 659631.
. 31 411683. 15035949
 2139728. 2033750
 shares purchased quarter 105978 shares delivered employees pay stock option prices excess tax withholding obligations.
1 2011 board authorized repurchase 40 million shares common stock march 31 2014.
 open market.
 management timing.


future minimum lease commitments december 31 2010 years.
 2011 $ 62465
 2012 54236
 2013 47860
 2014 37660
 2015 28622
 79800
 lease $ 310643
 rental expense leases $ 66. 9 million $ 57. 2 million $ 49. million 2010 2009 2008.
 acquisitions agreements sellers lease properties.
 lease terms initial five years five-year renewal options purchase options.
 right first refusal leased property.
 lease payments employee officer acquisition $ 1. million $. 9 million. 9 million 2010 2009 2008.
 guarantee residual values truck equipment leases.
 original cost.
 shortfall.
 more over residual value.
 leases 31 2010 guaranteed residual value $ 31. 4 million.
not recorded liability guaranteed residual value equipment leases recovery residual value.
 2005 2008 ford technologies filed complaints aftermarket parts imported.
 ford design patents.
 settled april 2009 september 2011.
 sole distributor.
 aftermarket automotive parts ford collision parts covered.
 design patent.
 paid ford upfront fee royalty each part.
 amortization royalty expenses reflected cost statements.
 contingencies claims subject environmental pollution control laws regulations.
 resolution affect financial position cash flows.


systems incorporated financial statements accounting uncertainty income taxes 2014 2013 changes unrecognized tax benefits summarized.
 2013
 beginning balance $ 136098 $ 160468
 increases tax benefits 2013
 18877 16777
 settlements taxing authorities -995 -55851
 statute limitations
 foreign exchange gains losses -3646 -1474 1474
 balance $ 148848 $ 136098
 november 28 2014 combined accrued interest penalties tax approximately $ 14. 6 million.
 income tax returns.
 federal.
 state jurisdictions.
 continual examination tax authorities.
 major tax jurisdictions ireland california.
. earliest fiscal years examination 2008 2010.
 outcomes adjustments.
 no assurance final determination operating results financial position.
july 2013.
 income tax examination 2008 2009 completed.
 accrued tax interest $ 48. 4 million long-term taxes.
 settled tax obligation cash income tax assets $ 41. 2 million $ 7. 2 million tax benefit third quarter 2013.
 timing resolution tax uncertain tax payments audit settlement.
 fluctuations balance sheet.
 months audits conclude statutes limitations expire.
 decreases tax benefits $ 0 to $ 5 million.
.
 2014 fourth quarter vacate research development facility china sales marketing facility russia.
 350 positions restructuring charges $ 18. 8 million.
 2015 vacate facilities.
 value future contractual obligations insignificant.
 reductions workforce consolidation facilities.
 november 28 2014 restructuring plans complete.
cash outlays obligations plans impact statements significant.


foreign currency transaction gains millions.
 2017 2016 2015
 mexico 17 -8 -6
 philippines
 bulgaria -8
 chile
 aes corporation -50
 argentina
 united kingdom -3
 colombia -8 8
 $ 42 $ 106
 gains $ 21 million $ 17 million $ 247 million foreign currency derivative contracts 2017 2016 2015.
 net gains $ 42 million 2017 vat activity mexico amortization derivatives philippines appreciation euro bulgaria.
 offset unfavorable currency derivatives colombia.
 net currency losses $ 15 million 2016 remeasurement losses intercompany notes losses swaps options aes corporation.
 offset argentina foreign currency derivatives government.
company recognized foreign currency gains $ 106 million 2015 due government receivables depreciation colombian peso.
 offset valuation intercompany notes corporation devaluation chilean peso.
 income tax increased $ 958 million $ 990 million 2017.
 effective tax rates 128% 17%.
 due.
 tax reform transition tax remeasurement deferred tax assets.
.
 tax expense decreased $ 380 million $ 32 million 2016.
 tax rates 17% 17 % 42% 42 % ).
 asset impairments. devaluation peso mexican subsidiaries valuation allowance brazilian subsidiaries.
 offset chilean income tax law reform.
 2015 rate due nondeductible impairment goodwill dp&l withholding taxes offset valuation allowance businesses brazil vietnam.
 2014asset impairment expense.
.
.statements form 10-k 2016 chilean income tax law reform.
 tax rate operations outside.
.
 foreign earnings higher.
 corporate rate 21% earnings.
 taxation new rules.
 future change impact tax rate.
 company benefits reduced tax rates countries commitments employment capital investment.
 note 20 2014income taxes 8. statements 10-k reduced rates.


management business-specific limits.
 firmwide finance committee sets asset liability business aged inventory limits financial instruments inventory.
 limits set close operating levels escalation discussion managers.
 committee balance sheet limits quarterly ad hoc business needs market conditions.
 monitoring key metrics.
 balance sheet metrics asset liability size aged inventory limit utilization risk measures capital usage.
 allocate assets new business activity market fluctuations.
 scenario analyses.
 manage size balance sheet maintain funding liquidity capital positions cover short long-term macro-economic.
 longer-term funding plans unsecured debt secured funding program equity capital.
 consider future constraints asset base funding.
 manage balance sheet risks severe crisis develop plans access funding generate liquidity redeploy issue equity capital.
 consolidated statements financial condition..
 balance sheet assets.
 management risks liquidity.
 table balance sheet allocation.
 millions december 2012 2011
 excess liquidity $ 174622 $ 171581
 cash
 181461 179469
 secured financing 283707
 inventory 318323 273640
 agreements 71103
 receivables 36273 35769
 institutional services 430873 380512
 equity 21267
 debt 25386 23311
 receivables
 investing lending 57156 56385
 inventory assets 488029 436897
 39623
 $ 938555 $ 923225
.
 2013 sold 45% ordinary shares icbc.
.
 reinsurance business sale december 2012.
 note 12 consolidated financial statements.


american tower corporation subsidiaries financial statements 2014 unused tower space broadcast towers rights.
 tv azteca retains title responsible operation maintenance.
 entitled 100% revenues leases responsible operating expenses.
 economic rights agreement seventy years tv azteca purchase rights last fifty years.
 rights repay loan.
 obligation pay tv azteca $ 1. 5 million annually reduced.
 annual payment $ 1. 5 million capital lease liability $ 18. 6 million.
 lease asset discount $ 30. 2 million cost economic rights amortized seventy-year.
 assesses recoverability note receivable.
 no adjustment value.
 former executive officer director tv 1999 2006.
 long-term notes receivable $ 4. 3 million $ 11. 0 million.
.
company enters interest rate protection agreements variable rate debt cash flows forecasted interest payments.
 exposed credit risk counterparty terms.
 exposure limited current value.
 believes contracts 2007 2006 credit worthy institutions.
 carrying amounts financial instruments estimated fair values assets notes receivable long assets balance sheet december 31 2007 amount interest rate term carrying amount fair value.
 interest rate swap agreement $ 150000 3. 95%. expiring 2009 $ -369
 100000 4. 08%. expiring 2010 -571
 $ 250000 $ -940


brokered home equity lines of credit.
 segment home equity portfolio loan delinquency modification status bankruptcy status mortgage loan same borrower.
 non-impaired loans delinquency roll-rate methodology.
 estimates loan balances from charge-off.
 based on loss experience.
 first second liens.
 ratio to second lien consistent charge-off amounts include losses loans.
 variable-rate home equity lines of credit have seven or ten year draw period 20-year amortization term.
 borrowers pay interest only or principal interest.
 principal interest less risky principal interest payments.
 risk loan terms alll.
 outstanding balances at december 31 2016 home equity lines of credit draw periods.
 home equity lines of credit 2013 draw period end in millions interest.
2017 $ 1657 434
 2018 796 636
 2019 546 483
 2020 442 434
 2021 2960 6438
 $ 6401 $ 8425
 home equity lines 2017.
 balloon payments $ 35 million $ 27 million $ 20 million $ 71 million $ 416 million 2017 2018 2019 2020 2021.
 impaired loans december 31 2016. 3% 30-89 days past due 6% 6 % 90 days past due nonperforming.
 60 past due privileges.
 collection/recovery processes loan modification.
 $ 12. billion december 31 2016 6% 6 % loan portfolio.
 $. billion indirect. 3 billion direct. 3 billion acquired securitized portfolios.
 loan applications franchised dealers.
 retail business.
elected pursue non-prime auto lending average loan origination score 760 indirect 775 direct.
. 4%. portfolio nonperforming. 5%. accruing past due.
 offer new used automobile financing.
 57% new 43% used.
 performance measured monthly collateral values fico scores quarterly.
 portfolio product channel evaluate default delinquency experience.
 portfolio loan structure collateral attributes credit metrics fico-value.
 oil gas industry $ 2. 4 billion 1% loan 2% commercial lending.
 $ 1. billion midstream downstream $. 8 billion. 6 billion.
 $. 2 billion not asset based.
 nonperforming loans oil $ 184 million 8% nonperforming assets.
 coal industry $. 4 billion less than 1% loan commercial lending.
loans coal 2016 $ 61 million 3%.
 pnc financial services group.


december 31 2015 future minimum payments lease financing.
 2016 $ 5754
 2017 5933
 2018 6113
 2019 6293
 2020 6477
 18810
 payments 49380
 less interest land lease expense -30463
 payments facility financing obligations 18917
 property landlord 23629
 value obligation 42546
 current portion
 long-term obligation $ 41210
 construction 2013 de-recognition asset liability sale-leaseback accounting.
 involvement.
 lease financing obligation payments reduction principal financing obligation interest expense land lease expense.
 asset depreciated life 30 years.
 lease de-recognize net book values remaining financing obligation.
 manufacturing supply chain third-party contract manufacturers reduce.
 purchase orders non- cancelable commitments.
purchase strategic component inventory non-cancelable including integrated circuits consigned contract manufacturers.
 2015 non-cancelable purchase commitments $ 43. 9 million.
 provided restricted deposits third-party.
 $ 2. 3 million deposits 2015 2014.
 classified balance sheets.
 agreements customers channel partners indemnification provisions intellectual property rights.
 repair infringement replace non-infringing refund customers


asset utilization 2013 economic lower revenue implemented productivity initiatives efficiency costs resources lower demand.
 reductions 26% road locomotives 18% freight car inventory.
 reduced shift levels rail closed operations 30 114 rail yards.
 workforce 10%.
 fuel prices economy worsened fuel prices dropped $ 33. 87 per barrel five-year low.
 crude oil prices increased $ 80 per barrel.
 average fuel price decreased 44% 2009 operating expenses $ 1. 3 billion.
 reduced consumption rate 4% saving 40 million gallons fuel.
 newer efficient locomotives distributed locomotive power fuel conservation programs improved network asset utilization.
 free cash flow 2013 $ 3. 2 billion $ 515 million 2009.
 investing.
 financial measure.
 financial performance.
.
table reconciles cash operating free cash flow millions 2009 2008 2007.
 operating activities $ 3234 $ 4070 $ 3277
 investing activities -2175 ( 2175 -2764 ( 2764 -2426 2426
 dividends -544 -481 -364 (
 free cash flow $ 515 $ 825 $ 487
 2022 benefits employees customers shareholders public.
 multi approach safety technology risk assessment quality control training.
 total safety culture.
 safe practices.
 best practices.
 reducing grade-crossing incidents maintain upgrade crossings video cameras public safety.
 traffic flows network patterns simplify operations variability efficiency asset utilization.
 adjust manpower locomotive rail fleets


intel corporation financial statements value awards 2015 $ 1. 5 billion. 2014 $ 1. billion 2013 market value common stock.
 grant-date fair value $ 1. 1 billion $ 949 million 2014 $ 899 million 2013.
 shares common stock withheld tax withholding.
 expected vest net future forfeitures.
 december 26 2015 $ 1. 8 billion unrecognized compensation costs equity incentive plans.
. 2 years.
 option awards options vested expected vest number options millions weighted.
 43. $ 21.
.
. $ 713
 intrinsic value difference exercise price $ 34. closing price common stock december 24 2015 nasdaq market options.
 expected vest net estimated future option forfeitures.
$ 42 million 2015 68 million 2014 186 million 2013.
 $ 13 million unrecognized compensation costs.
 costs eight months.


masco corporation notes financial statements.
 goodwill intangible assets december 31 accumulated impairment losses additions discontinued operations pre-tax impairment charge cabinets related products.
.
.
.
.
.
.
.
.
.
.
 587 $ 364 $ 223 $ 2014 181.
 goodwill december 31 2010 accumulated impairment losses 31 additions discontinued pre-tax impairment charge goodwill december 31 2011
 cabinets related products $ 587 $ -364 $ 223 -44 $ 181
 plumbing products 536 -340
 installation services -762 1057
 decorative architectural products 294
 specialty products -367 367 613
 $ 4216 -1833 $ 2383 -486 1891
additions include acquisitions.
 2011 company reclassified goodwill business units sale.
 recognized charge for units loss write-down $ 13 million.
 foreign currency translation purchase price adjustments acquisitions.
 2012 2011 completed annual impairment testing goodwill assets.
 2012 no impairment.
 2011 impaired.
 recognized non-cash pre-tax impairment charges for goodwill $ 486 million $ 330 million 2011.
 declining demand decreased operating margins.
 architectural products builders hardware competitive conditions.
 north american window door business new home construction. reduced repair recovery slower.
 assessed long-lived assets no impairment at december 31 2011.
 indefinite-lived assets were $ 132 million $ 174 million at december included registered trademarks.
2012 2011 impairment test trademark north american specialty plumbing impaired long-term outlook.
 recognized charges $ 42 million $ 27 million $ 8 million 5 2012 2011.
 2010 recognized charges $ 10 million $ 6 million after tax installation services $ 9 million plumbing products $ 1 million.


24 93 net sales japan flat 2002 2001 slight decline 2%.
 growth consumer decline power macintosh.
 imac sales increased 85% 2002.
 depressed net sales first quarter 2001.
 net sales worsened 2002 poor economic conditions.
 opened 25 stores 2003 65 27 2003 40 2002 8 2001.
 quarter 2004 opened 9 stores first international store tokyo.
 net sales grew $ 621 million 2003 $ 283 million 2002 $ 19 million 2001.
 $ 338 million 119% increase 25 new stores.
 macintosh sales increased $ 170 million $ 108 million increases powerbook sales.
 increases net sales peripherals software services 2003.
 45% net sales apple-branded third-party peripherals software services 28% 28 %.
 54 stores open 2003 annualized revenue per store $ 11.million compared to $ 10. 2 million 28 stores 2002.
 improved from loss $ 22 million 2002 to $ 5 million 2003.
 attributable to increase net sales higher leverage occupancy depreciation fixed costs.
 expansion required investment in assets infrastructure operating lease commitments personnel operating expenses.
 capital expenditures totaled $ 290 million 2003 $ 92 million incurred 2003.
 1300 employees operating lease commitments $ 354 million.
 costs close stores.
 affect financial condition.
 investment risky significant investment economic climate fixed operating expenses.
 gross margin three fiscal years 2003.
 net sales $ 6207 $ 5742 5363
 cost sales
 gross margin $ 1708
 percentage.
 margin decreased to 27. 5%. net sales 2003 from. 9%. 2002.
decline gross margin reflects aggressive pricing actions macintosh models 2002 pricing pressure lower sales higher margin 2003 increased air freight manufacturing costs power mac g5 15-inch powerbook shipping 2003.
 decline component costs.
 negative factors offset by increase higher margin software direct sales.
 anticipates gross margin under pressure 2004 weak economic conditions price competition potential increases component pricing.
 expects air freight charges on power mac g5 products 2004.
 margin pricing air freight charges future conditions.
 no assurance current gross margins targeted levels.


obligations commercial commitments table summarizes obligations march 31 2007 effects liquidity cash flows.
 payments 1 1-3 3-5 5 years
 operating lease obligations $ 7669 1960 $ 3441 $ 1652 616
 purchase obligations
 $ 14090 $ 8381 3441
 no long-term debt capital leases material commitments march 31 2007.
 may 2005 acquired shares impella cardiosystems aachen.
 purchase price contingent payment $ 5. 6 million january 30 2007 $ 45. 1 million $ 42. 2 million $ 1. 6 million cash $ 1. 3 million transaction costs.
 additional contingent payments shareholders up to $ 11. 2 million.
 cash stock.
 carrying value goodwill.
 disclosure provisions.
 45 guarantor 2019s accounting disclosure requirements guarantees indebtedness interpretation fasb statements.
 5 57 107 rescission interpretation.
 34.
 agreements guarantee indemnification clauses.
 disclosure provisions expand.
 guarantors guarantees.
 description arrangements guarantor.
 agreements underwriters contractors clinical sites customers indemnification provisions.
 indemnify hold harmless indemnified party losses.
 provisions survive termination.
 maximum future payments unlimited.
 never incurred costs defend lawsuits settle claims.
 estimated fair value minimal.
 no liabilities recorded march 31 2007.
 clinical study agreements indemnify institutions losses personal injury.
 indemnification provisions limits.
 never incurred material costs.
 accrue estimated future warranty costs sales shipment.
products subject to regulation quality standards.
 quality programs warranty obligations affected by failure rates.
 results warranty.
 indemnifications indemnify against patent infringement.
 limits.
 never incurred costs defend lawsuits patent infringement claims.
.
 property indemnifications require disclosure.


cdw corporation subsidiaries financial statements 2013 denominator impacted common shares ipo underwriters 2019 exercise.
 shares issued july 2 31 partially reflected 2013 denominator.
 reflected 2014 denominator.
 note 9.
 dilutive effect restricted stock options mpk plan units diluted earnings share treasury.
 reconciliation basic shares diluted shares.
 2013 2012 2011
-average shares.
 dilutive securities.
.
 2013 2012 2011 diluted earnings per share excludes impact. potential common shares-dilutive.
.
 deferred compensation plan 10 2010 purchase $ 28. 5 million senior subordinated debt restricted debt unit plan unfunded nonqualified deferred compensation plan.
 28500.
 december 31 2013.
rdus outstanding vest daily three january 1 2012 through december 31 2014.
 participants no rights debt.
 compensation plan based principal interest.
 principal credits $ 28. 5 million senior subordinated notes redemption premium equivalents.
 interest credits interest earned march 2010 october 12 2017.
 interest 2010 2011 deferred until 2012 paid semi-annually.
 payments $ 1. 7 million $ 1. 3 million april october 2013.
 proceeds borrowings $ 324. million senior subordinated notes august 1 2013.
 amended rdu plan increase retentive value.
 principal converted cash-denominated pool redemption senior notes.
 added $ 1. 4 million principal component december 31 2013 redemption premium equivalents.
amended rdu plan redemption notes ceased accrue credits.


consolidated financial statements 2014 amounts millions liability 2007 2003 2001 restructuring programs.
 2003 2001
 liability december 31 2006 $ 2014 $ 12. $ 19. $ 31.
 charges adjustments 19. 5 13.
 -7. 6.
 december 31 2007 $ 11. 9 $ 9. $ 8. 7 $ 29. 6
 charges adjustments 4. 3. 8 5. 8
. -4 5 6 22.
 december 31 2008 $ 1. 2 $ 5. 7 $ 5. 9 $ 12.
 adjustments foreign currency exchange rates.
 reorganization-related charges realignment media businesses mediabrands 2006 merger.
.
 charges first half 2009.
 draftfcb 2006.
charges separated operating expenses consolidated statements result normal business.


antitrust settlement.
 income 2005 2004 aftertax $ 13 million 8 cents $ 19 million 11 cents value obligation ppg settlement asbestos claims.
 business sales income.
 coatings 5566
 glass
 chemicals
 sales increased $ 291 million 5% % 2005.
 3% 3 % higher selling prices 1 improved volumes aerospace architectural declines foreign currency.
 income decreased $ 168 million 2005.
 inflation $ 315 million $ 245 million higher raw material costs.
 selling prices earnings $ 169 million.
 earnings reduced $ 132 million settlement insurance recoveries.
 income increased sales volumes manufacturing efficiencies cost reductions income.
 glass sales increased $ 33 million 1% 1 % 2005.
 improved volumes automotive glass declines.
foreign currency offset lower prices automotive glass equipment.
 income decreased $ 113 million 2005.
 federal glass class action antitrust settlement $ 61 million natural gas costs $ 19 million gain reduction earnings $ 129 million.
 increase $ 16 million improved manufacturing efficiencies lower overhead costs.
 impacted natural gas prices lower sales lower equity earnings weaker pricing asian electronics $ 19 million gain.
 fiber glass earnings improve 2006 price strengthening asian electronics market cost reduction joint venture china.
 high labor.
.
 2005 earnings north american automotive glass declined $ 30 million 2004.
 structural changes industry loss.
 market share general motors ford.
 challenging environment suppliers.
half decline earnings natural gas costs sales price reductions manufacturing costs.
 half decline lower sales volumes higher program costs.
 high energy prices.
 manufacturing efficiencies cost reduction growth sales.
 chemicals sales increased $ 364 million 18% 2005.
 21% 21 % higher selling prices chlor-alkali 1% 1 acquisition optical foreign currency.
 volumes declined 4% 4 chlor-alkali chemicals.
 hurricanes.
 operating income increased $ 160 million 2005.
 high selling prices chlor-alkali.
 higher inflation 136 million energy ethylene costs $ 34 million costs hurricanes $ 27 million asset impairment lower sales volumes higher manufacturing costs environmental expenses.
 eight months.
 hurricanes lowered earnings $ 58 million 57% % gas.
hurricane rita charles plant eight days september 2005 report form 10-k


table adjusts revised diluted earnings per share 2005 impact non-substantive vesting period approach.
 stock-based compensation.
 earnings per share 2014 diluted
 2014 $ 3.
 impact retirement-eligible employees.
 non-substantive vesting period approach.
.
 first quarter 2007 3m changes businesses markets.
 significant changes 2022 3m 2019s business opportunity track and trace initiative efforts future growth.
 applications tracking packages managing medical legal records.
 safety security protection services businesses highjump software. track and trace products communications.
 visual systems business projectors transferred electro communications segment.
 transfer leverage markets customers suppliers technologies.
 industrial transportation segment transferred 2122 aluminum conductor composite reinforced electrical power cable electro communications segment.
aluminum-based metal matrix accr product increases transmission capacity power lines.
 sells insulating testing connecting products utility.
 2022 adhesives tapes industrial transportation transferred consumer office electro communications.
 maintenance-free respirator products safety security protection services transferred.
 2022 3m transferred film manufacturing supply chain operations display graphics business.
 financial information reflects impact changes.
 3m businesses organized segments products.
 operations six segments industrial transportation health care display graphics consumer.
 technologies innovative products services sharing business resources.
 worldwide responsibility 3m product lines.
 not dependent single product market.
 small businesses lab-sponsored products corporate assets expenses not allocated segments.
 transactions recorded cost.
 integrated enterprise intersegment cooperation cost allocations inventory transfers.
 segments income.
allocations shared not activity assets depreciation capital expenditures.


consolidated financial statements 2014.
 may 31 2009 $ 55. million purchase price escrow account.
 former parent company pledged stock loan september 24 2009.
 repayment stock released $ 35. million purchase price seller.
 remaining $ 20. million escrow until january 1 2013 liabilities.
 acquisition presence russian market opportunities central eastern europe.
 purchase price determined financial statements.
 not significant financial statements information.
 global payments indirect guarantee.
 default transfer shares trustee pay.
 2009 maximum future payments $ 44. 1 million total $ 21. 8 million due paid june 24 2009 $ 22. 3 million due september 24 2009.
 total $ 55 million escrow.
 obligation guarantee de minimis.
 preliminary purchase price allocation.
assets $ 10657
 35431
 intangible assets 16500
 trademark 3100
 property equipment 19132
 long-term assets 13101
 acquired 97921
 liabilities -7245
 notes payable -8227
 deferred taxes-term liabilities
 assumed -22921
 assets acquired $ 75000
 goodwill non-deductible tax.
 assets amortization 9 15 years.
 trademark amortization 10 years.
 payments asia-pacific philippines 2008 acquired.
 56% 56 %


mastercard incorporated financial statements 2010 board authorized plan repurchase $ 1 billion common stock.
 repurchase shares 2010.
 february 16 2011 completed repurchase. 3 million shares $ 75 million.
.
 2006 long-term incentive plan amended restated october 13 2008.
 shareholder-approved equity awards employees.
 granted restricted stock units non-qualified stock options performance stock units.
 vest three four years.
 options expire ten years grant vest four years.
.
 one-time grant non management employees 440 thousand rsus.
 vested three years.
 straight-line method attribution equity awards.
 expense net estimated forfeitures.
 adjusted.
 termination employment unvested awards forfeited.
 retirement retains awards service.
retirement age service 55 ten 60 five 65 two.
 compensation expense recognized shorter vesting periods.
 11550000 shares common stock reserved equity awards.
 no.
 option exercises conversions funded issuance new shares.
 fair value estimated date grant black-scholes option pricing model.
 weighted-average assumptions fair value option 31.
 risk-free rate return 2. 7%. 7 %. 5%. 5 % 3. 2%. 2 %
.
 volatility 32. 7%. 7 7%. 7 % 37. 9%. 9 %
 dividend yield. 3%. 3 % 4%
-average fair value option $ 84. $ 71. $ 78.
 risk-free rate return based.
 treasury yield curve.
company utilizes calculating expected term option vesting terms contractual life.
 volatility options 2010 2009 average implied volatility mastercard historical volatility


new business model retail segment risky significant investment current economic climate fixed operating expenses.
 results dependent risks uncertainties future results financial condition. product backlog not future business prospects.
 increases new product introductions over- ordering.
 reduced sufficient supply.
 backlog reliable indicator revenue financial performance.
 information "factors future results financial condition. gross margin three fiscal years 2002 increased to 28% ( 28 % ) net sales 2002 from 23% ( 23 % 2001.
 2001 low negative gross margin 2% first quarter.
 quarterly gross margins declined 2002 from 31% 31 % first to 26% ( 26 % ) fourth quarter.
 decline component costs aggressive pricing.
 anticipates gross margin under pressure 2003 weak economic conditions flat demand pressure prices.
statements gross margin 2003 demand for computers forward- looking.
 could differ factors future results. no assurance current margins targeted levels.
 gross margins under downward pressure due to global pricing pressures increased competition compressed product life cycles cost raw material manufacturing services changes product mix higher sales lower prices lower gross margins.
 company expects pricing actions.
 gross margins affected quality warranty costs stimulate demand.
 operating strategy pricing changes foreign currency exchange rates results affected by fluctuations exchange rates.
 orders components builds inventory.
 markets volatile risk excess inventories.
 operating results financial condition affected by inventory levels purchase commitments demand.
 gross margin declined to 23% ( 23 % net sales 2001 from 27% 2000.
decline margin negative 2% 2 % first quarter 2001 26% 2000.
.
 2002
 net sales $ 5742 5363 7983
 cost 4139
 margin $ 1603 1235 2166
 28% 23% 27% 27 %


18 2013 board approved $ 10 billion share repurchase program june 30 2018.
 schlumberger repurchased $ 8. 6 billion december 31 2015.
 table summarizes 2015 2014 2013 average price.
 $ 2182180 26751.
 2014 4677687 47545. $.
 $ 2596447.
 21 2016 board approved $ 10 billion repurchase program schlumberger.
 remaining $ 1. 4 billion exhausted.
 net cash $ 8. billion 2015 $ 11. billion 2014 10. billion 2013.
 decrease lower earnings-cash increase higher earnings.
 dividends 2015 2014 2013 $ 2. 4 billion. 1. 6 billion.
 15 2015 approved 25% increase quarterly dividend $.
schlumberger approved 28% increase quarterly dividend $.
 capital expenditures $ 2. billion 2015 4. billion 2014 $ 3. billion 2013.
 $ 2. 4 billion 2016.
 $ 500 million spm project.
 obligated $ 500 million 2016.
 2015 2014 2013 $ 346 million $ 390 million $ million postretirement benefit plans.
 86% funded 2015 2014.
 international 93% funded.
 94% 94 % 2014.
 $ 350 million postretirement benefit plans 2016.
 maintains. billion guaranteed euro note program.
.
 issued. guaranteed notes due 2019.
 $ 13. billion cash short-term investments.
 debt agreements $ 3. 8 billion banks $ 1. 4 billion unused 31 2015.
.


five-year performance comparison 2013 graph shareholder returns corporation compared peer group index dj trans s&p 500.
 assumes $ 100 invested common stock union pacific corporation december 31 2011 dividends reinvested.
 information historical not indicative future performance.
 purchases equity securities 2013 repurchased 35686529 shares common stock average price $ 88. 36.
 table common stock repurchases fourth quarter 2016 shares purchased average price paid plan.
 oct. 1. 31 3501308 $. 23769426
. 2901167. 2876067
. 31 3296652. 17597259
 9699127 $ 97. 60 9624667
 purchased 74460 shares employees stock option prices excess tax withholding obligations.
january 1 2014 board authorized repurchase 120 million shares december 31 2017.
 open market.
 management timing.
 november 17 2016 renewal repurchase 120 million 31 2020.
 january 1 2017 replaces previous expired 31 2016.


graph compares return dividends common stock standard's 500 composite stock index dow jones united states travel leisure index five year prices 2011 2016.
 royal caribbean cruises. 139. 198. 350. 362.
. 153. 174. 198.
 dow jones travel leisure. 113. 164. 191. 203. 218.
 performance graph value common stock index $ 100 december 31 2011 dividends reinvested.
 performance not indicator future results.


depreciation amortization profit 2007 2006 millions.
 $ 78. 66.
 57.
.
 operations 114. 79 75.
 $ 275. 230. 197
.
 rental commitments leases 2008 $ 38. 2 million 2009 30. 1 million 2010 20. million 2011 15. 2012 14. 3 million 2013 29. 9 million.
 rent expense 2008 2007 2006 $ 41. 4 million 37. 1 million $ 31. 1 million.
.
 property liability 2008 suspended marketing distribution.
 update labeling surgical technique training program.
 liability lawsuits claims asserted.
 pending additional.
 provision $ 47. 5 million third quarter 2008.
 increased provision $ 21. 5 million fourth quarter 2008.
provision limited revisions two years surgery july 2008.
 parameters data cup loosenings surgical technique likely.
 claims outside parameters managed reflected standard product liability accruals.
 february 15 2005 howmedica osteonics.
 filed action against us unrelated party united court new jersey infringement.
 patent nos.
 6174934 6372814 6818020.
 june 13 2007 court granted summary judgment invalidity.
.
.
 august 19 2008 court granted summary judgment non- infringement.
.
 6818020 claims five.
 defenses infringement valid meritorious defend lawsuit.
 subject product liability claims lawsuits ordinary business insurance self- insured retention limits.
 accruals product liability current historical settlement information.
 outcome liabilities financial position cash flows.
investigations march 2005.
 department justice.
 attorney office newark jersey commenced investigation orthopaedic companies consulting contracts professional service agreements remuneration orthopaedic surgeons.
 september 27 2007 settlement government claims.
.
.
 department justice inspector general department health human services.
 deferred prosecution agreement.
 attorney office new jersey.
 corporate integrity agreement.
 wrongdoing guilty criminal charges pay fines.
 settled civil administrative claims settlement payment.
 government $ 169. 5 million.
.
 attorney filed criminal complaint.
 court new jersey conspiracy violations anti-kickback statute.
 2002 2006.
 deferred prosecution complaint 18-month term.
.
 dismissal.
 oversight federally-appointed monitor.
cia term five years agreed continue enhanced corporate compliance program promote compliance federal healthcare program.
 2 0 0 8 1 consolidated financial statements job c48761 pcn 060000000|00012|02/24/2009 06:10 valid color|