reporting environmental results company classifies exposure into direct assumed reinsurance london market.
 table displays reserves statistics by category december 31 2011.
.
 reserves
 direct $ 271
 assumed reinsurance 39
 london 57
 367
 ceded
 net $ 320
 one year amount $ 58  survival ratio 6. 4.
 three year average $ 58 ratio 6. 4.
 completed annual asbestos reserve evaluations.
 reviewed direct insurance accounts assumed reinsurance london market.
 strengthened net asbestos reserves by $ 290 second quarter 2011.
 increases claim frequency severity expense driven mesothelioma claims.
 unfavorable development assumed reinsurance accounts.
 increases claim severity expense.
 driven by litigation.
 unfavorable.
changes 2010 2009 $ 169 $ 138 increases asbestos reserves.
 company expects asbestos liabilities annually.
 divides asbestos exposures into direct assumed reinsurance london market.
 major asbestos defendants wellington accounts subdivided structured settlements wellington future exposures $ 2. 5  less $ 2. 5 unallocated.
 structured settlements insured timing claim payments.
 wellington subcategory includes agreement.
.
 other major asbestos defendants subcategory represents insureds tiers 1 2 not wellington signatories not structured settlements.
 2 significant exposure.
 future exposures less than $ 2. 5 not major asbestos defendants.
 unallocated category includes reserves asbestos claims insureds not subject aggregate limit.
 between categories.
account future exposure $ 2. 5 recategorized less than $ 2. 5.


5.
 common equity issuer purchases january 25 2019 26812 holders common stock $ 1 share.
 traded new york stock exchange symbol lmt.
 dividends lockheed martin common stock dividends.
 2.
.
.
.
.
 stockholder return performance graph compares return $ 100 lockheed martin common stock december 31 2013 s&p 500 index s&p aerospace defense index.
 arconic. general dynamics harris huntington l3. lockheed northrop grumman raytheon textron. boeing transdigm. united technologies.
 return performance not guarantee future performance.


management obligation asbestos claims ppg settlement.
 settlements aftertax $ 80 million marvin recoveries $ 11 million $ 37 million federal glass class action antitrust settlement.
 business segments sales income.
 industrial coatings 3236 284
 coatings
 optical specialty materials 1001
 commodity chemicals
 coatings sales increased $ 315 million 11% % 2006.
 4% acquisitions increased volumes automotive 2% 2 higher selling prices 1% foreign currency.
 income increased $ 65 million 2006.
 increased sales volume lower overhead manufacturing costs acquisitions.
 reduced inflation offset higher selling prices.
 coatings sales increased $ 420 million 16% 2006.
increased 8% 4% higher prices 3% 3 increased volumes 1% 1 foreign currency.
 income increased $ 50 million 2006.
 sales volume higher prices.
 overhead costs.
 optical specialty materials sales increased $ 134 million.
 10% higher volumes 5% acquisitions.
 income increased $ 65 million 2006.
 2005 charge asset impairment increased $ 27 million.
 38 million increased volumes lower manufacturing costs 2005 hurricane costs 3 million overhead.
 commodity chemicals sales decreased $ 48 million 3%.
 4% chlor-alkali volumes 1% 1 higher selling prices.
 income decreased $ 28 million 2006.
 lower sales volumes higher manufacturing costs.
 2005 increased $ 29 million.
 higher selling prices lower inflation insurance recovery $ 10 million increased.
fourth-quarter chlor-alkali sales earnings impacted production outages.
 uncertain impact sales earnings 2007.
 glass sales increased $ 15 million 1% ( 1 % 2006.
 improved volumes organic growth acquisition.
 foreign currency.
 volumes increased performance glazings automotive replacement glass fiber glass.
 automotive oem glass volume declined.
.
 segment income increased $ 25 million 2006.
 higher equity earnings fiber glass ventures royalty income lower manufacturing natural gas costs inflation lower margin reduced prices.
 fiber glass segment profitability cash flow.
 cost reduction improved equity earnings.
 new joint venture producing high labor content fiber glass reinforcement products.
 higher margin.
 2006 earnings improvement.


performance graph shareholder return $ 100 2010 reinvestment dividends common stock s&p 500 retail index.
 2010 2012 2013 2014 2015
 o'reilly automotive inc. $ 100  $ 132 $ 148  $ 213 $ 319 $ 419
 s&p 500 retail index 103 128  185  203  252
 $ 100 113 147 164


equity securities three months december 31 2012 repurchased 619314 shares common stock approximately $ 46. 0 million including commissions fees stock repurchase program number shares purchased average price paid share dollar value.
 average price paid share dollar value
 october 2012 27524 $ 72.
 november 2012 $ 74. $ 1263.
 december 2012 102400 $ 74. $ 1256.
 fourth quarter 619314 $ 74.
 repurchases $ 1. 5 billion stock repurchase program march 2011.
 management authorized purchase shares open market purchases prevailing prices securities laws requirements subject market conditions.
facilitate repurchases rule 10b5-1 exchange act insider trading laws trading blackout.
 program discontinued.
 average price per share calculated price excluding commissions fees.
 2011 buyback 31 2012.
 january 2013 repurchased additional 15790 shares $ 1. 2 million.
 january 21 2013 repurchased 4. 3 million shares $ 245. 2 million.
 manage remaining $ 1. 3 billion 2011 buyback market conditions.


item 1.
 founded 1886 american water works company.
 holding company delaware.
 largest diverse investor owned publicly-traded united states water wastewater utility company.
 employ 6700 professionals drinking water wastewater services 15 million people 47 states columbia ontario canada.
 regulated businesses.
 market businesses water services four segments reportable.
 non reportable-based businesses management results.
 information item 7 financial condition results note 19 financial statements.
 primary business ownership subsidiaries water wastewater utility services residential commercial industrial customers public authority.
 subsidiaries operate 1600 communities 16 states state commissions.
 federal state governments regulate environmental health safety water quality.
 report results regulated businesses segment.
regulated businesses revenues $ 2743 million 2015 2674 million 2014 2594 million 2013 86. 8%. 88. 8%. 90. 1%. 1 %.
 table summarizes 2019 revenues customers estimated population state december 31 2015 revenues customers estimated population.
 new jersey $ 704 25. 7%. 7 % 660580 20. 3%. 3 %. 22. 3%. 3 %
 pennsylvania 22. 4%. 4 %. 7%. 7 %. 0%. 0 %
 illinois. 8%. 8 %. 6%. 6 %. 7%. 7 %
. 8%. 8 %. 5%. 5 %. 4%. 4 %
. 5%. 5 %. 1%. 1 %. 7%. 7 %
. 2%.174942. 4%. 4 %. %
 virginia. 7%. 7 %. 2%. 2 %. %
 seven states 87. 1%. 1 % 2759263. 8%. 8 %. 1% 1 %
. 9%. 9 %. 2%. 2 %. 9 %
 100. 0%. 0 % 3252691. %. 0 %
 illinois-american water company.
 west virginia-american water bluefield valley.
 georgia hawaii iowa kentucky maryland michigan new tennessee virginia.


each holder share common stock holds one purchase right.
 right entitles to purchase half junior participating preferred stock $ 0. 01 par value at price $ 135 per share.
 rights not exercisable until acquisition by 15% ( 15 % ) or more common stock or intention tender exchange ownership 15%.
 each holder receive shares common stock market value two times purchase price company acquired in business combination or 50% or more assets sold each holder right receive shares common stock acquiring company market value two times purchase price.
 board directors may cause rights for common stock junior preferred shares at exchange rate one share common stock per right or.
 prior to acquisition 15% ( 15 % or may redeem rights at price $ 0. 01 per right.
stock reserved future issuance december 31 2003 company reserved shares equity compensation plans.
 collaborations companies drug discovery development commercialization.
 agreements financial support resources research clinical drug candidates product development marketing sales.
 commercialize products.
 provide funding renewal termination options.
 milestone payments.
 development reimbursement royalty rights profit sharing manufacturing options.
 terms vary.
 collaborations large pharmaceutical companies.
.
 may 2000 pharma discovery development commercialization small molecule drugs kinase protein family.
 novartis up-front payment $ 15000000 $ 200000000 product research funding six.
 common stock option plans 21829
 vertex purchase plan 249
 401 ( k ) plan 125


cgmhi borrowing arrangements contractual lending obligation.
 reviewed flexibility short requirements.
 issues fixed variable rate debt.
 uses derivative contracts interest rate swaps convert.
 corresponds.
 derivative contracts foreign exchange impact debt.
 december 31 2009 weighted average interest rate long-term debt. 51%. 91%. derivative contracts.
 annual maturities long-term debt.
 millions 2010 2011 2012 2013 2014
 citigroup parent company $ 18030 $ 20435 29706 17775 18916 92942
 subsidiaries 18710 29316 17214 5177
 citigroup global markets holdings. 1315
 citigroup funding. 9107 8875
 $ 47162 59656 69344 34895 124830
debt at december 2009 2008 includes $ 19345 million $ 24060 million junior subordinated debt.
 formed business trusts under delaware.
 issuing trust securities investing proceeds in debentures engaging activities necessary.
 approval federal reserve citigroup redeem securities.
 not to redeem purchase 6. 50%. securities xv before september 15 2056 6. 45%. before december 31 2046 6. 35%. before march 15 2057 6. 829%. before june 28 2047 7. 250%. securities xix before august 15 2047 7. 875%. securities xx before december 15 2067 8. 300%. xxi before december 21 2067 exhibit 4. citigroup report form 8-k 2006.citigroup report 8-k november 28 2006 exhibit. march 8 2007. july 2 2007. august 17 2007 exhibit. november 27 2007. december 21  2007.
 agreements benefit holders citigroup 2019s 6.%. junior subordinated deferrable interest debentures due 2034.
 citigroup owns voting securities subsidiary trusts.
 no assets operations revenues cash flows issuance administration repayment securities.
 obligations guaranteed citigroup.


jpmorgan chase.
 2007 annual report 169 fair value hedges changes derivative hedged item recognized earnings.
 hedge termi nated fair value adjustment amor tized earnings yield adjustment.
 cash flow hedges effective recorded income recognized earnings.
 ineffective recognized earnings.
 hedge terminated change fair value recognized cash flows.
 related derivative amounts income recognized earnings.
 net investment hedges changes fair value derivative revaluation foreign currency debt recorded translation adjustments.
 jpmorgan chase hedges fixed- rate long-term debt warehouse loans afs securities msrs gold inventory.
 interest rate swaps common interest rate risk fixed-rate assets floating-rate.
 interest rate options swaptions forwards hedge fair value.
 note 18 pages 154 2013156 annual report.
amounts included earnings hedged net interest long-term debt securities mortgage fees warehouse loans gold inventory.
 gains losses 2007 2006 2005 commit value hedges.
 jpmorgan chase enters derivative contracts variability cash flows-rate instruments rollover short-term assets liabilities foreign currency revenue.
 interest rate swaps futures forward contracts impact interest rate earnings.
 amounts earnings recognized net interest income.
 uses foreign exchange contracts debt instruments protect invest subsidiaries.
.
 hedging instruments excluded recorded net interest income.
 table derivative instrument hedging activities.
 31 2007 2006
 value hedge ineffective net gains losses
 hedge ineffective gains losses
 gains losses transactions
value hedge ineffective gains losses $ 111 51 cash flow hedge ineffective gains losses 29 2 gains losses transactions 15 2014 includes ineffectiveness hedging excluded hedge.
 second half 2007 firm issue short-term canadian dollar notes weak credit market expected $ 263 million net losses december 31 2007 recognized earnings.
 maximum transactions hedged 10 years core lending borrowing activities.
 jpmorgan chase hedge accounting economic hedges.
 credit derivatives risk difficulties.
 interest rate deriva.


7a.
 disclosures market risk millions exposed to risks interest rates foreign currency balance sheet items.
 use derivative instruments manage risks.
 derivative instruments risk management tools not trading speculative.
 exposure risk fair market value cash flows debt obligations.
 majority debt 89% 89 % 91% 91 % ) december 31 2015 2014 bears interest fixed rates.
 debt variable interest rates 10% increase decrease not material interest expense cash flows.
 fair market value debt sensitive changes interest rates impact 10% change interest summarized.
.
 -33. 34.
.
 used interest rate swaps risk management.
 rate swaps outstanding december 31  2015.
 $ 1509. 7 cash equivalents marketable securities conservative short-term bank deposits securities.
interest income investments subject to domestic foreign interest rate movements.
 2015 2014 income $ 22. 8 $ 27. 4.
 100-basis-point increase interest rates income $ 15. cash equivalents securities impacted balances constant.
 translation transaction risks.
.
 changes exchange rates affect revenues expenses.
.
 primary currencies australian dollar brazilian real british pound euro.
.
 dollar 10% operating income 4% 4 % currencies revenue expenses constant 2015.
 operations local currency.
 assets liabilities translated at exchange rates revenues expenses average exchange rates.
 translation adjustments recorded accumulated loss.
 foreign subsidiaries collect revenues pay expenses in currency.
 subsidiaries currencies other.
 assets liabilities susceptible to movements until final settlement.
currency transaction gains losses included in office general expenses.
 review foreign exchange exposures use currency exchange contracts hedge fluctuations rates.
 enter contracts for speculative purposes.


failure with financial covenants under credit facilities adverse events defaults accelerate maturity indebtedness.
 financial assurances.
 maturity acceleration default under debt instruments senior notes subject to acceleration maturity.
 sufficient liquidity repay indebtedness.
 seek amendment for or repay debt with proceeds new debt equity asset sales.
 amend facilities raise capital repay obligations maturities accelerated.
 required to governmental agencies entities under environmental regulations landfill operations costs collection landfill transfer station contracts.
 surety bonds letters of credit insurance policies trust deposits.
 assurance for determined by state environmental regulations.
 with.
 states require third-party engineering specialist to determine estimated costs financial assurance.
 differ from obligation.
.
financial assurance requirements contract performance varies by contract.
 provide insurance program collateral performance obligations.
 increase assurance requirements 2010 instruments may change.
 issued not debt.
 not reflected in consolidated balance sheets.
 record capping closure post-closure self-insurance liabilities.
 obligations recorded if.
.
 no debt obligations instruments leases.
 guarantee third-party debt.
 free cash flow.
 operating activities purchases property equipment proceeds from sales.
 cash flow years 31 2009 2008 2007 calculated millions.
 activities $ 1396. 5 $ 512. 2 $ 661. 3
 purchases property -826. -386. -292. 292
 proceeds from sales property 31. 8. 2 6.
 free cash flow $ 602. $ 133.5.


september 24 2011 unrecognized tax benefits $ 1. 4 billion $ 563 million 2019s tax rate.
 25 2010 $ 943 million $ 404 million tax rate.
 aggregate changes tax benefits three years 24 2011.
 2010 2009
 balance $ 943  971 $ 506
 increases
 decreases
 increases
 decreases settlements
 decreases expiration statute limitations -3
 ending balance $ 1375  $ 943 $ 971
 includes interest penalties tax benefits.
 september 24 2011 25 2010 interest penalties $ 261 million $ 247 million non-current liabilities.
 recognized interest expense 2011 2009 $ 14 million $ 64 million 2010 benefit $ 43 million.
 subject taxation files income tax returns.
jurisdiction foreign jurisdictions.
.
 income tax years prior to 2004 closed.
 internal revenue service audit company federal income tax returns 2004 2006 proposed adjustments.
 company contested adjustments.
 examining 2007 2009.
 company subject to audits state local foreign tax authorities.
 years 1988 2001 open.
 management believes provision adjustments tax examinations.
 outcome tax audits.
 adjust provision income tax.
 unrecognized tax benefits 12 months.
 shareholders equity-based compensation stock five million shares authorized preferred stock none issued outstanding.
 board directors authorized to determine alter rights preferences privileges restrictions authorized unissued shares stock.
 comprehensive income net other comprehensive income.
 revenue expenses gains losses


one percentage point year increases effects.
 millions-percentage increase decrease
 service interest cost components $ 10 $ -8
 benefit obligation $ 95 $ -82
 cost incurred costs multi-employer pen sion plans $ 2 million 2003 $ 1 million 2002 2001.
 healthcare costs $ 1 million 2003 2002 2001.
 deferred compensation plan managers compensation phantom stock.
 deferred earns return investment options.
 owed unfunded unsecured obligation.
 retirement death disability termination employment compensation deferred earnings distributed cash ppg stock.
 plan provides investment alterna transfer accounts.
 mitigate compensation expense market value purchased portfolio marketable securities accounts.
 changes market value included earnings.
 trading align securities.
cost deferred compensation plan dividend equivalents phantom ppg stock account investment income change market value loss 2003 $ 13 million income $ 9 million $ 6 million 2002 2001.
 amounts included in administrative.
 change market value investment portfolio 2003 income $ 13 million loss $ 10 million $ 7 million 2002 2001. obligations under plan were $ 100 million $ 84 million as dec.
 31  2003 2002 investments in securities $ 68 million $ 53 million as.
 31  2003 2002.
.
 ppg involved in lawsuits claims monetary damages sought.
 product liability patent environmental antitrust.
 property adequate insurance insurers coverage may contest coverage if settlement implemented.
ppg 2019s lawsuits include insurers third parties losses environmental asbestos.
 future litigation unpredictable.
 management believes outcome lawsuits asbestos settlement financial position liquidity outcome may material to operations.
 company named defendant antitrust lawsuits ppg acted prices markets automotive federal class action suit glass products.
 cases consoli dated.
 pennsylvania. early stage.
 state cases stayed dismissed.
 initial defendants glass class action antitrust case settled.
 may 29 2003.
 court western pennsylvania.
 granted ppg 2019s motion summary judgment dismissing claims ppg glass class action case.
 plaintiffs appealed 2003 annual report form 10-k ppg industries.


latin american soft alloy extrusions business moved transportation construction solutions segment.
 remaining engineered products alcoa fastening systems rings power propulsion forgings extrusions titanium engineered products.
 information updated new structure.
 segments $ 1906 2015 $ 1968 2014 $ 1267 2013.
 shipments sales atoi data production realized price average cost three years december 31 2015.
 note consolidated financial statements ii item 8.
.
 production 15720 16606
-party shipments 10755
 average price metric ton $ 317
 average cost metric ton $ 237 282
 third-party sales $ 3455 $ 3509
 intersegment sales 1687
 total sales $ 5142 $
 $ 746 $ 370 $ 259
includes production costs raw materials conversion costs labor utilities depreciation depletion amortization plant administrative expenses.
 alcoa upstream operations worldwide refining system.
 alumina mines bauxite alumina produced sold smelter customers primary metals segment.
 half production sold third parties remainder used internally primary metals segment.
 alumina transferred market prices.
 third- party sales agents traders distributors.
 sales transacted.
 dollars costs expenses local currency australian dollar brazilian real.
 euro.
 global joint venture alcoa alumina affiliated entities bauxite mines alumina refineries refinery refinery.
 alcoa owns 60% alumina limited owns 40% consolidated for financial reporting.
 results inclusive 40% interest.
december 2014 awac jamalco bauxite mine alumina refinery joint noble group ltd.
 jamalco 55% 55 % ) owned subsidiary awac 55% operating results assets liabilities alumina segment.
 refinery 779 kmt-per-year generated sales approximately $ 200 2013 refinery mine 500 employees.
.


consolidated financial statements.
 less liquid non-financial.
 table presents type.
 millions december 2012
 property leasehold improvements 8697
 goodwill
 income tax-related
 equity-method
 miscellaneous receivables
 $ 39623 $ 23152
.
 accumulated depreciation amortization $ 9. 05 billion $ 8. 46 billion december 2012 2011.
.
 $ 149 million intangible assets sale.
 13 goodwill.
.
 24 income taxes.
.
 investments fair $ 5. 54 billion $ 4. 17 billion december 2012 2011 instruments. option
.
 $. 77 billion assets reinsurance business sale december 2012.
.
 $ 16. 92 billion available-for-sale securities assets fair value. liabilities $.62 billion liabilities accrued expenses. note 8 insurance-related assets liabilities sale.
 firm sale majority stake reinsurance business 2013 material gain loss.
 consolidate business.
 property leasehold improvements equipment included $ 6. 20 billion $ 6. 48 billion december 2012 2011.
 remainder held by investment entities consolidated.
 property equipment depreciated useful life.
 leasehold improvements amortized life lease.
 costs software capitalized amortized life.
 property leasehold improvements equipment tested for impairment.
 policy impairment testing assets.
 note 13.
 goldman sachs 2012 annual report


may 12 2017 stockholders approved american water works.
 2017 omnibus equity compensation plan.
 7. 2 million shares common stock issued 2017 plan.
 december 31 2017 7. 2 million shares available grant.
 incentive stock options nonqualified stock options stock appreciation rights stock units stock awards dividend equivalents.
 no additional awards 2007 plan.
 shares issued.
 cost services stock options awards measured grant date value.
 amortized three-year period.
 awards granted 2017 2016 2015 equity.
 recognizes compensation expense stock awards period.
 stratified grant populations employee turnover rates forfeitures.
 compared forfeitures adjusted.
 stock-based compensation expense operation maintenance statements years december 31.
 2016
 options
employee stock purchase plan
 stock-based compensation
 income tax benefit
 compensation expense tax
 no significant compensation costs 2017 2016 2015.
 receives tax deduction value award exercise distribution date.
 recognizes tax benefits deferred income tax assets.
 tax deductions consolidated statements financing section.
 no grants 2017.
 2016 2015 granted non-qualified stock options 2007 plan.
 options vest three-year service period 1 no performance vesting conditions.
 expense recognized straight-line amortized service period.


stock awards options marathon grants options 2007 2003 plan.
 right purchase shares common stock fair market value.
 granted 2003 tandem stock appreciation right receive cash common stock excess fair market value price.
 stock options 2007 2003 vest three-year maximum term ten years.
 stock appreciation rights.
 no 2007 plan.
 right receive payment equal excess fair market value stock.
 2003 granted stock-settled options.
 2003 vest three-year maximum term ten years.
 stock performance awards 2003.
 no 2007 plan.
 2005 discontinued granting grants cash-settled performance units.
 stock performance awards 2003 plan vested forfeited.
 no outstanding awards.
 restricted stock marathon grants units 2007 plan 2003.
 2005 compensation committee began granting time-based restricted stock.officers marathon.
 restricted stock awards three years from grant contingent employment.
 grants stock non-officer international employees performance.
 awards vest one-third increments three-year employment.
 recipients vote receive dividends.
 non-vested shares not transferable held by marathon agent.
 equity compensation program non-employee directors.
 receive stock hold until board.
 dividends receive common stock units.
 $ 80 million $ 83 million $ 111 million 2007 2006 2005.
 income tax benefits $ 29 million $ 31 million $ 39 million.
 cash received option $ 27 million $ 50 million.
 tax benefits deductions $ 30 million $ 36 million.
 cash settlements $ 1 million $ 3 million 2007 2006.
 granted officer non-officer employees.
weighted average grant value assumptions.
 2007 2006
 average price share $ 60. 94 37. 84 25.
 dividends share $. 96. 80
 life 5.
 volatility 27% 27
 risk-free interest rate 4.
 average grant date value stock option awards $ 17. 24 10. 19 6.


entergy corporation subsidiaries pollution environmental secured mortgage bonds.
 implicit interest 4. 8%.
 nuclear waste policy act 1982 subsidiaries contracts spent nuclear fuel disposal.
 one-time fee april 7 1983.
 arkansas electric power nuclear fuel one fee accrued interest note 10 waterford 3 grand gulf lease obligations.
 lease obligations $ 149 million louisiana $ 97 million energy long-term doe obligations $ 181 million arkansas note payable nypa $ 95 million debt due one year.
 fair values level 2 hierarchy based benchmark yields.
 long-term debt maturities december 31 2013 five years.
 385373
 entergy purchased fitzpatrick indian point 3 power plants.
entergy issued notes nypa seven installments $ 108 million year eight installments $ 20 million eight years.
 notes implicit interest rate 4. 8%.
 purchase indian point 2 2001 liable nypa additional $ 10 million year 10 years september 2003.
 liability recorded 2001.
 july 2003 payment $ 102 million maturity note nypa.
 utility companies entergy post collateral.
 gulf states louisiana mississippi texas long-term financing ferc october 2015.
 arkansas apsc december 2015.
 new orleans city council july 2014.
 supply system energy capital maintain equity capital 35% total capitalization


company paid taxes $ 60515 42116 $ 62965 2011.
 june 30 2010 $ 7187 unrecognized tax benefits.
 $ 8897 unrecognized benefits $ 6655 effective tax rate.
 accrued interest penalties $ 1030 $ 890 tax positions 2011 2010.
 reconciliation unrecognized tax benefits.
 balance july 1 2009 5518
 additions 691
 reductions
 2049
 reductions -298
 settlements
 reductions expirations -734
 june 30 2010 7187
 additions 1338
 reductions
 599
 reductions
 expirations statute limitations -227
 balance june 30 2011 8897
 2010 revenue service examination.
 federal income tax returns 2008 2009 end 2011.
 financial position.
.
state income tax returns 2008 years subject examination statute limitations rules.
 changes reduce unrecognized tax benefits balance $ 3000 - $ 4000 twelve months 2011.
 sells products banks credit unions financial institutions united states collateral.
 billings due 30 days from.
 reserves maintained for credit losses.
 purchases computer hardware maintenance.
.
 impact future operations.
 stock based compensation plans pre-tax income 2009 includes $ 4723 $ 3251 $ 2272 compensation costs.
 total cost $ 4209 $ 2347 $ 1620.


debt maturities debt maturities december 31 2008 excluding market value adjustments.
.
 2009 $ 720
 2010 465
 2011 555
 2012 746
 2013 713
 5728
 $ 8927
 31 2008 reclassified long-term debt $ 400 million.
 short-term borrowings long-term.
 december 31 2007 reclassified long-term debt $ 550 million.
 mortgaged properties value $ 2. 7 billion $ 2. 8 billion december 31 2008 2007 collateral capital leases equipment obligations financing.
 merger missouri pacific 1997 value requirements.
 assets $ 6. billion.
 collateral value maintained term mortgage bonds.
 facilities december 31 2008 $ 1. 9 billion credit revolving credit facility.
 issuance commercial paper.
 2008.
fees interest rates facility similar to investment- grade borrowers.
 allows borrowings floating rates london interbank plus spread depending senior unsecured debt ratings.
 requires union pacific corporation maintain debt-to-net-worth coverage ratio borrowing.
 december 2008 2007 compliance covenant.
 debt includes credit arrangements capital leases guarantees unfunded vested pension benefits.
 2008 $ 30. 9 billion debt $ 9. 9 billion outstanding.
 expect satisfy-net-worth coverage ratio factors could affect.
 facility financial restrictions credit rating triggers collateral.


.
 allowance credit losses.
 millions 2009 2008 2007
 loan losses year $ 29616 $ 16117 8940
 credit losses -32784 -11864
 recoveries 2043
 $ -30741 -9926
 30741
 reserve 5741 11297
 2278 3366
 credit losses $ 38760 $ 33674 $ 16832
 -1164
 loan losses end year $ 36033 29616 16117
 losses unfunded lending commitments $ 887 $ 1250
 unfunded -363
 losses end year $ 1157 $ 887 1250
 unfunded lending $ 37190 $ 30503 $ 17367
.
 reductions loan loss reserve $ 543 million securitizations $ 402 million sale transfers..
 real estate 562 million.
-sale.
 2008 loan loss 800 million translation 102 million securitizations 244 million german retail banking 156 million citicapital $ 106 million cuscatl overseas chinese acquisitions.
 2007 loan loss $ 475 million securitizations-sale 83 million.
 citifinancial $ 610 million acquisitions egg cuscatl financiero.
 loss reserves unfunded corporate lending.


goldman sachs group.
 subsidiaries investing lending origination loans.
 longer-term.
 debt securities loans public equity securities real estate entities.
 results investing lending.
 2015 2013
 equity securities $ 3781 $ 4579 $ 4974
 debt securities loans 1655 2246 2044
 net 5436 6825 7018
 operating expenses 2402 2819 2686
 pre-tax earnings $ 3034 $ 4006 $ 4332
.
 consolidated investments equity loans $ 391 million sale metro 2014.
 reclassifications.
 2015.
 net revenues investing lending $. billion 2015 20% lower 2014.
 lower revenues equities sale metro lower gains private equities.
 revenues debt securities loans lower.
revenues investing lending 2015 events sales public offerings financings decline equity prices high-yield credit spreads.
 global economy.
 equity markets decline credit spreads revenues.
 operating expenses $ 2. 40 billion 2015 15% lower 2014 lower depreciation amortization expenses impairment charges sale metro.
 pre-tax earnings $ 3. 03 billion 24% lower 2014.
.
 net revenues investing $ 6. 83 billion 3% lower 2013.
 revenues equity securities lower gains public equity prices consolidated investments.
 offset increase net gains private equities.
 revenues debt securities loans higher 2013 interest income increased lending increase net gains sales investments.
 events strong corporate performance gains sales.
 operating expenses $ 2.billion 2014 5% higher compensation offset investments.
 pre-tax earnings $ 4. billion 8% lower 2013.


information oil gas activities future cash flows oil gas reserves millions 2004 2003 2002 sales transfers oil gas production transportation administrative costs $ 2715 2487 1983 changes prices production transportation administrative costs 950 1178 2795.
 2004 2003 2002
 sales transfers oil gas costs -2715 -2487 2487 -1983
 changes prices costs 950 1178 2795
 extensions discoveries improved recovery 1352 618 1032
 development costs 711
 future development costs -556 -478 -297
 estimates 494
 purchases sales minerals -531
 exchanges 2013
 790 807
 income taxes -529 -1288
 -62 -165
 change year 468 560
 6001 5441
 end
change discontinued operations 2013 -384


.
 debt millions $ 19390 $ 21496 18870
 short-term debt 6. 8%. 8 % 12. 1%. 1 %. 1%. 1 %
 2. 9%. 9 % 3. 2%. 2 %. 3%. 3 %
 capital 45. 6%. 6 % 47. 8%. 8 % 57. 5%. 5 %
 shareholders equity non-current deferred income tax liabilities debt.
 decrease short-term debt 2019 payment short-term long-term.
 increase debt reclassification notes long short-term.
 disclosures note 16 consolidated financial statements.
.
 worldwide $ 620 million restricted.
 five-year unsecured revolving credit facility borrowing $ 2. 25 billion.
 december 2022.
issue $ 100 million letters credit new revolving credit facility access additional $ 500 million financing maximum commitment $ 2. 75 billion.
 use proceeds fund corporate needs.
 borrowings september 30 2019 $ 485 million.
 agreement financial covenants.
.
 maintain interest expense coverage ratio 4-to-1 each fiscal quarter.
 leverage coverage ratio no more 25e6 6-to-1. 75-to-1.-to-1.
 informal lines of credit outside united states.
 repaid borrowings 364-day senior unsecured term loan facility september 2018.
 no commercial paper borrowings outstanding september 30 2019.
 may sell trade receivable assets third parties.


2005 net revenues increased $ 75. 9 million. $ 281. million from $ 205. 2 million 2004.
 net sales license revenues category table.
 189596 151962 37634 24. 8%.
 womens 53500 28659 24841 86. 7%.
 youth 18784 12705 6079.
 accessories 9409 24. 7%. 7
 net sales 271289 200874 70415.
 license revenues 9764 5457 126. 7%.
 revenues 205181 75872.
 sales increased $ 70. 4 million. $ 271. 3 million 2005 from $ 200. 9 million 2004.
 increases mens womens youth product categories volume growth pricing unchanged new products 2005 $ 29.increase net sales metal series line performance hooded sweatshirt duplicity sports bra.
 license revenues increased $ 5. million to $ 9. million 2005 4. million 2004.
 distribution volume growth new product offerings.
 gross profit increased $ 40. 5 million to $ 135. 9 million 2005 95. million 2004.
 increased 180 points to 48. 3%. 2005
 70 point increase. license revenues 240 point increase lower product costs supplier discounts 50 decrease customer incentives demand forecasting inventory management 70 decrease higher handling costs overhead costs quick-turn make-up shop.
 expenses increased. million. $ 100. million 2005 70. million
.
 marketing costs increased $ 8. million to $ 30. million 2005. 2004
 increased advertising costs media campaign marketing salaries in-store fixture program.
revenues marketing costs. 9%. % 2005. 6%. 6 2004 costs.


american tower corporation subsidiaries financial statements 2014 assets liabilities interest rate swap agreements 31 2006 first half 2007.
 paid $ 8. million treasury rate lock agreement 31 2008.
 additional interest expense 10-year term.
 received $ 3. 1 million cash settlement ten interest rate swap agreements $ 1. 4 billion cash flow hedges 2007.
 settlement reduction interest expense five-year period.
 received $ 17. million cash thirteen interest rate swap agreements $ 850. million not cash flow hedges.
 gain income consolidated statement operations december 31 2007.
 income derivative financial instruments.
 deferred loss settlement treasury rate lock net tax $ -4332 $ -4901
 deferred gain settlement interest rate swap agreements securitization
losses interest rate swap agreements tax
 2008 2007 company recorded net loss $ 15. 8 million $ 3. 2 million tax provision $ 10. 2 million $ 2. million loss value interest rate swaps cash flow hedges reclassified $ 0. 1 million $ 6. 2 million income tax $ 2. million $ 3. million results operations.
.
 determines values financial instruments fair value hierarchy.
 maximize observable inputs minimize unobservable inputs.
 standard three levels inputs fair value.
 1 quoted prices active markets assets.
 available-for-sale securities treasury securities.
 2 observable inputs quoted prices similar assets inputs.


tables reconciliation ending balances measurements inputs 2017 2016.
 january 2017 assets settlements december 31 2017.
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 investments strategies.
 allocation.
 allocations allocation.
.
strategies assets benefits include target allocations asset classes returns diversification liquidity.
 2012 de-risking strategy american water pension plan volatility.
 revised asset allocations matching characteristics fixed-income assets liabilities.
 postretirement liabilities.
 2017 increased exposure liability-driven investing fixed-income allocation to 50% 40% volatility from interest rates.
 2012 de-risking strategy medical bargaining trust.
 2017 asset-liability study medical trend inflation outpaced consumer price index 2% 20.
 equity exposure to 30% fixed-income from 80% to 70% 70 %.
 conducted asset-liability study post-retirement non-bargaining medical plan.
 allocation adjusted equity allocation 70% to 60% fixed- income allocation 30% to 40%.
post-retirement medical plan equity allocation reduced benefits non-union participants liabilities.
 changes 2018.
 company engages third party managers assets.
 outside asset class.
 strategy.
 investment management agreements performance attribution analysis strategy.
 futures options adjust portfolio investment policy.


includes shares repurchased program tendered exercise price tax withholding employee stock options.
 shareowner return performance graph securities exchange commission future filing securities act 1933 act 1934.
 graph five-year comparison shareowners 2019 returns class b common stock s&p 500 index dow jones transportation average.
 quarterly stock price reinvested dividends assumes $ 100 invested december 31 2004 s&p 500 index dow jones average common stock.
 five year cumulative return $ 40. 60. 80. 100. 120. 140. 160. 2004 20092008200720062005 500.
 parcel service. 100. 89. 91. 87 70. 75.
&p 500 index 100. 104. 121.
 jones average. 111. 122.97. 115.


payments transactions cards visa largest retail electronic payments network.
 chart compares network payment network competitors 2009 payments transactions cards billions millions visa.
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 2793 $ 4423.
 payments volume billions transactions cards millions
. 2793 4423.
 mastercard 2454.
 613.
.
.
.
.
 february 3 april 28 2010.
 figures total payments cash volume visa electron interlink brands.
.
 payments volume dollar amount purchases cards visa electron interlink brands.
 payments cash volume.
data reported quarterly visa clients subject verification.
 update information.
 mastercard american express jcb diners club report 946 april 2010.
 consumer commercial credit debit prepaid cards.
 figures.
 dollars.
 mastercard excludes maestro cirrus.
 american express third party issuers.
 jcb april 2008 march 2009.
.
 diners club 12 months november 30 2009.
 report 942 february 2010.
 third party issuers.
 note 15 disclosures financial statements 8.
 working capital requirements payments settlement liquidity requirement.
.
 receivables outstanding two business days.
 working capital uninterrupted daily settlement.
 daily net settlement receivable balances $ 129 million highest balance $ 386 million.
.
 quarter 30% operating revenues.


51 98 consolidated financial statements ball corporation subsidiaries 3.
 acquisitions january 1 2007.
 purchase results included financial statements since march 27 2006.
 march 2006 acquired north american plastic bottle container assets alcan $ 184. million.
 assets two manufacturing plants.
 one canada equipment assets alcan.
 strengthens plastic container business complements food container business.
 manufactures sells polypropylene plastic bottles food pet plastic bottles.
 operations plastic 2006.
 accounted purchase results included financial statements since 2006.
 summary net assets acquired.
 preliminary values.
 valuation consolidation integration vary.
 final valuations first quarter 2007.
 engaged third party experts assets liabilities inventory property plant equipment intangible assets post-retirement obligations.
.
.
.metal household products plastic
 $.
 property equipment 165. 73. 239.
 358. 53. 411.
 intangibles 51. 29. 80.
 inventories receivables 218. 40. 259.
 liabilities refinanced debt -176. 176. -188. 188.
 assets acquired $ 617. $ 184. 802.
 customer relationships acquired technologies valuable intangible assets valuation 20 years.
.
 purchase goodwill intangible assets tax deductible.
.
 acquisition asset purchase goodwill intangible assets deductible.
.


jpmorgan chase. annual report 219 note 13 2013 securities financing resale repurchase borrowed finance firm inventory positions short positions accommodate 2019 financing needs settle securities obligations.
 agreements collateralized financings balance sheets.
 resale repurchase carried plus accrued interest.
 borrowed loaned cash collateral.
 resale repurchase agreements counterparty reported net basis.
 fees recorded interest income expense.
 firm elected fair value option financing agreements.
 4 pages 187.
 reported purchased loaned borrowed sheets.
 agreements interest accruals recorded interest income expense changes fair value principal transactions revenue.
 financial instru derivatives changes fair value reported principal transactions revenue.
table details firm 2019s securities financing agree ments collateralized financings.
 millions
 securities purchased resale $ 222302 195328
 borrowed 123587
 sold repurchase 262722 245692
 loaned
 resale agreements $ 20. 3 billion $. 5 billion 2010 2009.
 securities borrowed $ 14. billion $ 7. billion.
 repurchase agreements $ 4. 1 billion $ 3. 4 billion.
 amounts reduced $ 112. 7 billion $ 121. 2 billion 31 2010 2009.
 jpmorgan chase 2019s policy possession securities purchased borrowed.
 monitors market value securities requests additional collateral returns.
 margin levels established counterparty collateral declines default.
jpmorgan chase master netting collateral resale securities liquidate securities customer default.
 credit risk mitigation practices reserves credit impairment december 31 2010.
 assets collateral securities financing note 31 pages 280 2013 281.


earnings $ 696. 9 million from foreign subsidiaries reinvested abroad not repatriated states.
 no domestic federal state deferred income taxes.
 distribution dividends subject to.
 income taxes withholding taxes.
.
 domestic federal income tax liability.
 valuation allowance against deferred tax assets.
 changes valuation allowance may 31 2015 2014 summarized.
 may 31 2013 -28464
 foreign loss carryforwards
 31 2014
 2015
 operating loss carryforwards of foreign subsidiaries $ 12. 4 million.
 loss carryforwards $ 19. 8 million expire may 2017 2033 if not utilized.
 capital loss carryforwards.
 subsidiaries $ 4. 7 million expire if not utilized by may 31 2017.
tax credit carryforwards $ 8. 4 million 31 2015 expire 2017 2023 not utilized.
 conduct business globally file tax returns.
 federal state foreign jurisdictions.
 subject examination taxing authorities.
 fourth quarter 2015 concluded tax positions foreign jurisdiction $ 65. 6 million sustained.
 liability deferred tax assets eliminated.
 uncertain tax positions examination jurisdiction.
 likelihood increased.
 final closure notice no adjustments taxable income tax returns 2010 through 2013.
 unrecognized tax benefits settled.
 no state income tax examinations 31 2008.
 federal tax prior 2012 united kingdom federal income tax 31 2013.
.
 2015 10-k annual report


ace limited subsidiaries premiums years december 31 2008 2007 2006 millions.
 dollars amount ceded amount percentage assumed.
 december 31 2007 2006 millions. dollars ceded
 2008 $ 16087 $ 6144 $ 3260 $ 13203 25%
 2007 $ 14673 $ 5834 $ 3458 $ 12297 28% 28 %
 2006 $ 13562 $ 5198 $ 3461 $ 11825 29% 29 %


relative percentages operating companies income loss segment.
 2016 2015 2014
 smokeable products 86. 2%. 2 % 87. 4%. 4 %. 2%. 2 %
 smokeless products 13. 1 12. 8 13. 4
 1. 8 7
 -1. 1. -2. 2. 3.
 100. 0%. 0 %. 0%. 0 %. 0%. 0 %
 income note 16.
 operating results.
 financial condition results annual report form 10-k.
 tobacco altria group. operating companies pm usa usstc subsidiaries.
 sales distribution consumer engagement services.
. smokeable tobacco products cigarettes machine made large cigars smokeless tobacco usstc innovative tobacco products e-vapor.
pm usa largest cigarette company cigarette shipment volume 122. 9 billion units 2016 decrease 2. 5%. 2015.
 marlboro principal largest-selling 40 years.
 sherman sells super-premium cigarettes.
 middleton manufacture machine-made large cigars pipe tobacco.
 sources cigars.
 shipment volume 1. 4 billion units 2016 increase 5. 9%. 2015.
 black & mild principal cigar brand.
 sources cigars sells cigars.
 smokeless tobacco leading producer marketer moist smokeless tobacco.
.
 manufactured sold.
 shipment volume 853. 5 million units 2016 increase 4. 9%. from 2015.
 tobacco mark e-vapor developed products.
 overseas.
-vapor.
 acquired e-vapor business green smoke.
affiliates smoke selling e-vapor 2009.
 note 3.
 financial statements item 8 3.
 december 2013 altria group. subsidiaries agreements philip morris international.
. exclusive license sell e-vapor products outside states. sell two heated tobacco platforms.
 july 2015.
 expansion strategic framework pmi joint research development technology-sharing agreement.
. develop e-vapor products states. outside.
 exclusive technology licenses technical information sharing cooperation scientific assessment regulatory engagement approval e-vapor products.
 fourth quarter 2016 pmi submitted modified risk tobacco product application electronically heated tobacco product united states food drug administration pre-market tobacco application first quarter 2017.
 fda.
. exclusive license sell tobacco product united.
raw materials altria group. subsidiaries sell wholesalers armed services.
 market tobacco competitive brand recognition loyalty quality taste price innovation marketing packaging distribution.
 promotional activities


cross-border outstandings defined by bank regulatory rules payable by foreign countries regardless currency obligations.
 of deposits loan lease financing investment securities.
 risk conditions repayment obligations foreign exchange.
 outstandings to 1% 1 % ) of total assets december 31.
 united kingdom
 australia
 canada
 germany
 represented 5% 12% ( 9 % ) of total assets as of december 31 2008 2007 2006.
 cross-border outstandings to countries between. 75%. 1% ( 1 % ) of assets at 2008 to $. billion.
 no cross-border outstandings to countries between. 75%. and 1% ( 1 % ) of assets as december 31 2007.
cross-border outstandings to countries. 75%. 1% 1 % assets at december 31 2006 $ 1. 05 billion.
 economic management metrics capital risk profile regulatory requirements financial flexibility future initiatives.
 objective strong capital base financial flexibility growth cash management protection against loss depositors creditors.
 maintain optimal level capital risk attractive return shareholders short long term obligations regulatory requirements.
 capital management focuses on risk exposures capital position regulatory capital requirements evaluations credit rating agencies.
 capital committee oversees capital capital adequacy targets.
 primary regulator state street bank federal reserve.
 minimum capital requirements federal deposit insurance corporation improvement act


doubtful accounts.
 2010 2008
 balance year $ 160 $ 133 $ 86
 54 65
 written off -13
 end year $ 185 $ 160 $ 133
 discontinued operations fourth quarter 2009 schlumberger net $ 22 million charge customs assessment drilling contingencies businesses.
 consolidated statement.
 first quarter 2008 gain $ 38 million resolution contingency business.
 consolidated statement.


capital losses 2015 $ 184. million.
 102. million-temporary impairments $ 45. 6 million losses value re-measurements $ 36. 3 million losses.
 2014 gains $ 84. million 121. 7 million gains re $ 1. 9 million $ 39. 5 million impairments.
 2013 gains $ 300. 2 million 258. 9 million re-measurements $ 42. 4 million gains 1. million-temporary impairments.
 cash invested assets $ 17. 7 billion 2015. fixed maturities. investment. equity securities. other invested.
 average maturity 4. years overall duration 3. years
december 31  2015 company direct investments real estate mortgages derivative investments equity index option contracts securities issuers cash flow difficulty debt payments.
 investment portfolio includes commercial mortgage-backed securities book value $ 264. 9 million market value $ 266. 3 million.
 securities 70% december 31 2015 market value rated aaa by 2019s services.
 90% value rated investment grade.
 table reflects investment results.
 average investments investment income effective yield net unrealized net capital gains
 2015 $ 17430. 8 $ 473. 8 2. 72%. $ -184. 1. $ -194.
 2014  16831. 9 530. 6 3. 15%. 84.
 2013 16472. 5 548.3. 33%. 33 % 300. -467
 16220. 600. 3 70%. 70 % 164. 161
 15680. 620. 95%. 95 % 6. 106.
 capital gains yield gains 17430. 473. 72%. 72 % 184. 194 16831. 530. 15%. 15 % 84. 16472. 548. 33%. 33 % 300. 16220. 600. 70%. 70 % 164. 15680. 620. 95%. 95 % 6. 106 values investments.
 bonds stocks market.
.
 capital gains.
 2015 2014 2013 2012 2011 re-measurements $ 45. 6 121. 7 million 258. 9 million 118. 1 4. 4 million


board approved capital investment exploration budget $ 5882 million 2014 expenditures $ 5777 million.
 segment.
.
 north america e&p 4241 72% 72 %
 international e&p 21% 21 %
 oil sands mining 294 5%
 5777 98% 98 %
 corporate 2% 2 %
 capital investment exploration budget $ 5882 100%
 growing profitable reserves production.
 accelerating drilling.
 eagle ford bakken oklahoma resource basins 60 percent budget.
 majority drilling.
 drill more wells.
 capital budget facility construction recompletions.
 spending stable 23 percent budget development.
 plan drill 8 to 10 exploration wells 10 percent budget projects.
 item.
.
discussion includes statements spending investment exploration development 2014 budget accelerated rig drilling activity eagle ford bakken oklahoma resource basins future drilling activity.
 factors include pricing supply demand hydrocarbons natural gas capital regulatory constraints timing production drilling rig availability materials labor risks construction hazards geological operating economic considerations.
 affected by government approvals permits.
 by data size reservoirs economic recoverability future drilling success production experience.
 results differ from.
 expect increase.
 sales volumes 30 percent 2014 2013.
 production growth 4 percent 2014.
.
 portfolio divestitures exceeded goal divesting $ 1. billion $ 3. billion 2011 2013.
 closed for approximately $ 3. 5 billion divestitures $.1 billion sales angola assets.
 block 31 closed february 2014 32 first quarter 2014.
 december 2013 market assets north sea.
 portfolio higher margin growth increase production growth rate.
 forward-looking percentage growth rate production sale block 32 possible sale.
 assets.


rate derivatives.
 floating rate debt 2008 entered three interest rate swap contracts cash flow hedges hedging interest fluctuations benchmark rate.
 approved plan refinance loan 2011 $ 8. 6 million loss ineffectiveness swap.
 collateralization counterparties.
 cash adjusted daily.
 february 2010 forward starting interest rate swap contract cash flow hedge interest fluctuations benchmark rate fixed rate debt march 2010.
.
 foreign currency derivatives.
 purchase bm&fbovespa stock 2008 purchased put option hedge rate fluctuations.
.
 lehman brothers financing.
 counterparty option.
 2008 lehman brothers.
 filed bankruptcy code.
 terminate put option agreement.
 march 2010 recognized $ 6. million gain instruments settlement lehman bankruptcy proceedings.
.
capital stock shares outstanding.
 table information.
 december 31 2010
 shares authorized 1000000
 a common stock 66847 66511
 b-1. 6.
 b-2. 8.
 b-3.
 b-4 common stock.
 cme group no shares preferred stock.
 trading rights.
 members cme cbot comex own lease trading rights trading floors discounts fees right vote exchange matters rules cme group documents.
 cme b common stock membership division trading.
 trading right separate asset not common stock.
 shareholders retain representation board directors approval rights.
 trading rights cbot evidenced memberships.
 members rights elect board directors receive dividends distributions.
 company required 10 cbot directors until 2012 annual meeting.


tax returns examination foreign jurisdictions.
 include germany italy switzerland.
 possible audits twelve months impact results operations financial position.
.
 2 million shares participating preferred stock authorized issuance none outstanding december 31 2007.
 numerator basic diluted earnings per share net earnings.
 basic earnings weighted average shares.
 diluted earnings shares dilutive stock options equity awards.
 reconciliation weighted average shares basic diluted computations years ending december 31.
 shares net earnings per.
 dilutive stock options.
 diluted earnings.
. dilutive stock options. diluted earnings. year december 31 2007. million options purchase shares common stock not included diluted earnings per share prices greater than average market price common.
years 2006 2005 7. 6 million 2. 9 million options not included.
 2005 authorized stock repurchase $ 1 billion 2007.
 2006 additional repurchase $ 1 billion 2008.
 acquired 19345200 shares $ 1378. 9 million.
.
 design develop manufacture market reconstructive orthopaedic implants joint spinal trauma products.
 healthcare services.
 revenue less than 1 percent total net sales.
 manage operations three segments pacific.
 basis reportable segment information.
 management evaluates segment performance profit operations corporate expenses share-based compensation settlement acquisition inventory intangible asset amortization.
 operations research development engineering medical education brand management corporate legal finance human resource.
 manufacturing logistics.
 intercompany transactions eliminated.
management reviews accounts receivable inventory property plant equipment goodwill intangible assets segment u. s puerto rico manufacturing operations logistics corporate assets.
.
 consolidated financial statements


stock performance graph shareholder return series a c compared with 500 stock index peer group cbs news scripps network. time warner. viacom.
 walt disney.
 assumes $ 100 invested september 18 2008 s&p 500 index peer group companies reinvestment dividends september 18 2008 december 31 2009 2010 2011.
 cash borrowings revolving credit facility future financing transactions.
 management purchase shares open market prevailing prices securities laws requirements subject to stock price business conditions market conditions.
 repurchase program expiration date.
 funded cash.
 no repurchases series a b three months december 31 2011.
.
 2009 2010
 $ 102. $ 222. $ 301. $ 296.
 $ 78. $ 162. $ 225.217.
 83. 165. 75. 235.
 74. 86 92. 104.
 68. 79 100. 70 121. 138.


entergy corporation financial statements sale leaseback transactions waterford 3 lease 1989 sold leased. 3%. interest waterford 3 $ 353. 6 million.
 lease 28 years.
 lessors financed sale-leaseback waterford 3 lease bonds.
 lease payments debt.
 1994 repurchase. interest.
 issued $ 208. 2 million non-interest first mortgage bonds collateral equity.
 1997 lessors refinanced bonds lower interest rates reduced annual lease payments.
 assume outstanding bonds withdraw lease.
 default loss adverse events. failure maintain equity capital 30% adjusted capitalization fixed charge coverage ratio 1. 50.
 december 31 2003 total equity capital. 82%. adjusted capitalization fixed charge coverage ratio 2003 4.
december 31 2003 entergy louisiana future minimum lease payments 7. 45%. waterford 3 sale leaseback transactions long-term debt.
 2004 31739
 2005 14554
 2006 18262
 2007 18754
 2008 22606
 366514
 472429
 209895
 minimum lease payments $ 262534
 gulf 1 lease obligations 1988 system energy sold 11. 5%. interest grand gulf 1 $ 500 million.
 leased back 26-1/2 years.
 lease.
 lease.
 sale-leaseback financing transaction financial statements.
 expenses interest lease obligation


consolidated financial statements 2014 years 2007 2006 2005 millions share.
 impairment debt equity securities 2005 bio-fuels malt venture impaired recognized pre-tax impairment charges $ 71. 0 million $ 65. 6 million after tax.
 2006 additional impairment charges $ 75. 8 million $ 73. 1 million after tax malt foreign declines proceeds.
.
 impairments determined recoverability proceeds.
 2007 malt venture $ 24 million $ 7 million.
 pre-tax gain $ 4 million tax benefit $ 4 million.
 equity earnings.
 2006 subordinated notes $ 150 million accrued interest $ 50. 4 million swift foods.
 2005 swift foods capital structure.
 fair value subordinated notes impaired.
company determined notes impaired quarter 2006 believed temporary.
 reduced carrying value $ 35. 4 million recorded after-tax charges $ 21. 9 million second quarter 2006.
 conditions impairment.
 reduced carrying value $ 117 million recognized impairment charges $ 82. 9 million selling administrative expenses reclassification after-tax charges $ 21. 9 million.
 second quarter 2007 closed sale $ 117 million no additional gain loss.
.
.
 raw materials packaging 1154. $ 985.
 work progress.
 finished goods.
 supplies.
. 2130.
 packaging grain fertilizer crude oil trading merchandising inventory $ 691. million $ 542. 1 million end fiscal 2007 2006.


equity compensation plan information table presents equity securities as of december 31  2015.
 number securities issued options warrants rights weighted-average exercise price securities remaining future issuance excluding securities plans approved by 1424356 $ 33. 90 4281952 plans not approved.
 number securities issued rights weighted-average exercise price number securities remaining future issuance excluding
 plans approved by holders 1424356 $ 33. 90 4281952
 plans not approved
 1424356 $.
 includes grants under huntington ingalls industries.
 2012 long-term incentive stock plan approved 2 ingalls.
 plan approved.
 533397 subject to stock options 54191 stock rights granted under 2011 plan.
includes 35553 stock rights 10279 restricted 790936 performance rights 2012 plan target performance.
 weighted average price 533397 stock options.
 no awards plans approved security.
 13.
 relationships transactions director independence proxy statement 2016 annual meeting 120 days fiscal year.
 14.
 principal accountant fees services 2016 annual 120 days fiscal year.


financial derivatives manage interest rate market credit risk reduce effects income value cash flows.
 enter derivatives risk management.
 derivatives contracts little investment cash asset notional amount underlying.
 notional amount not exchanged not recorded balance sheet.
 payments.
 interest rate security price credit spread.
 residential commercial real estate loan commitments derivative instruments.
 table notional amounts gross fair values derivative assets liabilities gross derivatives.
 millions notional/contractamount assetfairvalue liabilityfairvalue
 derivatives hedging instruments $ 49061  $ 1261  $ 186  $ 36197 $ 1189  $ 364
 derivatives not 291256  3973  3841  345059  3604  3570
derivatives $ 340317 $ 5234 $ 4027 $ 381256 $ 4793 $ 3934
 included assets.
 liabilities.
 derivatives fair value.
 balances net master netting agreements cash collateral.
 rights setoff offsetting counterparty credit risk contingent features section.
 risk participations protection credit derivatives section.
 nonperformance risk credit risk estimated net fair value.
 note 1 accounting policies.
 hedging instruments interest rate foreign exchange risk.
 hedging risks fair value future cash flows net investment foreign subsidiary.
 hedges allows gains losses recognized income statement hedged items affect earnings.
 pnc financial services group.
 2013 form 10-k 187


holdings.
 2013 10-k report four tranches senior notes $ 250 million 1. 4 percent 2014 $ 500 million. 625 percent 2019 $ 300 million 3. 375 percent 2021 $ 500 million 5. 75 percent 2039.
 interest payable may 30 november 30 until maturity.
 estimated fair value notes december 31 2013 $ 1649. 5 million.
 redeem senior notes redemption price equal 100 percent principal amount present remaining scheduled payments principal interest discounted redemption semi-annual treasury rate 15 basis points 2014 20 2019 2021 25 2039.
 pay accrued unpaid interest redemption date.
 interest rate swap agreements value fixed- rate obligations 2019 2021.
 13.
 november 2014 issue new pay $ 250 million owed.
 borrow senior credit facility pay.
refinance senior notes classified long-term debt december 31 2013.
 uncommitted credit facilities $ 50. 7 million.
 interest rate long-term borrowings 3. percent.
 31 2012 1. 3 5 percent.
 paid $ 68. million $ 67. 8 million $ 55. million interest 2013 2012 2011.
.
 income gains losses excluded net earnings.
 reclassified.
 foreign currency translation adjustments unrealized gains losses cash flow hedges-sale securities amortization prior service costs defined benefit plans.
 adjustments reclassified net earnings sale liquidation.
 gains losses cash flow hedges reclassified.
-for-sale securities before maturity.
 hold securities until maturity amortized cost reclassification adjustments net earnings.
defined benefit plans reclassified periods.
 inventory labor costs.
 note 14.
 table changes components foreign currency translation hedges unrealized gains securities.
 cash flow hedges unrealizedgains
 december 31 2012 $ 445. 5 $ 4. 1 0. 4 -106. 1.
 -44. 4. 33. 30.
 -4. 4.
 december 31 2013 $ 401. 1 $ 33. 0. -67. 6.


2018 form 10-k estimate 5% annual revenue.
 expenditures recurring items.
 income tax payments $ 425 million to $ 475 million 2019.
 december 31 2018.
 based estimates assumptions.
 obligations vary.
 payments less 1 - 3years 4 - 5years years
 debt capital lease obligations $ 6989 $ 942 $ 562 $ 1272 $ 4213
 estimated interest payments 3716  239  473 404
 operating leases 846
 purchase obligations 1507 1388
 $ 13058  $ 2755 $ 1383 $ 1833 $ 7087
 expected cash payments debt capital lease obligations.
 deferred issuance costs unamortized discounts premiums.
 payments interest excluded.
debt capital lease obligations $ 896 million payable ge affiliates.
 no fixed payment schedule payable less than one year.
 2 expected cash payments interest long-term debt lease obligations.
 3 future minimum payments noncancelable operating leases one year.
 excluded renewal options.
 purchase obligations include expenditures capital assets 2019 agreements goods services enforceable quantities price provisions timing.
 cash outflows estimates cash settlement.
 $ 597 million uncertain tax positions interest penalties excluded contractual obligations table.
.
 income taxes.
 defined benefit pension post-retirement benefit plans.
.
 2018 contributions paid benefits $ 72 million anticipate funding $ 41 million 2019.
 pension change estimate contribution figures after 2019.
.
 employee benefit plans.
-balance sheet arrangements business entered surety bonds letters credit bank guarantees totaled $ 3. 6 billion december 31 2018.
 practicable estimate fair value.
 effect financial statements.


mississippi.
 financial revenue fuel expenses gas power expenses regulatory charges.
 net revenue 2010 2009.
.
 2009 revenue $ 536.
 volume/weather.
.
 2010 revenue $ 555.
 increase 1046 gwh 8% electricity usage favorable weather residential sector.
 operating revenues power expenses regulatory charges increased increase $ 22 million power management revenue higher rates volume/weather variance revenue decrease $ 23. million fuel cost recovery revenues.
 power expenses decreased deferred fuel expense average market price purchased power increased area demand.
 regulatory charges recovery costs power management.
 operation maintenance expenses decreased $. million decrease compensation benefits costs incentive compensation stock option expense sale $ 4. million surplus oil inventory.
 offset increase $.9 million legal expenses deferral 2010 litigation.
 taxes increased ad valorem taxes higher 2011 assessment offset higher capitalized property taxes.
 depreciation amortization expenses plant service.
 interest decreased funds power.


corporation subsidiaries financial statements.
 accounting policies property equipment recorded cost.
 depreciation amortization estimated lives.
 landimprovements
 buildings
 furniturefixtures equipment
 improvements leased properties amortized lease term life.
 impairment long-lived assets evaluates carrying value operating performance future cash flows appraised values.
 reviews impairment stores two years cash flows negative.
 impairment carrying value exceeds undiscounted future cash flows lease.
 estimate historical operations future profitability.
 asset impaired impairment difference carrying value estimated fair value.
 future cash flows risk-free rate.
 assets adjusted fair value less cost sell book value.
 impairment charges&a expense $ 5. million 2009 $ 4. million 2008.2 million 2007 reduce value stores assets insufficient sales excessive costs negative cash flows.
 capitalized interest operations borrowed funds construction property equipment.
 no interest costs capitalized 2009 2008 2007.
 amortizes lives indefinite.
 assets tested impairment undiscounted cash flows impaired written fair value discounted cash flows appraised values.


contingent consideration $ 13. 8 million.
 cash payments former equity holders lyric technological product development milestones june 2011 2016.
 estimated fair value.
 changes recognized operating income.
 october 29 2011 no contingent payments fair value $ 14. million.
 allocated purchase price assets acquired liabilities assumed $ 12. 2 million ipr&d $ 18. 9 million goodwill $ 3. 3 million net deferred tax liabilities.
 goodwill future technologies.
.
 deductible tax.
 obligated pay royalties former equity holders revenue sale products licenses $ 25 million.
 payments post-acquisition compensation expense.
 october no royalty payments made.
 recognized $ 0. 2 million acquisition-related costs third quarter 2011.
 included operating expenses consolidated statement.
company provided results integrant audioasics lyric.
 included results acquisition in consolidated statement income.
.
 deferred compensation plan investments analog devices.
 classified trading.
 october 29 2011 30 2010.
 money market funds $ 17187 $ 1840
 mutual funds
 investments $ 26410 $ 8690
 fair values based on market quotes 29 2011 2010.
 adjustments recorded operating expenses.
 gains losses not material 2011 2010 2009.
 recorded liability for owed participants.
 investments available benefits.
 insolvent investments available unsecured creditors.
.
 other equity securities long-term investments.
 fair value based market quotes cost.
 adjustments fair value available-for-sale recorded.
 consolidated financial statements 2014


debt restructurings loan concession borrower financial difficulties.
 loss mitigation activities include rate reductions principal forgiveness postponement amortization extensions minimize loss avoid foreclosure repossession.
 from borrowers discharged liability not loan obligations.
 principal charged off.
 not result full principal interest potential incremental losses.
 factored into estimate.
 defaults affected future economic conditions.
 loan until repaid collateral charged off.
 reserves $. 5 billion $. 6 billion at december 31 2013 2012 total tdr portfolio.
 70 summary debt restructurings millions.
.
.
.
 consumer lending $ 2161 2318
 commercial lending
 tdrs 2739
 nonperforming 1511
 credit
accruing loans six months performance restructured terms excluded from nonperforming loans.
 borrowers discharged not obligations not returned accrual status.
 table 71 loans classified tdrs change recorded investments tdr classification 2013 2012 2011.
 tdr concessions.
 principal forgiveness includes accrued interest.
 write down investment charge-off.
 rate reduction reduced interest rate interest deferral.
 future interest income.
 category includes consumer borrowers discharged obligations postponement/reduction scheduled amortization contractual extensions consumer commercial borrowers.
 multiple concessions loan.
 commercial portfolio.
 principal forgiveness prioritized inclusion.
 principal forgiveness lower interest rate postponement amortization.
 second rate reduction.
 postponement amortization.
concessions granted consumer loan discharge personal liability bankruptcy pnc prioritized.
 loan concessions priority commercial loan portfolio.
 pnc financial services group.
 2013 form


hologic  inc.
 consolidated financial statements cytyc merger assumed restructuring plans reduce operating expenses consolidating mountain view california operations costa rica massachusetts acquisitions march 2007.
 assumed liability $ 4658.
 twelve months september 27 2008 additional restructuring costs retention.
 third wave acquisition.
 assumed liability termination benefits $ 7509.
 additional restructuring costs.
 costs paid fiscal 2009.
 recorded liability cytyc merger termination employees minimum inventory purchase commitments contractual obligations business discontinued.
 twelve months september 27 2008 incurred $ 6. 4 million expense resignation chairman board directors not included table.
 changes restructuring twelve months 2008 termination benefits.
 beginning balance $ 2014 $ 105
acquired october 22 2007
 wave july 24 2008 7029
. 95-3 1820
 adjustments -382 -270
 payments -817
 balance $ 882 $ 1309
 acquisition aeg elektrofotografie r2 technology.
 suros surgical.
 terminate employees.
 liability employee severance $ 3135.
 95-3.
 september 29 2007 $ 105 paid.
 full payment remaining liability september 27 2008.
 advertising.
-response.
 trade shows conventions $ 15281 $ 6683 $ 5003 2008 2007 2006 marketing consolidated statements operations.


2022 higher 2017 sales volumes cost savings restructuring productivity improvement initiatives growth investments 2016 currency exchange rates offset product development sales marketing growth investments 60 points profit margin impacted by 2022 dilutive effect acquired businesses 20 points 2016 price increases contributed 0. 3%. sales growth sales.
 transportation technologies grew high-single digit 2016 due strong demand dispenser payment point-of-sale systems environmental compliance vehicle fleet management products offset weaker demand compressed natural gas.
 reduced emv-related demand indoor point-of-sale solutions.
 demand increased dispensers payment systems.
 sales united states asia western europe.
 sales automation specialty components declined low 2016.
 improvement demand second 2016.
2016 demand declined engine retarder north american heavy-truck market offset growth china europe.
 demand declined medical defense markets offset increased demand industrial automation china.
 sales declined north america offset growth western china.
 franchise distribution grew mid-single digit due increases franchisees growth demand professional tool storage united states.
 offset declines wheel service equipment sales.
 operating profit margins increased 70 points 2015.
 higher 2016 sales volumes pricing improvements cost savings restructuring productivity improvement tradenames costs growth investments product development marketing costs restructuring currency exchange rates 65 points effect acquired businesses 5 points cost sales gross profit.
 2017 2016 2015
 sales $ 6656. 6224.
 cost sales -3357.3178.
 3298. 5 3032. 3000.
 49. 6%. 6 % 48. 7%. 7 %. 6%. 6 %
 increase cost higher volumes rates savings


cgmhi committed long-term financing banks.
 december 31 2010 drawn $ 900 million $ 150 million guaranteed by citigroup.
 bank terminate one-year notice.
 issues fixed variable rate debt.
 uses derivative contracts interest rate swaps convert.
 maturity structure corresponds.
 contracts foreign exchange impact debt.
 weighted average interest rate long-term debt 3. 53%. 2. 78%. derivative contracts.
 annual maturities long-term debt debt 2010 2009 includes $ 18131 million $ 19345 million junior subordinated debt.
 business trusts delaware.
 issuing trust securities investing proceeds in deferrable interest debentures activities.
 citigroup redeem securities.
 not to redeem purchase. 50%. enhanced trust preferred securities citigroup before september 15 2056.45% 6. 45 % ) securities citigroup capital xvi before december 31 2046 6. 35%. 35 % xvii before march 15 2057 6. 829%. 829 % fixed xviii before june 28 2047 7. 250%. 250 % ) xix before august 15  2047 7. 875%. 875 % xx before december 15 2067 8. 300%. fixed rate xxi before december 21  2067 conditions exhibit 4. 03 september 18 2006. 2. august 17. november 27 2007. december 21.
 agreements benefit holders citigroup 2019s 6. 00%. junior deferrable interest debentures due 2034.
 citigroup owns voting securities subsidiary trusts.
subsidiary trusts assets operations cash flows issuance administration repayment.
 obligations guaranteed citigroup.
 millions 2011 2013 2014 2015
 $ 35066 38280 17875
 non-bank 15213 25950 18381
 company 21194 30004 21348 19096 12131 88171
 $ 71473 94234 37219 31903 21927


capital cash flows 2016 2015 2014.
 table summarizes cash flow operating investing financing millions.
 $ 1847. 8 $ 1679. 7 1529.
 investing -961. 2 961. 1482. -959. 959.
 financing -851. 851. 2 -239. 7 239. -708. 708.
 changes assets liabilities acquisitions divestitures decreased cash flow $ 205. 2 million 2016 $ 316. 7 million 2015 accounts receivable increased $ 52. 3 million timing billings $ 15. 7 million 2015.
 sales outstanding 38. 3 days 26. 25. 8 days deferred revenue.
 accounts payable decreased $ 9. 8 million $ 35. 6 million 2015 timing.
 cash obligations $ 11. million lower.
decrease cash capping closure post-closure obligations due payments 2015.
 cash remediation obligations $ 13. 2 million lower 2016 timing.
 cash income taxes $ 265 million $ 321 million 2016 2015.
 tax depreciation tax credits.
 cash interest $ 330. 2 million $ 327. 6 million.
 changes assets liabilities decreased cash flow $ 316. 7 million 2015 $ 295. 6 million 2014 accounts receivable increased $ 15. 7 million timing billings $ 54. 3 million 2014.
 sales outstanding 38 days 25 days.
 accounts payable increased $ 35. 6 million $ 3. 3 million due timing payments.


five-year performance comparison 2013 graph shareholder returns corporation peer group index dj trans s&p 500.
 assumes $ 100 invested common stock union pacific corporation december 31 2010 dividends reinvested.
 information historical not indicative future performance.
 purchases equity securities 2013 repurchased shares common stock average price $ 99. 16.
 table common stock repurchases fourth quarter 2015 shares purchased average price paid share plan maximum.
 oct. 1. 31 3247731 $. 3221153 56078192
. 2325865.
. 31 1105389. 1102754
 6678985 $ 88. 6646899
 shares purchased quarter 32086 shares employees stock option prices excess tax withholding obligations.
january 2014 authorized repurchase 120 million shares stock december 31 2017.
 open market.
 management discretion timing.


hologic.
 financial statements acquisition provides two annual earn out payments $ 15000 biolucent revenue targets.
 eitf issue.
 95-8 contingent consideration additional purchase price.
 goodwill increased.
 allocation purchase price preliminary estimates assets acquired liabilities assumed september 18 2007.
 gathering.
 purchase price allocation one year acquisition.
 allocation purchase price.
 tangible assets acquired 2007 $ 2800
 technology know how 12300
 customer relationship 17000
 trade name 2800
 deferred income tax liabilities
 goodwill
 estimated purchase price $ 73200
 intangible assets identified valued.
 customer relationship trade name technology how identifiable values.
 fair value determined income approach.
 customer relationship large base.
 trade name biolucent product.
technology represents marketable products products.
 deferred income tax liability acquired assets value adjustments inventory not deductible offset net operating loss $ 2400.
 2006 may 2006 acquired 100% voting stock aeg elektrofotografie gmbh related companies.
 results operations included financial statements.
 acquisition material business combination no pro forma financial information.
 aeg photoconductor materials electro photographic applications coating digital detectors.
 acquisition allows control detector manufacturing process


acquisition date first annual reporting period december 15 2008.
 new requirements statement.
 141 business combinations 2009.
 fasb issued financial accounting standards.
 noncontrolling interests financial statements.
.
 equity subsidiary parent.
 statement.
 accounting reporting standards deconsolidation.
.
 interests equity parent equity.
 consolidated net income parent noncontrolling interest separately.
.
 effective fiscal years december 15 2008 earlier adoption prohibited.
 statement.
 160 impact financial statements disclosures.
 statements based historical operating trends december 31 2007 reports.
 demand market conditions oil natural gas ngls 2008 similar 2007.
.
 amounts canadian operations converted.
 dollars average 2008 exchange rate $ 0. 98.
 dollar to $ 1. 00 canadian dollar.
january 2007 intent divest west african oil gas assets terminate operations equatorial guinea cote d 2019ivoire gabon.
 november 2007 agreement sell operations gabon $ 205. 5 million.
 finalizing purchase sales agreements obtaining government approvals remaining properties divestiture.
 optimistic complete sales first half 2008.
 west african revenues expenses capital reported discontinued operations 2008 financial statements.
 estimates exclude operations west africa.
 completed property acquisitions opportunity driven.
 estimates include financial operating effects property acquisitions divestitures 2008 west africa.
 oil gas ngl production 2008.
 combined production 240 to 247.
 92% reserves december 31 2007.
 estimates midpoint estimated range production.
.
.
.8 68 20
 canada 23 198 60
 international
 66 894 28


.
 equity level 1 traded exchanges valued closing prices last trading day.
.
 not traded trustee obtains quotes pricing vendor broker investment manager.
 categorized level 2 quotes 3 uncorroborated quotes.
 commingled equity funds valued net value.
 total value divided by shares outstanding.
 level 1 traded recognized exchange 2 corroborated market data. redeem.
 fixed income investments level 2 valued pricing models market data. bids quoted prices.
 categorized level 3 valuations inputs unavailable.
 trustee obtains pricing indicative quotes bid evaluations vendors brokers investment.
 private equity funds real estate funds hedge funds valued nav valuation models unobservable inputs.
 valuations determined general partners.
partners use valuation methodologies income market approaches.
 market approach transactions income approach future cash flows adjusted liquidity risk.
 hedge funds valued by administrators pricing sources securities.
 private equity real estate hedge funds categorized level 3 redeem investment.
 commodities traded active commodity exchange valued at closing prices last trading day.
 funding benefit pension plans determined erisa cas internal revenue code rules.
 2014 contributions $ 2. 0 billion.
 plan contributions 2015 2017.
 estimated future benefit payments employee service december 31 2014.
 benefit pension plans $ 2070 2150 2230
 retiree medical life insurance plans
 401 ( k ) features employees.
 match 2019 eligible contributions rates plan documents.
contributions 385 million 2014 383 million 2013 380 2012 majority common stock.
 plans 41. 7 44. 7 million shares 2014 2013.
 capital 1. 5 billion shares common stock 50 million preferred stock.
 316 million shares 314 million


results 2013 operating december 31 earnings return common equity goodwill.
 millions ratios 2004
 investment bank $ 3658 $ 2948 24% 24 % 18% 18 % 17% 17 %
 retail financial services 3427 2199
 card services 1274
 commercial banking 1007 608
 treasury securities services 1037
 asset wealth management 1216 681
 $ 10521  $ 8211 28% 28 % 17% 17 % 16% 16 %
 jpmorgan chase co.
 2005 annual report.
 parent company costs corporate staff technology operations allocations market prices one-time items.
 2005 refined cost allocation methodologies transparency consistency accountability.
 cost methodologies.
capital allocation business segment capital peer comparisons economic risk regulatory capital requirements.
 equity.
 merger capital allocated corporate.
 january 2006 refine methodology capital goodwill acquisitions.
.
 allocation goodwill impairment testing accounting estimates note 15 pages 81 2013 83 114 2013116 annual report.
 capital management section page 56 equity framework.
 credit reimbursement portfolio.
 reimbursement methodology revised pre-tax earnings cost capital.
 earnings allocated capital.
 tax-equivalent adjustments results reflect revenues.
 non-gaap financial measures page 31 annual report.
 business segment reporting methodology reflect.
 allocates income expense market-based methodologies.
 merger july 1 2004 allocation methodologies revised.
prior periods not revised methodologies not comparable third quarter 2004.
 firm assumptions methodologies reporting reclassifications segment reporting refinements may future.
 revenue sharing business segments share revenues.
-sharing agreements revised merger consistency.
 funds transfer pricing interest income expense interest rate risk exposures.
 allocation unique considers interest rate liquidity regulatory requirements.
 retain interest rate exposures approval.
 third quarter 2004 revised policies combined firms.
 expense allocation services support units allocated.
 actual cost usage.
 third quarter 2004 cost allocation methodologies heritage firms aligned consistency segments.
 expenses corporate functions technology operations ceased


institutional banking earned $ 1. 9 billion 2011 $ 1. 8 billion 2010.
 credit losses mortgage lower net interest income.
 clients cross sales expense discipline.
 asset management group earned $ 141 million 2011 $ 137 million 2010.
 assets $ 210 billion 2011 $ 212 billion 2010.
 provision credit losses noninterest income higher noninterest expense lower income.
 strong sales production high value clients referrals.
 growth assets noninterest income.
 residential mortgage banking earned $ 87 million 2011 $ 269 million 2010.
 noninterest expense lower net interest income loan originations higher sales revenue.
 blackrock earned $ 361 million 2011 $ 351 million 2010.
 increase revenue.
.
 $ 200 million 2011 $ 57 million 2010.
increase lower provision credit losses offset lower net interest income.
 earnings $ 376 million 2011 $ 386 million 2010.
 noncash charge redemption gain sale shares offset lower integration costs.
.
 income $ 3. 1 billion $ 3. 4 billion 2010.
 $ 324 million mortgage foreclosure expenses $ 198 million noncash charge redemption $ 42 million integration costs.
 $ 328 million after-tax gain sale gis $ million integration costs $ 71 million residential mortgage foreclosure expenses.
 impacted noncash reduction $ 250 million redemption.
 driven low interest rates slow economic growth new regulations.
 income.
 income $ 8700 $ 9230
 margin. 92%. 14%.
 assets yields liabilities funding.
2013 net income balance sheet 8 purchase accounting accretion 7.
 decreases net income margin 2011 purchase accounting accretion loans lower cash recoveries.
 loan balances low interest rate funding costs.
 pnc financial services group.
 2013 form 10-k


cumulative return lkq corporation nasdaq stock market. peer group.
 12/31/2007 12/31/2008/31/2009/31/2010/31/2011/31/2012
 lkq corporation $ 100 $ 55 143 201
 nasdaq market. index $ 100 $ 59 86 98
 peer group $ 100  $ 83 139 $ 187 $ 210
 stock performance information material rule 14a section 18 securities exchange act 1934 incorporated securities act 1933 1934.
 common stock equity compensation plans december 31 2012 item 12 annual report form 10-k incorporated.


sources uses cash millions cash flows years 29 30 31.
 292018 302017 312016
 cash operating activities $ 29432 $ 22110 21808
 investing -11239 -15762 -25817 25817
 financing activities 18607 -8475 -5739 ( 5739
 increase cash equivalents $ -414 -9748
 consolidated results analysis


consolidated financial statements.
 collateralized agreements financings purchased borrowed.
 financings repurchase loaned secured.
 firm transactions facilitate client activities invest excess cash acquire securities finance firm activities.
 agreements financings net-by legal right setoff.
 interest recognized included 201cinterest income expense.
 note 23 interest income expense.
 table carrying value resale repurchase agreements securities borrowed loaned transactions.
 millions december 2012 2011
 purchased 141334 187789
 borrowed2 purchased resell 187789 borrowed.
 resale repurchase agreements carried fair value.
 note 8 valuation techniques fair value.
.
 december 2012 2011 $ 38. 40 billion $ 47.62 billion securities borrowed $ 1. 56 billion $ 107 million loaned fair value.
 resale repurchase agreements resale firm purchases instruments cash resell price plus interest future date.
 repurchase firm sells instruments cash repurchase price plus interest future date.
 instruments include u. s.
 government federal agency investment-grade sovereign obligations.
 firm receives monitors market value delivers obtains additional collateral changes market value.
 requires collateral fair value equal carrying value assets consolidated statements financial.
 repurchase resale agreements transfer ownership accounted financing arrangements require maturity.
 201crepos to maturity sales.
 firm transfers security repurchase maturity date matches underlying security.
firm repurchase obligation relinquished control security accounts sale.
 no repos maturity.
 sachs annual report


short-term cash needs interest rates policy choices.
 majority cash invested mutual funds.
 treasury securities.
 government securities.
 exposure risk minimal.
 pension plan funded minimum contribution maximum tax deduction.
 $ 14. 1 million contribution 2011 funding goal.
 contribution return assets discount rate.
 deferred tax assets $ 18. 3 million $ 23. 8 million.
 unrealized losses stock compensation accrued expenses.
 long-term deferred tax liabilities $ 7. 8 billion $ 7. 6 billion 2010 2009.
 purchase intangible assets.
 long-term deferred tax asset $ 145. 7 million.
 unrealized capital loss brazil bm&fbovespa.
 threshold.
 partial valuation allowance $ 64.4 million unrealized capital loss gains.
 long-term deferred tax asset brazilian taxes $ 125. 3 million unrealized capital loss investment bm&fbovespa.
 full valuation allowance $ 125. 3 million-likely-than-not threshold loss.
 valuation allowances $ 49. 4 million additional unrealized capital losses investments.
 tax $ 19. 3 million deferred tax asset foreign net operating losses swapstream.
-likely than-not threshold losses.
 $ 19. 3 million deferred tax assets reserved.
 clearing firm deposit performance bond collateral.
 risk.
 collateral.
 cash bonds guaranty fund contributions balance sheets.
 deposits.
 balances bonds guaranty fund contributions fluctuate.
 december 31.
 performance bonds $. 5834
 guaranty fund contributions.
-margin arrangements 79.
 delivery. 34.
 4038. 5981.


2018 form 10-k unrecognized tax benefits change twelve months expiring statutes audit activity tax payments proceedings transfer decisions jurisdictions.
 december 31 2018 $ 96 million tax liabilities $ 1 million assets uncertain tax positions twelve months.
 business 120 countries subject income taxes jurisdictions.
 internal revenue examinations completed closed 2015.
.
 unresolved issues operations financial cash flows.
 provision income tax uncertainties.
.
 long-term incentive plan stock options equity awards employees directors.
 57. 4 million shares common stock authorized issuance 2027.
 46. 2 million shares stock available december 31 2018.
 stock-based compensation cost $ 121 million $ 37 million 2018 2017.
 measured date grant fair value recognized vesting period.
compensation cost determined awards reduced cost estimated forfeitures historical rates.
 estimated grant revised reflect forfeitures.
 no stock-based compensation costs.
 officers directors employees.
 vest equal three-year vesting period employed.
 fair value stock option estimated black- scholes option pricing model.
 weighted average assumptions.
 expected life options.
 average vesting term original contractual term.
 volatility historical volatility five competitors six year period.
 risk-free interest rate.
 treasury yield curve.
 dividend yield five year history dividend payouts.
 risk-free interest rate 2. 5%. 1%
. 7%. 4%. 4
 dividend yield.
 average fair value per share at grant date $ 10. 34 $ 12.


holders grupo gondi manage joint venture provide technical commercial resources.
 presence mexican market.
 included financial results corrugated packaging segment since formation.
 accounting investment equity method.
 january 19 2016 completed packaging acquisition.
 entities folding carton litho-laminated display packaging solutions.
 customers markets facilities.
 included financial results consumer packaging segment.
 october 1 2015 sp fiber acquisition.
 mills dublin newberg lightweight recycled containerboard kraft bag paper.
.
 acquired 48% interest green power solutions.
 steam dublin mill electricity georgia.
 closure newberg mill decline market balance supply demand containerboard.
 included financial results corrugated packaging segment.
.
 mergers acquisitions.
.
.
.
 year ended 2018 2017 2016

 net sales $ 16285. $ 14859. $ 14171.
 income $ 1685. $ 1193. $ 1226.
 differentiated paper packaging solutions.
 cost price environment.
 net sales $ 16285. 1 million increased $ 1425. 4 million. 6%. 2017.
 corrugated packaging sales higher selling price consumer packaging.
 offset sales hh&b lower land development sales lower merchandising sales packaging.
 income increased $ 491. 5 million corrugated packaging.
 higher cost inflation offset recycled fiber deflation.
 freight chemical virgin fiber.
 productivity improvements.
 higher cost inflation 2019.
 corrugated packaging segment increased net sales $ 695. 1 million $ 9103. 4 million $ 8408. 3 million 2017.
net sales higher price volumes offset lower recycling fiber costs deconsolidation currency.
 north american box shipments increased. 1%.
 corrugated packaging increased $. million $ 1207. 9 million 753. million 2017.
 higher selling price lower recycled fiber costs productivity improvements offset cost inflation depreciation amortization.
 consumer packaging segment increased sales $ 838. 9 million $ 7291. 4 million 6452. million 2017.
 acquisitions higher price offset hh&b lower volumes.


return graph compares return standard poor composite 500 index dow jones health care providers index five years 2014.
 assumes investment $ 100 common stock s&p 500 peer group 2009 dividends reinvested.
 $ 100 125 201 160 244
 s&p 500 $ 100 115 117 136 $ 180
 peer group $ 100 112 123 144 198 252
 stock price performance not indicative future performance.


distribution channels presents doors geographic location ralph lauren-branded products sold april 3 2010 doors.
 united states canada 4402
 4421
 japan
 8940
 asia-pacific products distributed concessions sales.
 american living chaps products sold 1700 doors.
 five key department-store customers sales volume.
 45% wholesale revenues macy.
 18%.
 brands sold sales.
 showrooms new york.
 regional showrooms atlanta chicago dallas milan paris london munich madrid stockholm.
 shop-within-shops.
 brand recognition merchandising differentiate presentation.
 customized fixtures wall cases decorative items flooring.
 april 3 2010 14000-shops lauren-branded products worldwide.
larger shop-within-shops size 300 to 6000 square feet.
 share cost wholesale customers.
.
 knit shirts pants.
 ship three-to-five days order receipt.
 2010 179 full-price 171 factory stores 2. 6 million square feet 281 shop-within-shops two e-commerce websites.
 extension direct-to-consumer reach goal.
 reinforce luxury image exclusive lines.
 opened 3 closed 3 2010.
 assumed 16 stores


discount rate assumed discount rate retirement benefit plan expense obligations interest rate future cash flows.
 discount rate determined bonds outflows future benefit payments.
 benefit payments contingent on terms plan participant demographics age mortality.
 bonds denominated.
 dollars rated aa or better by two agencies minimum outstanding issue $ 50 million not callable convertible index linked.
 bond yields beyond 30 years rates constant.
 average discount rate for pensions 5. 23%. 84%.
 other postretirement benefits 4. 94%. 58%.
 expected long-term rate of return net periodic expense based on historical returns asset allocations investment policy duration future performance inflation trends portfolio volatility risk management strategies.
.
 reduced long-term rate assumption from 8. 50%.50 % 2011 expense 8.%. 2012.
 decrease expected return assets related lower bond yields updated return assumptions equities.
 assets obligations return pension assets based fair value assets year.
 increase decrease 25 points discount rate long-term rate return assumptions impacts pensions millions 2012 expense 31 2011 obligations.
 25 point decrease discount rate
 increase
 decrease return assets.
 increase return.
 differences experience assumptions affect retirement benefit plan obligations funded status.
 gains losses deferred accumulated income.
 unrecognized amount amortized 10% plan benefit obligation assets.
 amortization period gains losses estimated average service life 10 years.
 retirement benefit plan costs assigning costs specific periods.
 liability cost recognition different.
drivers cas pension expense include funded status method reimbursement expected long-term return assets.
 unlike fas requires discount rate with return.
 bond interest rates impact cas.
 allocate pension costs until fully funded.
 update estimates costs annually based asset returns census data.
 key driver difference fas cas expense adjustment pattern earnings expense recognition gains losses asset liability experiences assumptions.
 net gains losses exceeding 10% corridor amortized


company presents investment exposure deferred compensation hedged impact deferred compensation offset compensation expense hedged mitigated return swap.
 interest capital allocations excluded no impact stockholders equity.
 investment federal reserve bank stock not market rate risk excluded economic investment exposure.
.
 investments $ 1750 $ 1631
 consolidated investmentfunds -524 -587
 consolidated funds 475
 investments adjusted 1656 1519
 federal reserve bank stock -89 -328
 deferred compensation investments -62
 hedged investments -43
 201ceconomic 201d investment exposure $ 1211 $ 1062
.
.
.
2012 2011 $ 524 million $ 587 million blackrock investments funds controlled consolidated.
 decrease $ 239 million lower federal reserve bank stock blackrock.
.
 investments 2012 increased $ 137 million 2011 $ 765 million purchases contributions $ 185 million valuations equity investments $ 64 million capital allocations offset $ 742 million sales/maturities $ 135 million distributions.


62 financial statements corporation subsidiaries.
 31 2007 subsidiaries loss 2020 2026 $ 64. 6 million tax benefit $ 25. 2 million.
 subsidiaries loss $ 54. 4 million tax benefit $ 14. 6 million.
.
 loss $ 15. million tax benefit $ 5. 4 million.
 uncertainty benefits offset valuation allowances $ 8. 6 5. 4 million.
. million goodwill.
 foreign tax credit $ 5. 8 million uncertainty valuation allowance $ 3. million carrying value $ 2 million.
 january 1 2007.
 uncertainty. tax $ 45. million reserve $ 2. million.
 $ 11. 4 million reduction earnings $ 9. 3 million reduction goodwill.
 reconciliation tax benefits accounting.
january 2007 45.
 additions tax.
 prior.
 reductions settlements.
 foreign currency exchange rates.
 balance december 31 2007 $ 41.
 income taxes.
 deferred taxes liabilities.
 41.
 unrecognized tax benefits tax expense $ 35. million.
 no 12 months.
.
 federal state tax returns 2000- 2006 open audit 2004.
 2002 2006.
 filings germany france netherlands poland united kingdom.
 recognizes penalties unrecognized tax benefits.
 31 2007 $ 2. 7 million expense.
 $ 5. million.
 penalties.
 2007 $ 11. 5 million accrual.
.
 third quarter 2007 interest deductions loans life insurance plan.
 total accrual december 31 2007 2000-2004 2005 2007 $ 18.4 million interest.
 settlement interest deductions no earnings cash flows.


entergy corporation subsidiaries financial statements.
 plant nuclear fuel $ 727
 decommissioning trust funds 252
 assets 41
 assets acquired 1020
 purchased power agreement 420
 decommissioning liability 220
 other liabilities 44
 liabilities assumed 684
 assets acquired $ 336
 received $ 6 million consumers energy post-closing adjustment asset sale agreement.
 $ 6 million reduction plant liabilities.
 nuclear liability revenue.
 difference value.
 $ 53 million 2009 76 million 2008 50 million 2007.
 $ 46 million 2010 43 million 2011 17 million 2012 18 million 2013 16 million 2014.
 nuclear fitzpatrick indian point 3 plants.
 agreements.
 annual payments generation output 3 fitzpatrick plants 2007 2014.
 $.59 mwh power indian point 3 $ 48 million $. 91 mwh fitzpatrick $ 24 million.
 annual payment due january 15 following.
 non-utility nuclear liability payments nypa.
 equal liability recorded plant asset account contingent purchase price.
 2009 2008 2007 recorded $ 72 million generation.
 depreciated life plants.
 august 2008 dispute nypa value sharing agreements fitzpatrick indian point 3 plants spin-off.
 separation obligation payments.
 spin-off enexus payments nypa.