part iii item 10.
 directors executive officers corporate governance part i 201celection directors governance 16 beneficial ownership reporting compliance proxy statement 2016 annual meeting.
 filed 120 days year.
 executive officers part i item 1.
.
 item 11.
 executive compensation 201ccompensation discussion analysis committee report proxy statement 2016 annual meeting.
 item 12.
 security ownership beneficial owners management stockholder matters ownership proxy statement 2016 annual meeting.
 table december 31  2015 equity plans plan category number securities issued outstanding options warrants rights weighted-average exercise price number securities future issuance equity compensation plans excluding plans 1442912. 4446967 item 13.
relationships transactions director independence 13 see transactions governance proxy statement 2016 annual meeting.
 14.
 accounting fees services 201caudit non-audit fees 201caudit committee pre-approval procedures proxy statement 2016 annual meeting.
 plan category issued options warrants rights weighted-averageexercise price issuance compensationplans
 equity compensation plans security holders 1442912 $.
 part iii item 10.
 directors executive officers corporate governance 201celection directors 201cnominees election board governance 16 beneficial ownership reporting compliance proxy statement 2016 annual meeting.
 filed 120 days close year.
 executive officers part i item 1.
.
 item 11.
compensation 11 201ccompensation discussion analysis committee report compensation proxy statement 2016 annual meeting.
 item 12.
 security ownership beneficial owners management stockholder matters proxy statement 2016 annual meeting.
 table december 31 2015 equity plans plan category securities issued options warrants rights weighted-average exercise price securities future issuance plans excluding 1442912 $ 86. 98 4446967 item 13.
 relationships transactions director independence transactions governance proxy statement 2016 annual meeting.
 item 14.
 accounting fees services 201caudit non-audit fees committee pre-approval procedures proxy statement 2016 annual meeting.


guaranteed company guarantees joint venture partners guarantee table.
 non-recourse mortgage debt recourse borrower defaults limited value property collateralized.
 against other assets except exceptions loan documents footnote 7 financial statements.
 investments include joint ventures ownership interest properties total recourse mortgage encumbered properties average interest.
 ownership non recourse mortgage average interest rate average term
 15. 0%. 0 % 10573 $ 920. 5. 53%. 53 % 23.
 50. 0%. 0 % 9307 $ 642. 4. 29%. 29 %.
 48. 6%. 6 % 11519 $ 866. 5. 04%. 04 % 61.
 50. 1%. 1 % $ 144. 5. 52%. 52 % 22.
kimstone 33. 3%. 39 5595 $ 704. 45%. %
 55. 0%. % 2425 $ 112. 1 5. 05%.
 joint ventures prudential real estate investors.
 real estate investment trust.
 institutional investors.
 big shopping centers israeli public company.
 ventures blackstone.
 canadian pension plan investment board.
 february 2 2015 purchased remaining 66. 7%. interest 39-property kimstone portfolio purchase price $ 1. 4 billion $ 638. 0 million mortgage debt.
 unconsolidated real estate joint ventures varying structures.
 non-recourse mortgage loans $ 1. 2 billion.
 debt $ 4. 6 billion share $ 1. 8 billion.
 loans maturities one month to 19 years interest rates 1. 92%.92 %. 39%.
 $ 525. 7 million loan 2015 share $ 206. million.
 loans repaid cash debt refinancing capital contributions footnote 7.


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completed construction facilities oregon 2014 process technology.
 completed large-scale building arizona 2013.
 oregon facilities not use reserving buildings capacity future technologies.
 construction equipment installation.
 massachusetts facility last 200mm wafers ceased production q1 2015.
. wafer fabrication facilities ireland israel china.
 transitioned 14nm process technology manufacturing 2016.
 2016 facility dalian manufacturing capacity next-generation.
 assembly test facilities malaysia vietnam.
 sales marketing offices worldwide concentrations customers.
 facilities suitable adequate purposes productive capacity plans.
 allocate assets operating segment.
 201cnote 26 segments.
.
 25 contingencies.
.
 safety disclosures applicable.


transfer agent registrar common stock computershare shareowner services llc 480 washington boulevard 29th floor jersey city new jersey 877 unregistered securities.
 repurchase equity purchases october 1 to december 31 2015.
 shares purchased average price paid plans value.
 average price value
 october 1 - 31 2140511 $. 54 2139507 227368014
 november 1 - 30 1126378. 201557625
 december 1 - 31 1881992. 97 1872650 $ 158553178
 5148881 $ 21. 96 5136758
 shares common stock $ 0. 10 per share withheld employee stock-based compensation plans tax withholding obligations vesting restricted shares.
repurchased 1004 october 1777 november 9342 december 2015.
 average price per share three-month period calculated tax withholding obligations paid shares stock repurchase program note 5 withheld acquired.
 february 2015 board authorized share repurchase program $ 300. 0 million common stock.
 february 12 2016 board approved new repurchase program $ 300. 0 million common stock.
 new authorization addition 2015 program.
 no expiration date.


2022 volatility interest capitalization rates capital market conditions loss of hedge accounting treatment for interest rate swaps good credit interest rate swap providers price volatility dislocations liquidity disruptions financial markets impact financing effect rating agency actions on cost new debt financing decline in value real estate collateral for mortgage obligations change in mortgage financing market single-family housing competitive satisfy rules status reit federal income tax operating partnership taxable reit subsidiaries inability attract retain qualified personnel cyber liability privacy environmental contamination adverse tax changes legal proceedings class action lawsuit compliance costs laws access for disabled persons other risks in annual report 10-k 1a.
 risk factors reports.
 new factors business.
 law no obligation to update revise forward-looking statements annual report events after.
.
.
maa multifamily self real estate investment trust.
 own operate acquire develop apartment communities southeast southwest mid-atlantic united states.
 ownership apartment commercial properties 17 states district columbia.
 multifamily
 unconsolidated
 commercial properties.
 commercial space multifamily communities 615000 square feet leasable space.
 business operating partnership.
 sole general partner 113844267 units 96. 5%. partnership interest.
 1993.
 2508 full time employees 44 part-time.


schedule future minimum rental payments long-term leases october 29 2011.
 2012 17590
 2013 12724
 2014 6951
 2015 5649
 2016 3669
 19472
 $ 66055
.
 commitments contingencies business claims charges contractual patents trademarks personal injury environmental product liability insurance coverage employment disputes.
 assurance.
 matters financial position cash flows.
.
 retirement plans savings retirement plans employees.
 defined contribution plan.
 employees.
 contributions 5% compensation.
 contributes pre-tax contribution 3% 3 compensation.
 expense plan.
 $ 21. 9 million 2011 $ 20. 5 million 2010 $ 21. 5 million 2009.
 defined benefit pension retirement plans non.
 employees.
 total expense.
 $ 21. 4 million 2011.million 2010. million 2009.
.
 funding policy foreign pension plans requirements.
 assets.
.
 equity securities bonds property cash.
 obligations measured october 29 2011 30 2010.
.
 financial statements


future pension benefit payments ten years millions.
 2009 14. 9
 2010 15. 9
 2011 16.
 2012 19.
 2013 21.
 2014 2018 142.
 retirement healthcare acquired obligations acquisition.
 provides medical coverage former employees retirement.
 eligibility limited ten or more years service 55 or older december 31 1998 hired before 2005 after 55 years service.
 liabilities $ 1. 2 million $ 1. 3 million  acquisition december 31  2008.
 contribute 25 plans union-.
 acquired responsibility contributions.
 22% ( 22 % ) current employees plans.
 provide retirement benefits service.
.
 managed board trustees unions.
 not represented.
 financial information plans may underfunded.
pension protection act enacted august 2006 requires underfunded pension plans improve funding ratios underfunding.
 until trustees develop improvement determine assessments.
 impact financial position results operations cash flows.
 current law multi-employer benefit plans termination voluntary withdrawal mass withdrawal under-funded pension payments unfunded vested liabilities.
 possible mass withdrawal.
 adjustments financial condition results operations cash flows.
 pension expense multi-employer plans $ 21. 8 million  $ 18. 9 million $ 17. 3 million years december 31 2008 2007 2006.
 republic services.
 subsidiaries financial statements


income expense items.
 december 31 millions 2015 2014 2013
 interest expense $ -2702 ( 2702 -2617 ( 2617 $ -2574 ( 2574
 investment income 81 296 576
 equity -325 ( 325 ) -86 ( 86
 income 320 -215 ( 215 -364 ( 364
 $ ( 2626 ) $ -2439 ( 2439 -2448 ( 2448 )
 interest expense increased 2015 debt $ 47 million interest redemption $ 750 million. notes 2015 $ 1. billion. notes 2016.
 expense increased interest rate derivative instruments.
 $ 154 million gain sale arris group common stock.
 $ 443 million gain clearwire corporation 2013.
 note 7 statements.
 twcc holding.
 impairment charges.
recorded expenses $ 333 million 2015 nbcuniversal 2019s share charges.
 change due increase losses hulu driven higher programming marketing costs.
 2015 2014 recognized losses $ 106 million $ 20 million related investment hulu.
 change net income due $ 142 million equity losses 2013.
 2013 agreement capital contributions $ 247 million hulu.
 first capital contribution 2011 began equity method accounting.
 change hulu 2019s losses transaction 2013.
 2015 gains $ 335 million sales business invest $ 240 million settlement liability general electric company acquisition nbcuniversal $ 43 million equity investment.
 offset $ 236 million expenses fair value adjustments contractual obligation.
 note 11 financial statements.
income 2014 $ 27 million at&t broadband 2002 offset 208 million expenses 2015 report


visa inc.
 financial statements 2014 september 30 2008 volume support incentives agreements sales volume increase acceptance payment products.
 agreements one to thirteen years provide card issuance marketing program support performance requirements.
 encourage business increase visa-branded payment volume costs brand awareness.
 payments obligations included balance sheets.
 obligation amortized revenue revenues earned estimate performance.
 agreements may limit incentive payments.
 higher payments volumes potential exposure agreements estimated september 30 2008 fiscal millions volume support incentives.
 1088
 2010 1105
 2011
 2012 798
 2013
 $ 4944
 amounts agreements may estimates.
 increases incentive payments driven by increased transaction volume estimate financial condition cash flows.
 indemnification framework agreement.
visa europe indemnifies.
 claims member banks.
 claims. financial institutions.
 probability loss.
 estimated maximum liability insignificant no liability accrued.
 information see note 4 2014visa 5 2014retrospective responsibility plan 11 2014debt 13 2014settlement guarantee management 23 2014legal matters.


capitalized stock-based compensation costs unrecognized compensation expense unvested rsus.
 2019 15166
 2020 9715
 2021 6315
 2022 3458
 2023
 unrecognized 34804
 expense different forfeitures.


negative covenants default unsecured financing limitations consolidations mergers sales.
 maximum leverage ratio 3. 0 to 1. 0 minimum interest coverage ratio 3. 5 to 1. 0.
 below investment grade credit rating restrictions investments dividends stock repurchases.
 compliance covenants senior credit facility december 31  2007.
 commitments subject fees facility utilization fee.
 rated a- standard 2019s ratings not moody.
 uncommitted credit facilities $ 70. 4 million.
 cash flows borrowings working capital capital expenditure debt service needs.
 earnings flows additional capital.
 third parties future payments.
 obligations 2008.
 long-term debt $ 104.
 operating leases 134.
 purchase obligations.
 long-term income taxes payable 137.53. 9 25. 4
 long-term liabilities 191. 47. 17. 127.
 contractual obligations $ 591. $ 58. $ 156. $ 203. $ 172.
 obligations $ 591. accounting estimates financial results accounting policies methods.
 management judgment.
 excess inventory instruments determine inventory carrying cost.
 instruments excess supply.
 reserves adjust inventory instruments realizable value.
 evaluate stock levels patterns demand products systems.
 determination work-in-progress inventory recorded.
 obsolete discontinued items.
 evaluates changes valuation reserves market conditions competitive offerings.
 estimate tax expense liabilities assets taxable jurisdiction.
 deferred tax assets future taxable income.
 evaluate deferred tax assets provide valuation allowances deferred tax benefit.
 federal income taxes income foreign subsidiaries.
operate taxing jurisdictions.
 subject to regulatory review audit require time.
 information reasoned judgments tax expense liabilities reserves.
 provisions for income taxes all periods jurisdictions.
 commitments contingencies accruals for product liability claims established counsel based current historical settlement information.
 use actuarial model appropriate level accruals.
 historical patterns claim loss development analyzed applied to loss estimates.
 amounts established equate less than 5 percent total liabilities represent best estimate ultimate costs contingencies.
 evaluate carrying value annually.
.
 significant assumptions required estimate fair value goodwill assets future cash flows.
 valuation measurements use unobservable inputs financial accounting standards.
.
 changes record impairment charges.
 share-based payment account for expense fair value.


redeemable securities subsidiary trusts tier 1 capital $ 23. 899 billion at december 31 2008 $ 23. 594 billion 2007.
 citigroup issue new securities.
 frb issued rule april 11 2005 1 capital stricter quantitative limits clearer qualitative standards.
 five-year transition securities 1 capital limited 15% 15 % capital deferred tax.
 2 capital.
 citigroup had 11. 8%. against limit.
 limits march 31 2009.
 permits additional securities equity units tier 1 capital 25% 15% 15 limit.
 december 31 2008 citigroup. 1%. against limit.
 frb granted interim capital relief adopting sfas 158 2008 2007.
 frb propose amendments risk-based capital guidelines reporting instructions.
affect capital ratios risk-weighted assets.
 citigroup depository institutions subsidiary institutions united states subject risk-based capital guidelines federal bank regulatory agencies similar.
 capitalized tier 1 capital ratio 6% total ratio 10% leverage ratio 5% not subject regulatory directive higher capital levels.
 december 31 2008 subsidiary depository institutions capitalized including primary institution.
 capital ratios regulatory guidelines billions year end 2008 2007.
 1 capital $ 71. $ 82.
 total capital 108.
 1 capital ratio 9. 94%. 98%.
 total capital ratio 15.
 leverage ratio.
. capital assets.
.
 net loss 2008 $ 6. 2 billion.
.
 received contributions from parent company $ 6. 1 billion.
.
additional notes 2008.
 citicorp holdings.
 outstanding 2008 2007 citibank. 2 capital $ 28. billion.
 citibank.
 received additional $ 14. billion capital contribution 2009.
 not reflected table.
 events 2008 citigroup future events citibank.


united parcel service.
 subsidiaries financial statements class b common stock quarterly.
 employees purchased. 8 million shares $ 64. 66. $ 64. 54 per share 2007 2006 2005.
 compensation cost 2019 purchase rights discounted stock plan black-scholes option pricing model.
 weighted average assumptions fair value.
 dividend yield. 13%. 79%. 62%.
 risk-free interest rate. 60%. 59%. 84%.
.
 volatility. 26%. 92% 46%.
 average fair value purchase rights $ 9. 80
 10% discount market price.
 volatilities historical price publicly-traded b shares.
 dividend yield historical dividend yields.
 risk-free interest rate.
 treasury securities option.
 three month option period purchase rights.
.
 operations segments..
 domestic international package supply chain freight.
 business regional operations.
 operations managers for domestic export operations.
.
 delivery letters documents packages.
 200 countries territories outside.
 international package asia americas.
 supply chain freight forwarding logistics ups freight business units.
 forwarding logistics 175 countries territories supply chain design management freight distribution customs brokerage mail consulting services.
 ups freight ltl services north america.
 business units mail boxes.
.
 capital.


.
 pre-tax non-cash impairments mineral rights real estate not included income.
 liquidity capital resources january 29 2018 agreement acquire shares kapstone $ 35. per share $ 1. 36 billion net debt total value $ 4. 9 billion.
 march 6 2018 issued $ 600. million. senior notes due 2025 $. million. notes 2028 unregistered offering securities act 1933.
 march 7 2018 delayed draw credit facilities $ 3. 8 billion unsecured loans.
 november 2 2018 acquisition.
 proceeds repay indebtedness fees expenses.
 working capital capital expenditures mergers acquisitions investments restructuring dividends stock repurchases net cash borrowings sales agreement sale property equipment issuance debt equity securities.
.
financial statements.
 funding domestic operations liquidity cash equivalents borrowings credit facilities.
 foreign cash equivalents not key liquidity.
 30 2018 $ 3. 2 billion availability credit facilities revolving credit facility matures july 1 2022.
 liquidity working capital purposes acquisitions dividends stock repurchases.
 restrictive covenants govern availability.
.
 $ 104. 9 million outstanding letters credit cash equivalents $ 636. 8 million $ 298. 1 million.
 cash equivalents kapstone acquisition.
 20% cash equivalents held outside.
 total debt $ 6415. 2 million $ 740. 7 million current.
 debt $ 6554. 8 million $ 608. 7 million.
 cash flow.
 2018 2017 2016
 net cash operating activities $ 2420. $ 1900.1688.
 investing -1298. 9 1298. -1285. 8 1285. -1351. 4 1351.
 financing -755. 755. -655. 4. -231. 231.
 2018 increased $ 520. million 2017 higher earnings lower taxes.
 increased $ 212. million 2016 $ 111. 6 million increase cash after-tax cash land monetization.


.
 financial statements 2014.
 price stock purchased plan 85% fair market value common stock first last day offering period lower.
 july 2000.
 purchase plan annual increases shares 2001.
 304714 128721 64674 shares issued 2000 stock plan 2003 2002 2001.
 deferred stock compensation sales july 25 2000 compensation $ 17. 7 million differ exercise purchase price fair value common stock estimated management.
 compensation stockholders equity amortized vesting period options stock.
 december 28 2003 amortization deferred stock compensation $ 2. 5 million.
 reserved future issuance shares future 2000 stock plan 2001 declared dividend one preferred share purchase right each outstanding share common stock.
 dividend payable may 14  2001 stockholders.
right entitles holder to purchase company unit share junior preferred stock at price $ 100 per unit.
 rights exercisable if group acquires ownership 15% common stock or announces offer.
 right purchase shares market value two times exercise price.
 company acquired in merger after 15% right purchase price shares market value two times exercise price.
 board directors redeem rights at $ 0. 01 per right before ownership 15%.
 rights expire may 14, 2011 unless extended or rights earlier redeemed or exchanged.
 2000 stock plan
.
.
 price stock purchased under plan equal to 85% fair market value common stock on first or last day offering period.
 initial offering period commenced july 2000.
 purchase plan provides annual increases of shares beginning with fiscal 2001.
304714 128721 64674 shares issued 2000 employee stock purchase plan 2003 2002 2001.
 deferred stock compensation inception stock options sales stock july 25 2000 recorded deferred stock compensation $ 17. 7 million differ exercise price fair value common stock.
 deferred compensation equity amortized vesting period options stock.
 year december 28 2003 recorded amortization deferred stock compensation expense $ 2. 5 million.
 shares reserved future issuance 2000 may 3 2001 declared dividend one preferred share purchase right each share common stock.
 payable may 14 , 2001 stockholders.
 right entitles purchase one preferred stock $ 100 per unit.
 rights exercisable if acquires ownership 15% common stock or announces offer.
person group acquires 15% or common stock company each right purchase shares market value two times exercise price.
 company acquired in merger after 15% common stock each right purchase price shares market value two times.
 board directors redeem rights $ 0. 01 per right before ownership 15% common stock.
 rights expire may 14 , 2011 unless extended or earlier redeemed or exchanged.


last-in first-out method continental.
 valued.
 approximates replacement cost.
 lower.
.
 december 31.
 finished products $ 988. $ 1211.
 process 2628. 2697
 raw materials supplies 506. 488
 replacement cost 4122. 4397.
 lifo cost.
 4111. 4458.
 inventories valued lifo method $ 1. 57 billion $ 1. 56 billion total inventories december 31 2018 2017.
 credit risk trade receivables interest- bearing investments.
 wholesale distributors life-science products receivables collateral not required.
 mitigate risk credit-review procedures insurance.
 portion cash major financial institutions.
 monitor expect meet obligations.
 investments corporate debt securities.
 credit exposure institution.
exposed to credit losses nonperformance counterparties risk-management expect high credit ratings.
 consider liquid investments three months or less cash equivalents.
 cost approximates fair value.
 equity investments accounted three methods investments accounted equity method earnings losses reported other-net expense.
 measure at cost impairment.
 change value recorded.
 public equity investments measured carried fair value.
.
 review equity investments for impairment.
 derivative activities initiated corporate risk-management policies offset losses gains assets liabilities transactions.
 reviews correlation effectiveness derivatives quarterly.


.
 contractual obligations company contracts third parties future payments.
 table contractual obligations 2006 2008 2010.
 debt obligations $. 5 $ 27. $ 449. $ 175. 2013
 operating leases 103. 23. 34. 17. 27.
 purchase obligations 16. 15.
 long-term liabilities 420. 9 135. 30. 254.
 contractual obligations $ 1191. $ 66. $ 619. $ 223. $ 282.
 accounting estimates financial results affected by income taxes accounting policies methods.
.
 accounting policies management commitments contingencies 2013 accruals judgment.
 product liability claims excess inventory instruments legal counsel determine balance sheet date settlement inventory unsaleable fees.
 carrying cost.
company actuarial model instruments level excess product liability claims.
 loss supply.
 reserves adjust development analyzed inventory instruments net realizable value.
 loss estimates level reserves actuarial model.
 evaluates stock levels historical ultimate costs demand products contingencies.
 instrument systems.
 basis goodwill intangible assets determination same all inventory evaluates carrying value goodwill indefinite life instrument items work-in-progress intangible assets annually.
.
 evaluates carrying value written off.
 changes finite life intangible assets valuation reserves market conditions recoverable.
.
 income taxes estimates income tax value of goodwill intangible assets income tax liabilities future cash flows.
.
 deferred tax assets changes ability record impairment charges.
 future taxable income.
company evaluates deferred tax assets accounting pronouncements provides valuation allowances deferred tax note 2 financial statements realized.
 federal income taxes item 8.
 income foreign subsidiaries remitted.
 company operates taxing jurisdictions.
 subject regulatory review audit time.
 information makes judgments tax expense liabilities reserves.


loan activity.
 loans hotels.
 $ 35 million 2018 $ 94 million 2017.
 $ 131 million senior loans $ 149 million 2017.
.
 outflows $ 72 million 2018 $ 62 million 2017 $ 13 million 2016 joint ventures.
.
 increased $ 1109 million 2018 $ 9347 million $ 8238 million 2017 series x y z aa notes offset s notes $ 330 million commercial paper $ 126 million.
.
 long-term debt.
 diversifying financing sources optimizing debt reducing working capital.
 interest rate 3. percent maturity 4. years.
 fixed-rate debt total debt. to 1.
.
.
 purchased. million shares common stock 2018 $ 130. 2017. 8. 2016 $ 71. per
.7 million shares repurchase february 15 2019 increased common stock repurchase authorization 25 million shares.
 quarter 2018 purchases equity.
 dividends.
 board declared quarterly cash dividends $ 0. 33 per share february 9 paid march 30 $ 0. 41 per share may 4 paid $ 0. 41 per share august 9 paid september 28 $ 0. 41 per share november 8 paid december 31.
 cash dividend $ 0. 41 per share february 15 2019 payable march 29.
 summarizes year-end 2018:.
 less year 1-3 years 3-5 years after5 years
 debt $ 10483 4392 2054 2963
 capital lease obligations
 leases primary obligor 1295
purchase obligations 286 153 116 17 2014
 noncurrent liabilities 136 28 20
 contractual obligations $ 13208 1414 4877 2409 4508
 principal interest payments.
 transition tax $ 507 million 2017 tax act.
 unrecognized tax benefits-end 2018 $ million.
 commitments.
 minimal impact income cash flow.


blackrock cash investment administration securities lending performance technology risk management services distribution fees.
 cash operating expense interest taxes dividends repurchases expenditures co-investments seed investments.
 statements part ii 8.
 include fees securities lending performance fees offset operating expenses-end incentive compensation.
 outflows 2017 $ 517 million $ 497 million investment purchases $ 155 million property equipment $ 73 million first reserve $ 29 million cachematrix $ 205 million proceeds sales maturities.
 outflows financing $ 3094 million $ 1. 4 billion share repurchases 1. billion $ 321 million employee tax withholdings $ 1. 7 billion dividend $ 700 million repayments borrowings $ 697 million.
 manages financial liquidity.
liquidity resources december 31 2017 2016 millions cash equivalents $ 6894 $ 6091 consolidated 53.
 2017 2016
 $ 6894 $ 6091
 consolidated
 liquidity resources $ 10831 $ 10038
 percentage cash equivalents.
 subsidiaries 40% 40 50% 50 % 2017 2016.
.
 access cash operating activities.
 reduction year-end incentive compensation accruals $ 1. 5 billion $. 3 billion 2017 2016.
 liquidity resources increased $ 793 million 2017 cash flows operating offset 2016 incentive awards share repurchases $ 1. 4 billion dividend payments $ 1. 7 billion.
 $ 3154 million investments illiquid convertible cash.
.
 repurchased. million common shares $ 1. billion 2017.
december 31 2017 6. 4 million shares authorized.
.
 company capital subsidiaries retaining cash investments.
 subsidiaries cash.
 transfers adverse tax consequences.
 blackrock institutional trust company.
 national bank client deposits powers limited trust fiduciary activities.
 provides investment management services securities lending clients.
 subject regulatory capital liquid asset requirements comptroller.
 december 31 2017 2016 maintain $ 1. 8 billion $ 1. 4 billion net capital subsidiaries.
 regulatory net capital requirements.
 undistributed earnings foreign subsidiaries.
 2017 tax act repatriation tax provisional.
 income taxes earnings.
 reinvested foreign operations.
 capital management plans 2018.
 2017 credit facility.
 commitment $ 4.amended april 2017 maturity 2022 credit facility.
 permits request additional $ 1. billion borrowing capacity approval increasing size amount $ 5. billion.
 interest borrowings london interbank rate spread.


united parcel service.
 financial condition liquidity summary cash.
 income $ 807 $ 3804 $ 3338
 non-cash activities 7301 4505 4398
 pension postretirement plan contributions -1436 -3240
 income tax receivables payables -319
 working capital noncurrent assets liabilities -148 -340
 -107
 net cash $ 7216 $ 7073 $ 3835
 depreciation amortization gains losses exchange deferred income taxes uncollectible accounts pension postretirement benefit stock compensation impairment charges non.
 cash 2010 2012.
 impacted lower contributions defined benefit pension postretirement plans offset working capital growth.
 cash flows income tax receivables payables discretionary pension contributions.
contributions company-sponsored pension plans varied minimum funding requirements.
 2012 $ 355 million pension.
 2011 $ 1. 2 billion contribution 2011 requirements $ 440 million 2011.
 2010 $ 2. 0 billion discretionary contributions retirement pension plans $ 980 million required ibt.
 remaining contributions 2010 2012 due international pension plans.
 postretirement medical benefit plans.
 minimum funding requirements ups ibt retirement plans.
 december 31 2012 worldwide holdings cash $ 7. 327 billion.
 $ 4. 211 billion european subsidiaries acquisition tnt.
.
.
 50%-60% remaining cash equivalents foreign subsidiaries.
.
 fluctuates receipts.
 united states primary source domestic operating needs capital expenditures share repurchases dividend payments.
untaxed earnings cash foreign subsidiaries subject tax repatriated dividends not all international cash balances dividend returned.
 indefinitely reinvested no accrual taxes.


financial condition 2008 sales top five customers 45% net sales.
 backlog $ 2. 3 billion december 31 2008 $ 2. 6 billion 2007.
 digital video customers increased purchases products demand digital entertainment ip hd/dvr devices.
 february 2008 acquired assets digital cable set-top dahua digital technology. cable set-tops.
 acquisition position cable market.
 mobility solutions designs manufactures sells installs services analog digital two-way radios wireless lan security products voice data communications wireless broadband solutions government public safety agencies retail energy utilities transportation manufacturing healthcare commercial customers.
 2009 net sales 32% ( 32 % consolidated net sales compared 27% 27 % 2008 21% 21 % 2007.
.
millions years 2009 2008 2007
 segment net sales $ 7008 8093 7729 13 % 5%
 operating earnings 1057 1496 1213 29 23%
 results 20142009 net sales $ 7. 0 billion 13% 13 % $ 8. 1 billion 2008.
 21% % decrease commercial enterprise 10% government public safety.
 regions.
 emea north america latin america higher asia.
 sales lower north america emea latin america higher asia earnings $ 1. 1 billion 2009 decrease 29% % $ 1. 5 billion 2008.
 gross margin 13% decrease unfavorable product mix.
 reorganization charges higher employee severance costs.
 offset decreased sg&a expenses r&d expenditures cost-reduction initiatives.
 gross margin decreased r&d expenditures sg&a expenses increased.
 sales north america 2019s business 58% 2009 57% 57 % 2008.
 regional shift 16% decline outside north america 12% 12 % decline.
 backlog $ 2. 4 billion december 2009 2008.
 emphasis mission-critical communication homeland security solutions.
 innovation mototrbo line apx fffd family.
 affected budgets demand large-scale mission critical communications systems.
 wins globe city statewide communications systems united states projects tetra systems middle east


pickup 1100 grocery omni channel.
.
 digital content services.
 merchandise.
.
 three merchandise units ecommerce websites.
 grocery meat produce natural organics deli bakery dairy frozen foods alcoholic nonalcoholic beverages floral dry grocery health beauty aids baby products household chemicals paper goods pet supplies health wellness pharmacy optical services clinical services over-the-counter drugs medical products general merchandise entertainment. electronics hardlines. apparel. shoes jewelry accessories home/seasonal. furnishings housewares appliances bedding decor toys fabrics crafts merchandise.
.
 fuel financial services money orders prepaid cards wire transfers check cashing bill payment.
services less than 1% 1 % annual net sales.
 brand name merchandise portion walmart.
 market private-label brands including "adventure force glory value connection boundaries trail's choice balance's kitty valley sky celebrate nation. markets licensed brands "better homes gardens "farberware "swisstech. percentage strategic merchandise unit net sales walmart. 2018 2017 2016.
 strategic merchandise units 2018 2017 2016
 grocery 56% ( 56 % )
 health wellness 11% ( 11 %
 general merchandise 33% ( 33 % )
 total 100% ( 100 % )
 revisions categorization strategic merchandise units.
 previous presentation adjusted comparability.
.
 supercenters discount stores markets open 24 hours.
 payment methods accepted ecommerce websites mobile commerce applications.
.
 walmart. business seasonal due events national holidays weather patterns.
 highest sales volume income fiscal quarter january.
.
.
 with physical retailers wholesale supermarkets hypermarkets supercenter digital retailers catalog businesses.
 for new relocated retail units.
 develop open operate units right locations deliver customer-centric omni-channel experience competitive position.
 programs competitive pressures.
 pricing philosophy low cost control expenses cost savings


property strategy investment in industrial properties markets on-campus hospital medical properties.
 evaluate development acquisition opportunities market outlook economic conditions supply growth potential.
 future investments identifying acquisition development opportunities access liquidity issuances debt equity securities generating cash flow disposing properties.
 leasing/capital tenant improvements lease-related costs first generation expenditures.
 "development real estate investments lease-related costs deferred leasing costs. construction building shell site improvements.
 tenant improvements leasing costs rental space second generation expenditures.
 building improvements second generation expenditures.
 liquidity second generation leasing/capital expenditures.
 table summarizes second generation capital expenditures by other deferred leasing costs.
 2016 2015 2014

 generation tenant improvements $ 24622 $ 28681 $ 51699
 leasing costs 27029 24471 37898
 building improvements 7698 9224
 capital expenditures $ 59349 $ 61900 98821
 real estate investments $ 401442 $ 370466 446722
 deferred leasing costs $ $ 30790 31503
 expenditures lower 2016 2015 office properties intensive.
 wholly owned properties cost $ 713. 1 million 2016 $ 599. million $ 470. 2 million 2015 2014.
 expenditures.
 capitalized $ 24. 21. 7 million 23. 9 million leasing.
 $ 25. 9 million $ 23. 8 million 28. million.
 costs 33. 5%. 29. 4%. overhead costs.
discussion capitalization overhead costs comparisons expenses accounting policies.


.
 methods estimated value ipr&d acquired.
 utilized method probability weighting future net cash sales revenues costs.
 market size patent protection historical pricing industry trends.
 discounted present value rate.
 analysis project independently.
.
 acquired ipr&d assets $ 4. 71 billion $ 340. 5 million 2008 2007 expensed alternative future use.
 ongoing activities not material research development expenses.
 products development.
 ipr&d $ 122. million $ 405. million 2008 2007 charge income.
 shares systems.
 biopharma oncology care total purchase price $ 6. 5 billion borrowings.
 combination targeted therapies oncolytic agents clinical development.
 expands bio- technology capabilities.
 accounted business combination purchase goodwill $ 419. 5 million.
goodwill deductible tax.
 determining fair values assets.
 purchase price allocated value assets acquired liabilities assumed acquisition.
 determination no one year from acquisition.
 differences nancial results.
 estimated fair value november 24 2008.
 cash short-term investments $ 982.
 inventories 136.
 technology 1057.
 goodwill 419.
 property equipment 339.
 debt -600.
 deferred taxes -315.
 income -127.
 assets liabilities -72.
-process research development 4685.
 purchase price $ 6506.
 asset amortized through 2023.
 2018.
 estimated fair value ipr&d oncology-related products $ 1. 33 billion extensions.
 81 percent remaining value two compounds phase iii one ii cancers.
 discount rate 13.5 percent ipr&d $ 4. 69 billion quarter 2008 not deductible tax.
 results


edwards lifesciences financial statements.
 acquisitions disbursed harpoon medical.
 acquisition costs $. 4 million 31 2017.
 harpoon medical.
 medical beating-heart repair degenerative mitral regurgitation.
 plans add technology repair.
 acquisition business combination.
 tangible intangible assets recorded estimated fair values.
 excess purchase price over fair value goodwill.
 table fair values assets acquired liabilities assumed.
 assets.
 property equipment.
 goodwill.
.
.
 liabilities.
 deferred income taxes.
 purchase price.
 cash acquired.
 purchase price.
 goodwill.
 united segment not deductible tax.
 capitalized fair value intangible indefinite life assessed impairment.
 fair value determined income approach.
 cash flow risk-adjusted.
discount rates value ipr&d 18. to 19.
 design testing pre required prior selling product.
 risks uncertainties development include design development manufacturability success studies regulatory approvals.
 valuation assumed $ 41. 4 million additional research development expenditures prior product introduction.
 net cash inflows 2018 united states japan 2022.
 completion development research development asset amortized over estimated useful life.
 results harpoon medical.
 included consolidated financial statements.
.
.
.
 2016 agreement acquire.
 for $ 340. million potential additional $ 350. million milestone payments 10 years.


handle demand changes.
 industrial engineering techniques productivity.
 2022 fuel prices uncertainty economy fuel price projections difficult volatile fuel prices sensitive global.
 domestic demand refining capacity geopolitical events weather conditions factors.
 reduce impact fuel price earnings recovery fuel surcharge programs expand fuel conservation efforts.
 capital plan capital investments $ 3. 2 billion positive train control revised business conditions laws affect.
 capital. 2015 spend $ 250 million 2011 ptc.
 $ 1. 4 billion 2015 federal administration.
 installing new system upgrading locomotives digital data communication equipment.
 testing technology.
 financial expectations cautious economic conditions anticipate volume increase 2010.
 volume price productivity gains offset higher costs fuel labor inflation depreciation casualty costs property taxes operating ratio improvement.
 revenues.

 freight revenues $ 16069 $ 13373 $ 17118 20% 20 % 22 %
 other revenues 896 770 852 16
 $ 16965 $ 14143 $ 17970 20% 20 % 21 %
 freight revenues six commodity groups.
 vary volume revenue.
 price traffic mix fuel surcharges.
 contractual incentives volumes reduction revenues.
 revenues.
 allocate transit time expenses.
 revenues subsidiaries commuter accessorial revenues equipment services.
 obligations.
 revenues volume six commodity groups increased 2010 economic improvement.
 volume growth automotive intermodal industrial.
 pricing gains fuel surcharges increased revenues 6% improvement.
 commodity groups decreased 2009 economic weakness.
 volume declines automotive industrial


revolving credit facility $ 7. billion expiring october 17 2008.
 interest charged 90-day libor plus 15 points.
 december 31 no outstanding borrowings.
 debt instruments cross-default ratings triggers financial covenants.
 $ 3. 0 billion net worth secured indebtedness.
 notes january 2008 limitations secured indebtedness sale-leaseback transactions.
 not financial condition tests satisfied december 31 capital leases operating leases debt obligations purchase commitments liabilities.
 cash flow.
 cash outflow capital leases operating leases interest purchase commitments pension fundings.
 2008 $ 108 378 3426 329 1306
 2009 73 325 384 791 824
 2010 91 237 729 630
2011 31 166 33 379 717 69
 2012 31 116 26 377 304 859
 285  560 6919 6177 2014 334 203
 $ 619 $ 1782 10527 8026 3828 3465 562
 capital lease obligations aircraft.
 operating purchase commitments debt note 8 consolidated financial statements.
 interest fixed-rate variable rate debt 2007.
 interest rate swap agreements.
 january 2008 issuance $ 4. billion senior notes balance.
 purchase commitments aircraft engines parts.
 27 boeing 767-300er freighters 2009 2012.
 nine 747-400f 2008 2010 two 747-400bcf.
 replacement capacity future growth.
 cancelled order ten airbus a380-800 freighter.
cancellation airbus a380-800 order received cash july 2007 return deposits accrued interest.
 received credit memorandum purchase parts services airbus.
 cancellation financial liquidity.


consolidated financial statements 2014financial instruments company distributes products third-party distributors resellers education consumer commercial customers.
 collateral collateral limit credit risk.
 risk credit insurance latin america asia australia third party financing loan lease programs.
 credit-financing arrangements customer.
 recourse credit risk sharing.
 trade receivables not covered collateral flooring credit insurance outstanding distribution retail channel partners.
 no customer more 10% trade receivables september 30 2006 24 2005.
 table summarizes activity allowance doubtful accounts.
 beginning allowance balance $ 46 $ 47 $ 49
 costs expenses
 deductions
 ending balance $ 52 $ 46 47
 written off allowance net recoveries.
non-trade receivables company from manufacturing vendors sale raw material.
 purchases from suppliers.
 receivables in totaled $ 1. 6 billion $ 417 million as of september 30 2006 24 2005.
 in net sales profits until products sold end customer cost.
 derivative financial instruments uses foreign exchange risk.
 option contracts hedge future cash flows revenue cost.
 enters interest rate derivative agreements modify interest rate profile investments.
 accounting policies.
 records derivatives balance at fair value.


hologic  inc.
 financial statements purchased products.
 intangible assets amortized cash flows consistent.
 estimated $ 600 purchase price research development projects organic photoconductor coating selenium product lines.
 deferred income tax liability acquired intangible assets fair value adjustments inventory land building improvements not deductible.
 relationship aeg supplier.
 agreement.
 minimum purchase requirements pricing consistent agreements.
 acquisition r2 technology.
 13 2006.
.
 results operations included financial statements mammography/breast care business.
 develops sells computer-aided detection technology early detection breast cancer.
 purchase price $ 220600 4400 shares hologic common stock $ 205500 cash $ 6900 debt $ 5700 $ 2500 acquisition related fees expenses.
 fair value shares issue.
99-12 market price acquirer securities purchase.
.
 assets july 13 2006 $ 1200
 research development 10200
 technology 39500
 customer relationship 15700
 trade name 3300
 order backlog 800
 deferred income taxes 4400
 goodwill 145500
 estimated purchase price $ 220600
 restructure activities.
 liability $ issue.
 termination employees abandonment lease space.
 paid september 29 2007.
 reduced goodwill acquisition $ 400.
 preliminary valuation assets liabilities.
 final purchase price allocations year


debt restructurings loan concession borrower financial difficulties.
 loss mitigation include rate reductions principal forgiveness postponement amortization extensions bankruptcy discharges reaffirmation concession loss avoid foreclosure repossession.
 principal charged full principal interest potential incremental losses.
 factored estimate.
 defaults affected future economic conditions.
 loan until repaid collateral foreclosed charged.
 reserves $ million $ 580 million at december 31 2012 2011 tdr portfolio.
 table 71 summary debt restructurings millions.
.
.
.
 consumer lending $ 2318 $ 1798
 commercial lending 541 405
 tdrs 2859 2203
 nonperforming $ 1589 $ 1141
 1037 771
 credit 233 291
regulatory guidance 2012 debt restructurings $ 366 million bankruptcy reaffirmation concession liability consumer lending population.
 increased nonperforming loans $ 288 million.
 charge-offs fair value collateral less investment $ 128. 1 million.
 78% current payments december 31 2012.
 accruing loans six months performance restructured terms excluded nonperforming loans.
 credit cards small business consumer credit agreements restructured tdrs.
 loans status charged off 180 days past due.
 table loans classified tdrs change investments december 31 2012 2011.
 tdr concessions.
 principal forgiveness accrued interest.
 write down investment charge-off.
 rate reduction reduced interest rate interest deferral.
 future interest income.
 postponement/reduction scheduled amortization contractual extensions.
multiple concessions granted loan.
 principal forgiveness prioritized inclusion.
 principal forgiveness lower interest rate postponement amortization.
 rate reduction.
 interest rate reduction postponement amortization rate reduction.
 pnc financial services group.
 form 10-k


financial condition results operations capital resources growth funded cash debt financing.
 cash operations receivables borrowings cash fund debt payments march 2014 repayment $ 100. million. 85%. unsecured notes maturity interest dividends new receivables financial capital expenditures working capital restructuring activities pension plans share repurchases acquisitions.
 external funds available acceptable cost.
 february 7 2014 long-term debt commercial paper rated a3 p-2- standard poor f2 fitch.
 credit arrangements sound balance sheet financial flexibility growth acquisitions.
 assurances future financing terms debt ratings.
 consolidated balance sheets.
 2013 working capital $ 1080. 8 million increased $ 1. 0 million $ 1079. 8 million 2012.
 working capital position 2013 2012.
equivalents 217. 214.
 531. 497.
 374. 323.
 68. 62.
 434. 404.
 169. 166.
 1796. 1669.
 long-term debt -113. -5
 -155. -142.
 -446. -441. 441
 -715. 715. -589. 589.
 capital $ 1080. 8 1079.
 $ 217. 6 million 2013 $ 214. 5 million 2012.
 $ 3. 1 million increase $ 508. 8 million finance receivables 392. 6 million 24. 3 million pension plans 29. 2 million stock purchase option plan $ 8. 4 million sale property equipment.
 offset $ 651. 3 million finance receivables dividend payments $ 92. million repurchase 926000 shares common stock $ 82.million funding $ 70. 6 million capital expenditures 2013 acquisition challenger $ 38. 2 million.
 $ 217. 6 million cash equivalents 2013 $ 124. 3 million held outside united states.
 snap-on.
 funds permanently invested foreign operations working capital satisfy regulatory requirements business expansion repatriate funds.
.
 repatriation cash adverse net tax consequences.
.
 repatriation favorable net tax consequences.
 evaluates repatriate cash tax consequences.


liquidity citigroup subsidiaries include deposits collateralized financing transactions debt commercial paper trust securities purchased/wholesale funds.
 funding sources diversified across geography franchise.
 diverse retail corporate deposit base $ 774. 2 billion.
 diversified products regions two-thirds outside.
 stable low-cost source funding.
 portion deposits long-term stable core.
 qualitative quantitative assessments calculation core deposits.
 qualitative.
 deposits wholesale funding excluded core.
 quantitative analysis.
 foreign exchange sale retail banking deposit base stable.
 increases in transaction services.
 retail banking smith barney.
 offset by wholesale funding de-leveraging declines consumer banking private bank.
 citigroup subsidiaries global capital markets.
 funding activities by citigroup.issues long-term debt medium-term notes trust securities common stock citigroup funding.
 first-tier subsidiary issues commercial paper medium-term notes equity-linked credit-linked notes guaranteed by citigroup.
 debt collateralized advances federal home loan bank investment vehicles asset-backed outstandings borrowings foreign subsidiaries.
 citigroup operations with capitalization regulatory structure environment.
 attention to businesses international markets.
 citigroup borrowings diversified by geography investor instrument currency.
 from issuance.
 citigroup liquidity commercial paper programs two credit card securitization trusts.
 support trusts.
 economic downturn increased credit enhancement omni trust plans master trust.
 preserves investor sponsorship card securitization franchise.
legal limitations citigroup depository institutions extend credit pay dividends supply funds non subsidiaries.
 approval comptroller supervision required dividends exceed regulations.
 state-chartered depository institutions subject dividend limitations state law.
 risk capital leverage ratio requirements policy statements federal regulatory dividends earnings.
 citigroup receives dividends.
 not regulatory restrictions dividends.
 cgmhi declare dividends restricted capital considerations broker-dealer subsidiaries.
 balance sheet liquid assets marketable securities collateralized short financing agreements.
 monitors evaluates capital borrowing base liquidity regulatory capital requirements subsidiaries.
 non-bank subsidiaries credit facilities institutions.
 borrowings secured section 23a federal reserve act.
legal restrictions bank non-bank subsidiaries credit citigroup.
 transactions secured collateral.
 note 20 consolidated financial statements page 169.
 december 31 2008 long-term debt commercial paper citigroup cgmhi cfi subsidiaries billions citigroup company funding.
 subsidiaries long-term debt $ 192. $. $ 37.
. subsidiaries
 long-term debt $ 192. $. 37.
 commercial paper 28.
 december 31 2008 $ 67. 4 billion collateralized advances federal home loan bank.
 citigroup.
 guarantees cfi debt cgmhi securities.


2006 industrial packaging earnings improve first quarter 2005.
 price price in creases linerboard domestic boxes.
 containerboard sales volumes drop fewer shipping days growth.
 converted products stronger.
 costs wood freight energy stable 2005.
 new supply chain model efficiency cost savings.
 european container results improve market growth cost reduction contributions moroccan box plant acquisition international paper distribution.
 packaging demand pricing correlate spending economic activity.
 factors profitability raw material energy costs manufacturing efficiency product mix.
 2005 net sales $ 2. 6 bil lion flat 2004 5% higher 2003.
 operating profits declined 22% 2004 31% 2003 improved price realizations cost increases energy wood polyethylene raw materials lack-of-order downtime other costs.
.
 sales
 operating profit
board sales $ 864 million 2005 842 2004 751 2003.
 price increased energy wood polyethylene raw material costs volume lack-of-order downtime.
 mills 100000 tons downtime 65000 2004.
 restructuring manufacturing plans costs market.
 foodservice sales $ million 2005 $ 480 2004 460 2003.
 prices up 3% cup lid sales volumes 5% lower 2004 rationalization.
 profits 147% settlement lawsuit adjustment plant.
 flat price costs.
 shorewood net sales $ 691 million 2005 flat $ 687 up 665 2003.
 profits 17% above 2004 equal 2003.
 improved margins rationalization improved manufacturing cost increases foreign exchange.
 beverage packaging net sales $ 597 million 2005 $ 595 2004 589 million 2003.
sale price increased 2% 2004 higher raw material costs pressures.
 profits down 14% 2004 19% 2003 board resin costs.
 bleached board market strong sales volumes increasing folding carton cup.
 improved price realizations board foodservice beverage packaging high costs energy wood resin impact earnings.
 shorewood operations sales volume growth 2006.
 capital improvements operational excellence benefit results.
 markets diverse products services.
 demand sensitive economic conditions


charge-off based on loss experience pool.
 charge-off amounts proportionate to.
 ratio of first to second lien loans consistent represented in pools roll-rate calculations.
 variable-rate home equity lines seven or ten year draw period 20-year amortization term.
 interest only principal interest.
 risk end draw dates considered.
 balances at december 31  2013 table draw periods.
 home equity lines of credit 2013 draw millions interest.
 2016
 2017
 2019
 12910 $ 7675
 includes home equity lines credit 2014 or borrowing.
 $ 185 million $ 193 million $ 54 63 47 $ 561 million home equity lines credit with balloon payments draw periods 2014 2015 2016 2017 2018 2019.
home equity lines credit borrowers principal interest draw period less risky interest only principal interest payments.
 balances impaired loans december 31 2013 equity lines draw. terminated 3. 65%. % 30-89 days past due 5. 49%. 49 % 90 days or more past due.
 60 days past due terminate borrowing privileges not reinstated.
 continue collection/recovery processes loss mitigation loan modification tdr.
 note 5 asset quality.
 modify loans government pnc programs help avoid foreclosure.
 borrower evaluated modification government.
 pnc.
 temporary permanent modifications reduce interest rate extend term defer principal.
 temporary modifications classified tdrs.
 payment plans trial payment arrangements change classified tdrs.
 detail tdrs note 5.
temporary modification term 3 24 months loan terms reverts exit rate remaining.
 permanent modification 24 months terms original changed.
 modifications include government home program pnc.
 temporary modification borrower temporary hardship delinquent loan balance.
 delinquency illness death loss employment.
 permanent modifications borrower income payments lower amounts.
 monitor success rates delinquency status loan modification programs credit losses.
 table 42 unpaid real estate loans table 43 60 days past due six nine twelve fifteen months modification.
 pnc financial services group.
 2013 form 10-k 79


incentive compensation expense $ 8. 2 million fringe benefit costs $ 1. 4 million higher warehousing costs $ 2. million.
 corporate overhead increased $ 3. 1 million 6. 5%. 2005.
 incentive compensation expense $ 2. million costs.
 decreased $ 2. 1 million. 1%
 due $ 3. 1 million decrease disposals property plant equipment.
 higher legal expenses $. 5 million increased losses disposals storeroom items $. 4 million.
 increased $ 3. 1 million 11. 1%. higher interest expense variable rate debt.
 tax rate 35. 8%. 2%. 2005.
 lower tax rate domestic manufacturer deduction texas state tax rate.
 rates higher federal rate.
31 2005 2004 historical results operations pca 2004 2004.
 2004
 sales $ 1993. 7 $ 1890. $ 103. 6
 income operations $ 116. $ 140. 5 4 24.
 expense. 1 28. 6 29.
 before taxes 88. 110. 9.
 taxes. 4 35. 2 42. 6.
 income $ 52. 6 $ 68. 7.
 sales increased $ 103. 6 million 5. 5%. 31 2005 2004.
 sales increased prices volumes corrugated products 2004.
 volume increased 4. 2%. % 31. billion square feet 2005. 2004.
 corrugated sales volume increased 4. 6%. 6 % 2005.
 3. 0%. higher 2005 2004. 4%.
shipments-per-workday calculated corrugated products volume workdays.
 increase 2005 less workday 250 2004 251.
 containerboard sales decreased. 2%. 417000 tons 2005 475000 tons 2004.


december 31 2018 2017 2016
 statutory tax rate 19. 0%. 3%. 3 % 20. %
. income taxes. federal benefit. 4. -1 5.
 international operations -7. 3.
 nondeductible expenses 2. 3. 4
 adjustments prior year tax requirements. 9
 adjustments valuation 3. 8 -2
 tax positions.
 tax benefits compensation. 6. -8 2014
. tax reform 7. 2014
.
.
 tax 11. 7%. 7 % 36. 5%. 5 % 10. 6%. 6 %
 determines adjustment taxes international operations difference statutory tax rate foreign jurisdiction enacted rate 19. 0% 3%. 3 % 20. 0%. december 31 2018 2017 2016.
benefit company tax international operations global operations global funding tax holiday singapore.
 impact decreased 2017 2018.
 federal tax 2016-09 excess tax benefits deficiencies share transactions.
 tax reform act transition tax re-measurement.
 deferred tax assets liabilities 35% 21% withholding tax allocation tax benefit foreign tax credits.


table represents unrealized losses derivative amounts loss years ended december 31 thousands balance loss.
 contract type 2009 2008
 interest rate swaps $ 13053 $ 18874
 2013 fair value measurements uses hierarchy prioritizes inputs financial instruments.
 highest priority unadjusted quoted prices markets lowest unobservable inputs 3.
 three levels 1 2013 quoted prices active markets identical assets.
.
 2022 level 2 2013 pricing inputs prices markets or indirectly observable reporting date.
 financial instruments valued valuation methodologies.
 industry-standard time value volatility current market contractual prices.
 assumptions observable marketplace.
 2022 level 3 2013 pricing inputs include inputs less observable sources.
 internally developed methodologies management best estimate fair value.
fair value interest rate swap transactions based discounted net present value party quotes.
 changes market value recorded income ineffectiveness earnings.
 assets liabilities measured fair value based three valuation techniques.
 market approach 2013 prices cost 2013 service capacity income 2013 future amounts present amount option-pricing excess earnings models


.
 december 31 2016 cash equivalents $ 683 million debt $ 10478 million current capitalized debt.
 $ 470 million foreign entities subject.
 income taxation repatriation.
 majority deposits-in-transit daily settlement activity.
 flows twelve months operating cash capital expenditures debt service.
 quarterly dividends.
 board investment opportunities results financial condition cash requirements future prospects.
 dividends limited debt agreements.
 regular quarterly dividend $ 0. 29 per common share payable march 31  2017.
 cash flows $ 1925 million $ 1131 million $ 1165 million 2016 2015 2014.
 net cash net earnings.
 increased $ 794 million 2016 decreased $ 34 million 2015.
 increase increased net earnings.
2015 decrease cash due to $ 88 million sale check warranty contracts gaming industry lower net earnings offset by changes working capital.
 expenditures investing principal capital expenditures computer software property equipment.
 invested $ 616 million $ 415 million $ 372 million 2016 2015 2014.
 expect invest 6%-7% 2017 revenue.
 used $ 0 million $ 1720 million $ 595 million cash 2016 for acquisitions equity investments.
 note 3.
 cash sale 2015 warranty contracts gaming industry 15.
.
 debt interest lease data processing maintenance.
 10.
 table summarizes contractual obligations commitments as december 31 , 2016 millions.
 less 1 year 1-3 years 3-5 years 5 years
debt 10591 1573 2536 6150
 2829 381 706 595 1147
 leases 401
 data processing maintenance 557 242 258
 obligations
 $ 14429 1068 2712 3264 7385


entergy arkansas.
 decreased $ 92. million due higher operation maintenance expenses depreciation amortization income tax rate.
 expenses write-off $ 70. million december 2008 appeals decision base rate case.
.
 2007 income decreased $ 34. million higher operation expenses depreciation tax rate.
 offset higher net revenue.
 fuel purchased power expenses regulatory credits.
 analysis change net revenue 2008 2007.
.
 2007 revenue $ 1110.
 revenue.
 purchased power capacity.
.
.
 2008 $ 1117.
 rider revenue variance due energy efficiency rider november 2007.
 revenue operation maintenance expense no effect net income.
 increase franchise tax revenue higher retail revenues.
.
 purchased power capacity variance due lower reserve equalization expenses.
volume/weather variance weather 2007. 9%. decrease industrial wood industry small customer class.
 electricity usage decreased 333 gwh sectors.
 accounting estimates note 1 financial statements.


management replacement london interbank central banks federal reserve commissioned groups replacements libor market transac.
 transition libor alternative rates next years.
 effects inflation changes interest foreign exchange rates rising interest rates negative impacts valuation financial instruments affect financial position profitability.
 rising inflation non-interest expenses higher prices services.
 changes interest rate volatility expectations future rates impact results operations.
 business conducted curren other.
 changes foreign exchange rates.
 affect value non.
 assets revenues expenses.
 exposures fluctuations currencies monitored strategies adopted reduce impact fluctuations.
 financing non.
 assets borrowings currency currency forward contracts spot market hedging transactions.
 foreign currency translation adjustments note 15 financial statements.
 off-balance sheet arrangements contractual obligations.guarantees commitments institutional securities investment management.
 securitization.
 note 13 statements.
 indemnities 12.
 market activities. obligations cash payments.
 borrow financings interest payments time deposits operating leases purchase obligations.
 december 31 2017 payments millions 2018 2019-2020 2021-2022 $ 23870 $ 45963 $ 36649 $ 84581 $ 191063 secured 4992 3142 153 398 8685 interest 7930 5680 17031 35544 time 129 15018 operating leases 1183 938 2639 5424 purchase obligations 47327 61306 43745 104975 257353.
 note 11.
 one year.
.
 estimated future interest payments 31.
.
 interest payments time deposits.
 subsidiaries.
.
 leases note 12.
.
exclude unrecognized tax benefits future cash payments determinable note 20 financial.
 purchase obligations include consulting outsourcing computer telecommunications maintenance transmission transportation storage contracts commodities.
 obligations reflect minimum contractual obliga contracts fixed determinable.
 exclude obligations incurred reflected balance sheets.
.
 payments 2018 2019-2020 2021-2022
 borrowings1 $ 23870 $ 45963 36649 84581 191063
 securedfinancings1 4992
 contractual interest payments2 17031
 timedeposits3 12300 2481
 operating leases 664 1183 2639 5424
 purchase obligations 1619
 $ 47327 $ 61306 43745 104975 257353
management replacement london interbank central banks federal reserve commissioned groups replacements libor market transac.
 transition libor alternative rates next years.
 effects inflation changes interest foreign exchange rates rising interest rates negative impacts valuation financial instruments affect financial position profitability.
 rising inflation non-interest expenses higher prices services.
 changes interest rate volatility expectations future rates impact results operations.
 business conducted curren other.
 changes foreign exchange rates.
 affect value non.
 assets revenues expenses.
 exposures fluctuations currencies monitored strategies adopted reduce impact fluctuations.
 financing non.
 assets borrowings currency currency forward contracts spot market hedging transactions.
 foreign currency translation adjustments note 15 financial statements.
 off-balance sheet arrangements contractual obligations.guarantees commitments institutional securities investment management.
 securitization.
 note 13 statements.
 indemnities 12.
 market activities. obligations cash payments.
 borrow financings interest payments time deposits operating leases purchase obligations.
 december 31 2017 payments millions 2018 2019-2020 2021-2022 $ 23870 $ 45963 $ 36649 $ 84581 $ 191063 secured 4992 3142 153 398 8685 interest 7930 5680 17031 35544 time 129 15018 operating leases 1183 938 2639 5424 purchase obligations 47327 61306 43745 104975 257353.
 note 11.
 one year.
.
 estimated future interest payments 31.
.
 interest payments time deposits.
 subsidiaries.
.
 leases note 12.
.
exclude unrecognized tax benefits future cash payments note 20 financial.
 purchase obligations include consulting outsourcing maintenance transmission transportation storage contracts.
 obligations december 31 2017 reflect minimum obliga contracts fixed.
 exclude obligations incurred balance sheets.
 2017


aes corporation financial statements 2014 multilateral loans bilaterals multilaterals development banks institutions.
 non-recourse debt $ 708 million 2009 excluded included current long-term liabilities businesses.
 debt scheduled maturity annual maturities millions.
 2577
 2012 657
 2013 953
 2014 1839
 2015 1138
 7957
 non-recourse debt $ 15121
 31 2010 aes subsidiaries $ 432 million credit facilities construction.
 $ 893 million revolving credit lines working capital reserves business needs.
 lines borrowings letters credit.
 average interest rate borrowings. 24%. % december 31 2010.
 non-recourse debt covenants restrictions defaults financial covenants.
 subsidiary activity.
 reserves working capital limitations additional indebtedness.
covenants.
 december 31 $ 803 million $ 653 million restricted cash maintained non-recourse debt agreements cash reserves deposits.
 provisions restrict subsidiaries transfer assets parent.
 restricted assets $ 5. 4 billion december 31 2010.


cdw corporation subsidiaries financial statements deferred financing costs underwriting professional capitalized recognized in interest expense over estimated life debt instrument.
 classifies deferred financing costs direct deduction from long-term debt liability except line-of-credit arrangements presented as asset.
 interest rate cap agreements hedging exposure.
 recorded at fair value.
 agreements not cash flow hedges.
 changes in fair value recorded to interest expense.
 fair value measurements defined price sell asset transfer liability transaction market.
 fair value hierarchy established three levels.
 measurement reported determined lowest level.
 levels level 1 observable inputs quoted prices identical instruments.
2 2013 inputs based quoted prices active markets model-based valuation techniques assumptions observable assets.
 3 2013 inputs unobservable reflect management estimates assumptions.
 fair values determined model-based techniques option pricing models discounted cash flow models.
 accumulated loss adjustments stockholders equity components.
 millions years 2015 2014 2013
 $ -61. 1 61. $ -16. 6. $ -6.
 loss -61. -6.
 primary distribution channel vendors suppliers equipment manufacturers software publishers wholesale distributors.
 records revenue sales transactions title risk loss passed customer arrangement sale delivery occurred services rendered sales price fixed collectability assured.
 shipping terms specify.
 destination title risk loss passed customer.
revenues from sales hardware software licenses recognized gross selling price recorded as sales acquisition cost cost sales.
 items delivered including physical product drop-shipment electronic delivery software


supplier gasoline distillates resellers consumers midwest upper plains gulf coast southeastern united states.
 2007 refined products sales. billion gallons 1. 410 mmbpd.
 average sales price $ 86. 53 per barrel.
 refined products sales product group average sales price last three years.
 2007 2006 2005.
 gasoline 791 804
 distillates
 propane
 feedstocks special products 103
 heavy fuel oil
 asphalt
 sales price barrel $ 86.
. matching buy/sell volumes 24 77 mbpd 2006 2005.
.
 lower refined products sales volumes 2007.
.
 wholesale distribution petroleum products private marketers commercial industrial consumers spot market 69 percent refined products sales volumes 2007.
sold 49 gasoline 89 distillates.
 half propane home heating balance industrial consumers.
 propylene cumene aromatics aliphatics sulfur marketed.
 lube oils maleic anhydride slack wax extract pitch sold united states canada exported.
 asphalt midwest plains gulf coast southeastern.
 base 750 asphalt-paving contractors government entities shingle manufacturers.
 blended ethanol gasoline 15 years increased 2007.
 41 mbpd 2007 35 2006 2005.
 regulations.
 reformulated gasoline low-vapor-pressure gasoline nine states.
 biodiesel minnesota illinois kentucky.
 supplied petroleum 4400 outlets ohio michigan.
retail outlets georgia florida minnesota wisconsin north carolina tennessee virginia south carolina alabama pennsylvania texas.
 sales marathon-brand 16 percent refined product 2007.
 superamerica sells gasoline diesel fuel outlets.
 15 percent 2007.
 1636 outlets nine states petroleum 201cspeedway. revenues non-petroleum merchandise $ 2. 796 billion 2007 $ 2. 706 billion 2006.
.
 operates 59 valvoline oil outlets michigan northwest ohio.
 pilot travel centers largest operator 286 locations 37 states.
 offer diesel fuel gasoline services restaurants.
 50 percent interest in ptc.


ordinary business geologic trends economics allowed lease acreage expire may allow additional.
 production not established leases undeveloped acreage expire next three years.
 plan continue licenses or retain leases.
 leases expiring 2014 unproved property impairments recorded 2013.
 undeveloped acres expiring 2014 2015 2016
.
.
 exploratory well planned acreage 2014.
 20 percent interest aosp oil sands mining upgrading joint venture alberta.
 produces bitumen oil sands deposits athabasca upgrades synthetic crude oils vacuum gas oil.
 mining extraction assets near fort mcmurray alberta include muskeg river jackpine mines.
 capacity 255000 barrels bitumen per day.
aosp operations oil open-pit mine bitumen upgrade crude oils.
 ore mined shovel mining.
 crushers sent rotary breakers.
 combined water slurry.
 separates into sand clay bitumen froth.
 solvent added.
 washes produces clean bitumen.
 yields solvent bitumen transported scotford upgrader 300-mile.
 upgrader fort saskatchewan northeast edmonton.
 bitumen upgraded hydrotreating hydroconversion.
 blendstocks products.
 produces synthetic crude oils vacuum gas oil.
 sold affiliate-term market prices products marketplace.
 leases 159000 32000 acres.
 leases project royalties payable alberta.
 synthetic crude oil sales 2013 48 mbbld net-of-royalty production 42 mbbld.
december 2013 jackpine mine expansion project approval canadian.
 includes mining areas processing facilities infrastructure.
 conditions wildlife environment aboriginal health.
 expansion conditions debottlenecking reliability.
 alberta canada fund quest ccs 865 million dollars.
 quarter 2012 board approved project aosp partners.
 funding commenced milestones achieved.
 failure repaying funding.
 construction late 2015.
 may 2013 terminated discussions sale 20 percent interest aosp.


payables reclassified capital lease obligations.
 reported consolidated statements as debt.
 october 15  2009 capital lease agreement for 44 locomotives cost $ 100 million.
 lessor purchased 44 locomotives leased to railroad.
 obligations reported debt at december 31 , 2009.
 off-balance sheet arrangements contractual obligations commercial commitments affect financial condition.
 no trend uncertainty results operations financial condition liquidity.
 commercial obligations financings commitments customary similar corporations transportation industry.
 tables identify material obligations commitments as december 31 , 2009 payments due by december 31 contractual obligations millions dollars total 2010 2011 2012 2013 2014 2014.
 obligations 2010 2011 2013 2014 after 2014

 debt $ 12645 846 1104 985 951 7863
 operating leases 5312 576 570 488 425 352 2901
 capital lease obligations 2975 290 292 267 1623
 purchase obligations 2738  386 317 242 249 1284
 post retirement benefits 435 41
 income tax contingencies
 contractual obligations $ 24166 $ 2140 13893
 capital lease obligations $ 2061 million unamortized discount $ 110 million market value adjustments $ 15 million.
 interest $ 4763 million.
 obligations $ 914 million.
 purchase obligations locomotive maintenance contracts.
 column.
retirement medical life insurance unfunded pension plan ten years.
 no funded pension.
 future cash flows income tax contingencies reflect liability unrecognized tax benefits penalties december 31 2009.
 table.
 reflected column.


2018 annual report performance graph five-year period june 30 2018 market performance company common stock s&p 500 index peer companies.
 historic stock not future performance.
 5 year return jack henry associates. s&p 500 index peer group line graph values.
. 128. 141. 193.
. 137 171. 198 231.
. 133 164. 187.
 comparison assumes $ 100 invested june 30 2013 reinvestments dividends.
 returns calculated market capitalization peer group members.
 peer companies computer software hardware services financial institutions.
 aci worldwide. bottomline. broadridge cardtronics. convergys. corelogic. euronet. isaac. fidelity. moneygram. ss&c technologies. tyler. verifone.wex .
 dst systems. peer group acquired 2018 no longer public company.
.
 removed peer group stock performance graph.
 not deemed section 18 exchange act incorporated filing securities act 1933 except.


loss contract recorded remaining deferred revenues recognized service period termination date.
 long-term outsourcing agreements customized implementation efforts necessary set clients human resource benefit programs systems processes.
 outsourcing services direct costs implementation prior commencing deferred amortized services revenue recognized.
 deferred costs assessed recoverability revenue.
 sponsor defined benefit pension plans.
 significant plans.
. closed new entrants.
 ceased crediting future benefits. plans.
 2016 estimate pension post-retirement net benefit cost increase $ 15 million approximately $ 54 million.
 increase due to change approach measuring service interest cost.
 full yield curve approach estimation service interest cost post-retirement rates projected cash flows.
2015 estimated pension post-retirement benefit cost weighted-average discount rate yield curve.
 correlation benefit cash flows yield curve precise measurement service interest costs.
 affect benefit obligation offset actuarial loss.
 accounted estimate.
 gains losses changes value obligation plan assets due discount rate assumptions asset performance not recognized net income.
 amortized into net income benefit cost.
 unrecognized gains losses deferred amortized into compensation benefits expense pension expense average life expectancy.
.
 amortize prior service expense credits plan changes amortization.
 december 31 2015 pension plans deferred losses recognized.
 amortize unrecognized actuarial losses outside corridor 10% market-related value plan assets benefit obligation.
 incremental amortization future pension expense until fully amortized.
table discloses unrecognized actuarial gains losses estimated 2016 amortization country.
.
 unrecognized gains losses $ 1511 $ 1732 382
 amortization 10 - 32 7 28
 2016 amortization loss $ 37 $ 52
 unrecognized prior service cost december 31 2015 $ 9 million $ 46 million 7 million.
.
.
 market-related valuation return benefit cost.


2022 rugby vertical retail format aspirational lifestyle apparel accessories women.
 youthful preppy attitude.
 worldwide full-price stores image.
 800 to 38000 square feet.
 upscale street locations regional malls urban markets.
 lease stores 5 to 10 years renewal options.
 reach 191 lauren factory stores worldwide.
.
 5 10 years.
 2011 added 19 stores assumed 2 south acquisition.
 operated stores april 2 2011.
 31
 asia
 japan south korea kong philippines singapore taiwan.
 stores menswear womenswear children 2019s apparel accessories home furnishings fragrances.
 2500 to 20000 square feet average 9500 square feet outlet centers 37 states puerto.
2022 europe stores offer menswear womenswear apparel accessories home furnishings fragrances.
 2300 to 10500 square feet average 6000 square feet 11 countries major outlet centers.
 2022 asia stores menswear accessories fragrances.
 1000 to 12000 square feet average 5000 feet japan asia-pacific region centers.
 suppliers licensing partners retail e-commerce stores.
 inventory owned until employees.
 april 2 2011 510-shops 236 retail locations ralph lauren 178 south korea.
 180 to 3600 square feet.
 share cost department store partners.


facility amended 2013 2012.
 2014 maturity march 2019.
 aggregate commitment $ 3. 990 billion credit facility.
 additional $ 1. 0 billion borrowing capacity not $ 4. 990 billion.
 interest borrowings london interbank rate plus spread.
 exceed maximum leverage ratio net debt earnings 3 to 1 less 1 to 1 december 31 2014.
 facility provides back-up liquidity working capital investment opportunities.
 no amount outstanding.
.
 october 14 2009 blackrock established unsecured notes maximum $ 3. 0 billion.
 increased $ 3. 5 billion 2011 $ 3. 785 billion 2012.
 2013 increased $ 3. 990 billion.
 supported 2014 credit facility.
 december 31 blackrock no cp notes outstanding.
long-term borrowings carrying fair value estimated market prices december 31 2014 maturity amount unamortized discount carrying value fair value.
. 375%. 375 % 2015
. 25%. 2017
.
 4. 25%. 25 % 2021
 3. 375%. 375 % ) 2022
. 50%. 50 % 2024
 long-term borrowings
 december 31 2013 carrying value $ 4. 939 billion fair value $ 5. 284 billion prices 2013.
.
 issued $ 1. billion 3. 50%. unsecured unsubordinated notes maturing march 18 2024.
 proceeds refinance indebtedness fourth quarter 2014.
 interest payable semi-annually march 18 september 18 $ 35 million per year.
2024 notes redeemed maturity company redemption price.
 issued discount $ 3 million amortized over term.
 incurred $ 6 million debt issuance costs amortized term.
 2014 $ 6 million unamortized.
 2015 2022.
 2012 issued $ 1. 5 billion unsecured obligations.
 senior debt securities $ 750 million. 375%. notes june 2015 $ 750 million. 2022.
 proceeds repurchase blackrock 2019s common stock series b corporate purposes.
 interest 2015 2022 notes $ 10 million $ 25 million per year payable semi-annually june 1 december 1 commenced december 1 2012.
 redeemed maturity 201d redemption price.
 par value future payments early redemption.
 2015 2022 issued discount $ 5 million amortized over term.
 company incurred $ 7 million debt costs amortized 2015 2022.
 2014 $ 4 million unamortized.
.
 issued $ 1. billion unsecured obligations.
 senior debt securities $ 750 million. 25%. 2021 $ 750 million repaid 2013 maturity.
 proceeds repurchase blackrock 2019s series merrill lynch.
.


separation 16 2015 separate materials technologies business spin-off.
 fourth quarter incurred legal advisory fees $ 7. per share.
 equity 30 december 2014 acquired partner equity atmospheric industrial gases venture north america $ 22. increased ownership 50% to 100%.
 transaction combination consolidated industrial gases segment.
 assets acquired plant equipment recorded fair value acquisition date.
 determined discounted cash flow analysis.
 first quarter 2015 gain $ 17. $ 11. 05 per share revaluing equity interest value.
 fourth quarter 2013 incurred legal fees $ 10. per share acquisition large common stock pershing square capital management.
 transactions.
.
.
 $. decreased 5.
 gain $ 33. $ 28. 13 per share sale two parcels land.
gain offset foreign exchange lower gains sales emissions credits.
 items significant.
 2014.
 2013 52. decreased $ 17. due higher gains small assets government grants favorable commercial contract settlement.
 items significant.
.
 incurred $ 152. $ 158.
 capitalized interest.
 expense $ 103. 125.
 2015.
 2014 interest decreased $ 5.
 stronger.
 dollar higher debt balance 7.
 higher carrying value construction.
 2014.
 2013 decreased $ 9.
 lower average interest rate reduced $ 13 higher debt balance increased interest 6.
 higher carrying value.
 early retirement debt payment $ 146. 3000000 unidades. bonds due 2030 $ 130. net loss $ 16. per share.


decreased 2015 sales recognized multi-year programs limited large new business awards.
 decreased lower customer funding declining activities warfighter support programs budget reductions.
 2019 2016 net sales decline loss contracts competitive environment volume contraction contracts.
 operating profit decline losses re-compete programs.
 2016 margins lower 2015.
 defense systems tactical missiles air-to-ground weapon systems logistics fire control mission operations engineering manned ground vehicles energy management solutions.
 programs pac-3 thaad multiple launch rocket system hellfire jassm javelin apache sniper ae low altitude navigation.
 operating results.
 net sales $ 6770 7092
 operating profit
 margins 18. 9%. 3%.
 backlog year-end $ 15500 $ 13300
mfc 2019s net sales decreased $ 322 million 5%.
 lower sales $ 345 million air missile defense fewer deliveries lower volume $ 85 million tactical missile fewer increased deliveries.
 higher sales $ 55 million energy solutions increased volume.
 operating profit decreased $ 62 million 5%.
 lower profit $ 100 million fire control programs lower risk retirements $ 65 million tactical missile programs fewer.
 offset higher operating profit $ 75 million.
 $ 60 million lower 2015.
 2019s net sales increased $ 297 million 4%.
 higher net sales $ 180 million increased volume $ 115 million fire control increased deliveries $ 125 million other programs.
 offset lower net sales $ 115 million tactical missile fewer deliveries.
profit decreased $ 35 million 3% 2014.
 lower profit $ 20 million tactical missile adjustments fewer deliveries $ 45 million lower risk retirements.
 offset higher profit $ 20 million air missile defense


aeronautics business segment.
 net adjustments 2011 profit booking rate adjustments is&gs aeronautics business segments.
 research design development manufacture upgrade advanced military aircraft unmanned vehicles.
 programs f-35 lightning f-22 raptor f-16 falcon c-130 hercules c-5m super galaxy.
 results.
 2011
 net sales $ 14953 14362
 operating profit
 margins. 4%. 4 %.
 backlog year-end
 net sales increased $ 591 million 4%.
 higher net sales $ 745 million f-35 lrip contracts increased production volume $ million f-16 programs higher aircraft deliveries 37 2011 lower volume sustainment $ 140 million c-5 programs higher aircraft deliveries.
increases lower sales $ 365 million decreased production volume lower risk retirements f-22 $ 110 million f-35 contract reducing profit booking rate lower volume $ 95 million volume offset.
 sales c-130 comparable 2011.
 profit increased $ 69 million 4%.
 higher profit $ 105 million c-130 risk retirements $ 50 million f-16 programs higher deliveries 50 million f-35 contracts increased production volume risk retirements $ 50 million intangible asset amortization f-16 contracts.
 lower profit $ 90 million f-35 contract profit booking rate $ 50 million decreased production volume risk retirements f-22 resolution contractual matter $ 45 million risk retirements.
 profit c-5 programs comparable 2011.
 $ 30 million lower 2012.
 net sales increased $ 1. 3 billion 10%.
growth net sales higher volume $ 850 million f-35 contracts $ 745 million c-130 programs 33 2011 25 2010 support $ 425 million f-16 support 22 $ 90 million volume c-5 programs two.
 offset decline net sales $ million lower volume f-22 lower $ 155 million f-35 development contract.


notional amounts derivative receivables december 31.
 billions
 interest rate $ 38493 $ 37022
 foreign exchange 2136 1886
 equity 458
 credit derivatives 2241 1071
 commodity 265
 $ 43593 $ 40514
 collateral receivables -6
 collateral $ 44
 notional amounts-party derivative contracts excluding options foreign exchange spot contracts exceed credit losses.
 notional principal amount change hands payments.
 firm held $ 33 billion collateral derivative receivables december 31 2005 $ 27 billion net cash $ 6 billion liquid securities collateral.
 $ 27 billion $ 50 billion derivative receivables.
excluded $ 33 billion collateral $ 10 billion clients transactions secures exposure portfolio.
 excluded credit enhancements letters credit surety receivables.
 firm held $ 41 billion collateral derivative receivables december 31 2004 $ 32 billion net cash $ 9 billion liquid securities collateral.
 benefit $ 32 billion $ 66 billion derivative receivables.
 excluded $ 41 billion $ 10 billion clients secures exposure.
 excluded credit enhancements letters credit surety receivables.
 jpmorgan chase & co.
.
 2005 annual report exposure profile derivatives december 31 2005 table summarizes amounts reported derivative receivables. cost replace market rates counterparty.
 transaction agreement netted mtm exposure collateral represents current credit risk.
credit exposure net value derivative receivables capture future variability.
 firm calculates three measures derivatives-related credit loss peak derivative risk equivalent average exposure.
 incorporate netting collateral benefits.
 peak exposure counterparty extreme 97. 5%. confidence level.
 total potential future credit risk derivatives portfolio not sum peak credit risks.
 credit risk reduced by offsetting transactions separate counter parties one generate credit loss.
 market diversification market-diversified peak measure portfolio aggregation counterparty peak measures maximum losses. if all terparties defaulted.
 derivative risk equivalent exposure riskiness derivative exposure loan.
 unexpected loss derivative counterparty exposure loan exposure.
 less extreme credit loss primary for credit approval derivative transactions.
average exposure expected value derivative receivables future collateral.
 pricing credit capital valuation adjustment.
 exposure $ 36 billion $ 38 billion 2005 2004 compared $ 44 billion $ 57 billion 2005 2004.
 graph exposure profiles derivatives 10 years mdp dre avg metrics.
 declining exposure first year no new trades.


.
 obligations company contracts third parties future payments.
 table contractual obligations 1 - 3 4 - 5 5.
 less than 1 year 1 - 3 years 4 - 5 years 5
 long-term debt $ 1103. $ 100. $ 655. $ 347.
 capital leases 6.
 operating leases 77. 23. 32. 9. 12
 purchase obligations 13.
 long-term liabilities 352. 139. 42. 170.
 contractual obligations $ 1552. $ 137. $ 831. $ 400. $ 183.
 accounting estimates financial results affected by income taxes income accounting.
 tax liabilities jurisdiction.
 deferred tax assets.
 future taxable income excess inventory.
company evaluates deferred tax assets balance sheet provides valuation allowances inventory unsaleable deferred unsaleable carrying cost.
 tax benefit realized.
 federal income taxes determine instruments income foreign subsidiaries undeployed excess.
 company.
 reserves taxing jurisdictions.
 inventory instruments net realizable value.
 subject regulatory review audit reserves evaluates stock levels historical periods.
 patterns demand products makes reasoned judgments instrument systems.
 basis inventory tax expense liabilities reserves.
 believes provisions income taxes inventory recorded cost.
 obsolete.
 discontinued items destroyed written.
 management evaluates changes commitments contingencies valuation reserves market conditions competitive product liability claims.
 counsel current information framework settlement information market value excess inventory instruments claims.
 actuarial model international financial reporting standards management.
accepted accounting principles.
 product liability claims.
 zimmer centerpulse differed historical patterns loss development approaches estimation.
 acquisition determined loss.
 consistent approach financial reporting.
 ultimate costs common contingencies.
 estimation technique.
 change estimate resulted earnings $ 3. 0 million after tax fourth quarter.
 not material financial position.


september 2007 settlement united states department justice financial relationships orthopaedic manufacturers surgeons.
 paid civil settlement $ 169. 5 million recorded expense.
 no tax benefit recorded uncertainty tax treatment.
 intend pursue resolution uncertainty ascertain outcome timing.
 note 15.
 june 2006 financial accounting standards board issued interpretation.
 uncertainty income taxes.
.
 tax benefits financial statements.
 tax benefit uncertain tax position.
 largest benefit fifty percent likelihood settlement.
 derecognition classification interest penalties income taxes disclosures.
 adopted fin 48 january 1 2007.
 long term tax liability settlement federal state foreign income tax liabilities $ 102. 1 million accrued interest liability $ 1. 7 million.
adoption fin 48 components liability.
 liability unrecognized tax benefits $ 6. million january 1 2007.
 reduction retained earnings $ 4. million goodwill $ 61. million tax receivable $ 58. 2 million increase interest/penalty payable $ 7. 9 million 1 2007.
 48 unrecognized tax benefits $ 95. 7 million january 1 2007 $ 28. 6 million effective tax rate.
 $ 135. 2 million december 31 2007.
 $ 41. million effective tax rate.
 reconciliation benefits.
 balance january 1 2007.
 increases.
 decreases.
 increases.
 decreases.
 decreases.
 december 31 2007.
 accrued interest penalties unrecognized tax benefits consolidated statements prior periods.
january 1 2007 liability $ 9. 6 million accrued interest penalties $ 7. 5 million effective tax rate recognized.
 liability $ 19. 6 million december 31 2007.
 $ 14. 7 million tax rate.
 tax liability unrecognized benefits next twelve months significant operations financial position.
.
 federal statute limitations open 2003 2004 examination.
 resolution twelve months impact financial.
 1999 tax year centerpulse acquired october 2003 issue dispute.
 resolution impact tax rate adjustment goodwill.
 state income tax returns examination 3 to 5 years.
 impact federal changes year notification.
 returns.
 next twelve months impact operations financial.
 foreign jurisdictions statutes limitations 3 to 5.
open examination foreign tax authorities jurisdictions include australia 2003 canada 1999 france 2005 germany italy 2003 japan 2001 puerto rico 2005 singapore 2003 switzerland 2004 united kingdom 2005.
.
 0 7 notes consolidated financial statements


financial statements sumitomo mitsui financial group.
 provides credit loss protection loan commitments investment-grade commercial lending.
 $ 27. 51 billion $ 29. 24 billion december 2014 2013.
 credit loss protection limited to 95% first loss maximum $ 950 million.
 protection 70% additional losses maximum $ 1. 13 billion $ 768 million $ 870 million protection provided december 2014 2013.
 firm uses financial instruments mitigate credit risks.
 credit default swaps underlying instrument market index.
 warehouse financing.
 provides financing assets.
 corporate loans commercial mortgage loans.
 three business days.
 contingent financing resale agreements.
 funding depends contractual conditions expire unused.
firm has commitments banks collateral margin deposit requirements.
 $ 5. 16 billion $ 7. 12 billion 2014 2013 include private equity real estate assets funds.
 $ 2. 87 billion $ 5. 48 billion funds.
 funded at market value.
 obligations long-term noncancelable lease agreements office space expiring through 2069.
 agreements subject to escalation real estate taxes charges.
 future minimum rental payments.
.
 292
 rent expense $ 309 million 2014 $ 324 million 2013 $ 374 million 2012.
 leases include office space.
 rent expense growth. records liability value remaining lease rentals reduced by rentals leases future benefits.
 costs to terminate lease before recognized measured at fair value on termination.


tower corporation subsidiaries financial statements contingent consideration changes fair value discounted probability- weighted approach.
 3 unobservable inputs cash flows discount factor uncertainties.
 changes impact fair value liabilities balance sheets operating expenses.
 estimates acquisition contingent consideration payments zero $ 43. million.
 2011 fair value contingent changed.
 balance january 1 $ 25617 $ 5809
 currency translation adjustment
 balance december 31 $ 23711 $ 25617
 long-lived assets carrying value $ 5379. million written net realizable value $ 5357. million asset impairment charge $ 21. million.
 2011 assets value $ 4280. million written net realizable value $ 4271. million asset impairment charge $ 9. million
adjustments determined comparing estimated proceeds sale future discounted cash flows asset carrying value.
 no other items measured fair value year 2012.
 long-term obligations approximate fair value 2012 2011.
 estimates based market values.
 long-term debt not traded fair value estimated discounted cash flow analysis similar terms maturities.
 2012 carrying fair obligations were $ 8. 8 billion $ 9. 4 billion $ 4. 9 billion 1 4. 5 billion.
 2011 obligations were $ 7. 2 billion $ 7. 5 billion $ 3. 8 billion.
.
 filed consolidated.
 federal tax return subsidiaries.
 year 2012 intends file reit corporations.
 files tax returns states.
company 2019s state tax returns reflect subsidiaries connection state.
 taxes consolidated.


financial statements.
 group.
 guarantees securities gs finance corp. wholly subsidiary.
 guaranteed obligations goldman sachs.
. bank usa execution clearing.
 exceptions.
 2008 contributed subsidiaries gs bank usa.
 reimbursement losses credit-related.
.
 gs bank usa collateral interests subsidiaries illiquid assets.
.
 guarantees obligations subsidiaries transaction-by.
.
 maximum payout subsidiary guarantees guaranteed obligations. liabilities not disclosed.
.
 dividends share $ 2. 2014 $. 2013 $ 1. 2012.
.
 dividend $ 0. 60 common share march 30.
 share repurchase program common equity.
share repurchase program open-market purchases rule 10b5-1 amounts timing determined by firm capital position by market conditions price trading volumes common stock.
 confirmation federal reserve board.
 table common stock repurchased 2014 2013 2012.
 repurchases 31. 39.
 cost per share $ 171. $ 157.
 cost repurchases $ 5469 $ 6175 $ 4637
 employees remit shares cancel restricted stock units options tax withholding.
 2014 2012 employees remitted 174489 161211 33477 value $ 31 million $ 25 million $ 3 million cancelled. million. million million total value $ 974 million $ 599 million $ 1. 44 billion.
 cancelled 15. 6 million stock options $ 2. 65 billion.


securities quoted active markets trustee determines value prices pricing vendors.
 funds traded trustee applies pricing information unit.
 firms employ pricing vendors.
 derive prices managers.
 domestic defined benefit plans investment stock s&p 500.
 trustee obtains prices vendors not quotable categorized level 3.
 table assets inputs.
 balance december 31 2016 $ 11
 purchases 28
 distributions -1
 gain loss
 balance 31 2017 $
 pension trusts 2019 two trusts.
.
.
 assets $ 1739 million $ 1632 2017 2016 target allocations 68% fixed income 27% domestic equities 5% international equities.
.
pension trust assets $ 480 $ 441 million 2017 2016 target allocations 40% fixed income 30% diversified growth funds 20% equities 10% real estate.
 assets capital growth income liability hedge.
 mix established performance risk.
 investments returns capital reduce volatility.
 holdings diversified.
 portfolios index managed equity strategies.
 fixed income strategies.
.
 debt instruments.
 short-term portfolio capital preservation securities uninvested cash receivables payables.
 financial leverage.
.
 defined plans.
 managed indexed equity funds target date funds s&p.
 common stock stable value market strategies.
 self- directed mutual fund.
 purchased 228248 sold 297750&p.
 2017.
 2016.
. shares.
.6 shares 2016 market values $ 255 $ 171.
 dividends s&p global.
 common stock $ 3 $ 2 2017 2016.
.
 incentive awards directors 2002 employee stock incentive plan deferred stock ownership plan.
 nonquali fied stock options appreciation rights performance stock restricted stock awards.
 common stock credited deferred stock accounts.
 50% directors 2019 annual com pensation dividend equivalents deferred stock accounts.
 defer remaining compensation shares credited deferred stock.
 recipients.
 shares delivered five years.
 until terminated no shares.
 s&p global 2017 annual report


operations estimated fair value acquired assets liabilities recorded in consolidated financial statements acquisition.
 fiscal 2016 presented effects cadence 2019s financial results.
 fair values determined inputs not market.
 see note 16 consolidated financial statements.
 trust children lip-bu tan president less than 2% 2 rocketick technologies.
 wife co-trustees disclaim interest.
 board directors reviewed transaction concluded.
.
 recused from valuation.
.
 financial advisor fairness opinion.
 acquired jasper design automation. provider analysis solutions mountain view.
 acquired technology complements cadence system design verification platforms.
 cash consideration closing $ 28. 7 million $ 139. 4 million.
 payments employees third quarter fiscal 2017.
 completed two business combinations 2014 cash $ 27.$ 2. million.
 acquisition $. million $. 7 million $ 3. 7 million 2016 2015 2014.
 professional fees administrative costs consolidated income statements.
.
 changes carrying carrying amount.
 balance january 3 2015 $
 foreign currency -1995
 january 2 2016 551772
 23579
 -2587
 december 31 2016 $ 572764
 goodwill impairment test fair value unit exceeded carrying assets no impairment.


eastman notes financial statements stock option awards granted non-employee directors employees eligibility requirements.
 single annual option grant fourth quarter compensation management committee occasional grants.
 exercise price equal closing price company stock.
 term ten years vesting periods three years.
 vesting end vesting period.
.
 option awards market price traded option pricing model.
 fair value options market.
 financial pricing model value.
 model fair value.
 weighted average assumptions options 2006 2005 2004.
 volatility rate 21. 40%. 40 %. 90%. 90 %.
 dividend yield 3. 24%. 24 %. 29%. %. 80%. %
 risk-free interest rate 4. 62%. 62 %. 48%. 46%. 46 %
 forfeiture rate. 75%.75 %
 expected term years 4.
 adoption sfas.
 123 company calculated expected term stock options six years.
 fourth quarter 2005 analyzed grant transactions ten year term.
 analysis year.
 weighted average expected term 4. years 2006 impact option swap reload grants shorter.
 volatility rate derived common stock volatility.
 weekly high closing stock price.
 derived formula.
 dividend yield derived formula fair market value common stock.
 average risk-free interest rate derived united states department treasury interest rates daily yield curves.
 adoption sfas.
 123 estimate forfeitures recognized share-based compensation expense.
 sfas.
 123 estimated forfeitures considered compensation expense.
 rates vary composition characteristics award participants.
 forfeitures awards range 0. 75 percent to.estimated forfeitures. 75.