jpmorgan chase.
 2007 annual report 155 risk-adjusted rates.
 considers portfolio servicing fees prepayment assumptions delinquency rates late charges revenue costs economic factors.
 adjusts inputs assumptions market conditions.
 prepayment model refined decrease future mortgage prepay home prices credit standards refinancing.
 compares value estimates assumptions market data activity portfolio experience.
 fair value sensitive interest rates prepayment speeds.
 uses derivatives securities trading instru manage fair value.
 offset risk management instruments.
 msrs interest rates.
 securities certificates deriva increase interest rates.
 2006 fasb issued sfas 156 fair value accounting assets.
 jpmorgan chase january 1 2006 defined msrs.
transition date fair value msrs exceeded carrying amount valuation allowance by $ 150 million taxes.
 recorded cumulative adjustment earnings january 1 2006.
 msrs recognized consolidated balance sheet fair value changes recorded in earnings.
 revenue financial instruments recorded in mortgage fees income.
 year december 31 2005 accounted under sfas 140  lower cost fair value approach.
 amortized servicing income.
 firm stratified portfolio predominant risk characteristics loan type interest rate.
 impairment reduction revenue valuation allowance value fair value.
 carrying value valuation allowance amounts other-than-temporary.
 firm designated deriva tives. sfas 133 fair value hedges rate risk.
 value through earnings.
 hedge period daily.
benchmark interest rate firm considered impact prepayment speed fair value msrs.
 hedge effectiveness assessed regression analysis fair value.
 valua adjustments msrs sfas 133 derivatives recorded mortgage fees income.
 value accounting sfas 156 133 hedge accounting necessary.
 hedging note 30 pages 168 2013169 annual report.
 table summarizes msr activity key assumptions sensitivity fair value changes years december 31 2007 2006.
 balance after valuation allowance $ 7546 $ 6452
 effect accounting principle
 fair value
 originations 2335
 purchase
 additions 3133
 change valuation inputs assumptions -516
 changes fair value
 change value -1275
 value december 31 $ 8632 $ 7546
unrealized gains income msrs december 31 -516
 represents msr asset fair value adjustments market inputs interest rates volatility updates assumptions msr valuation model.
 represents realized unrealized gains losses net income sfas 157.
 changes recorded mortgage fees income.
 changes msr value servicing portfolio runoff decay.
 impact cash settlements.
 recorded mortgage fees income.


realty corporation annual report 200844 estimated.
 completion estimates contract expenditures final costs.
 changes job performance conditions profitability revisions costs income recognized.
 unbilled receivables construction contracts totaled $ 22. 7 million $ 33. 1 million at december 31 2008 2007.
 property sales gains recognized sfas 66.
 timing sale measured criteria assistance.
 judgments terms transaction total profit ownership interest future involvement.
 sales criteria defer gain recognition account operations finance installment cost recovery until full sales criteria met.
 future costs sale included gain sales.
 gains sales depreciated property operations proceeds sale classified investing activities.
 gains losses sale properties developed repositioned not classified gain sale.
 proceeds development sale classified operating activities.
computed income average.
 diluted income minority interest earnings potential dilutive securities.
 table reconciles basic diluted income.
 2008 2007 2006
 basic income $ 56616 $ 217692 $ 145095
 minority interest earnings 2968 14399 14238
 diluted income $ 59584 $ 232091 $ 159333
 146915 139255 134883
 units 7619  9204 13186
 dilutive shares stock-based compensation plans 507 1155 1324
 securities 155041 149614 149393
 excludes 7731 719 anti-dilutive shares december 31 2008 2007 2006.
 excludes. 75%. exchangeable senior notes due november 2011 2006 anti-dilutive effect earnings 31 2008 2007.
joint venture partner convert ownership common shares.
 effect earnings anti-dilutive years 2008 2007 2006.


cross-border outstandings countries 1% assets december 31 2007 2006 2005 millions.
 united kingdom $ 5951 5531 2696
 canada 4565
 australia 3567
 netherlands
 germany 2944 2696
 total cross-border outstandings $ 17027 $ 9746 $ 10809
 outstandings 12% 12 % 9 % 11% 11 % assets december 31 2007 2006 2005.
 no outstandings countries. 75%. 1% 1 % assets.
 cross-border outstandings. 1% 1 2006 $ 1. 05 billion canada 2005 $ 1. 86 billion belgium japan.
 management level capital risk profile regulatory requirements financial flexibility initiatives.
 objective strong capital base financial flexibility growth protection against loss depositors creditors.
strive maintain optimal capital risk profile attractive return short long term protecting obligations depositors creditors regulatory requirements.
 capital management focuses risk exposures capital position regulatory capital requirements evaluations credit rating agencies.
 capital committee asset liability committee oversees regulatory capital capital requirements targets.
 primary regulator state street bank federal reserve board.
 subject minimum capital requirements deposit insurance corporation act 1991.
 meet regulatory capital thresholds financial holding.


average value options 2012 2011 2010 $ 13 $ 19 $ 20 per share.
 total value $ 19. million $ 4. 2 million $ 15. 6 million.
 company granted 931340 shares common stock 4048 restricted stock units.
 vesting period 2 to 4 years.
 fair value $ 54. 5 million compensation expense.
 dividends accrued paid.
 2012 granted 138410 performance shares.
 fair value $ 7. 7 million compensation expense.
 contingent performance market conditions.
 table summarizes restricted stock performance shares activity 2012 grant date value december 31 2011.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
 cancelled.
.
.
.
.
.
.
.
.
.
.
.
.
.
 restricted shares 2010 $ 20. 9 million $ 11. 6 million $ 10. 3 million.
 employees acquire shares-tax payroll deductions.
 purchased closing price nasdaq.
 compensation expense recognized.
 2012 2011 2010 27768 32085 21855 shares issued employees.
 six-month holding.
 expense $. 1. 2. million purchase discount 2012 2010.
 non-executive directors annual award stock $ 75000.
 annual stipend $ 25000 closing price.
 40260 40585 37350 shares common stock issued non-executive directors 2012 2011 2010.
 not vesting restrictions.
 expense $ 2. 2 million. 1 million $. 4 million recognized 2011 2010.
.
company uses quoted prices equity investments.
 level 1 assets include.
 treasury equity securities mutual funds quoted prices.
 inputs.
 level 2 asset- backed securities municipal bonds.
 government agency securities interest rate swap contracts.
.
 measured matrix pricing.
 value interest rate swap contracts standard valuation models inputs exchange rates interest rate curves.


pnc financial services group.
 2013 form 10-k 29 ii item 5 2013 market common equity stockholder matters issuer purchases equity securities common stock listed new york stock exchange traded symbol 201cpnc. close business february 15 2019 53986 shareholders.
 entitled receive dividends declared board directors funds.
 pay dividends until past periods capital paid.
 quarterly cash dividends.
 future dividends economic market conditions financial condition operating results contractual restrictions government regulations policies.
 dividend subject assessment capital adequacy planning federal reserve primary bank regulators.
 federal reserve dividends without approval.
information dividend restrictions loans dividends advances bank subsidiaries parent company see supervision regulation section item 1 risk factors liquidity capital management 7 10 borrowed funds 15 equity 18 regulatory matters consolidated financial statements item 8.
 compensation plans pnc equity securities december 31 2018 12.
 stock transfer agent registrar computershare trust company.
 250 royall street canton 800-982-7652. computershare. shareholders contact dividends shareholder services.
 common stock performance graph item 5.
.
.
 repurchases pnc common stock fourth quarter 2018 table total shares purchased average price paid share maximum number.
 october 1 2013 31 1204 $ 128. 43 1189 25663
 november 1 2013 30 1491 $ 133. 24172
december 2013 3458 $ 119.
 6153 $ 124.
 pnc common stock employee benefit plans forfeitures unvested stock payroll tax withholding.
 11 benefit 12 stock compensation plans pnc.
 march 11 2015 approved stock repurchase 100 million shares pnc stock effective april 1 2015.
 repurchases open market privately transactions market economic conditions regulatory capital considerations alternative credit ratings contractual regulatory limitations assessment capital.
 2018 share repurchase programs $ 2. 0 billion $ 300 million employee benefit plans.
 november 2018 $ 900 million additional share repurchases.
 aggregate repurchase price fourth quarter 2018 $. 8 billion.
 liquidity capital management risk 7 share repurchase programs july 1 2018 june 30 2019.
.


stockholder return graph compares 5-year return common stock nasdaq composite s&p 400 information technology index.
 assumes investment common stock index december 31 2011 $ 100 year 2016.
 5 year return cadence design systems. nasdaq composite index s&p 400 information technology.
$ 100 invested 12/31/11 reinvestment dividends.
 month-end.
 s&p global.
.
 12/31/2011 12/29/2012 12/28/2013 1/3/2015 1/2/2016/31/2016
 cadence design systems. 129. 133.
 nasdaq composite. 165 216
 s&p 400 information technology. 170 178 219.
 stock price performance not indicative future price performance.


marathon oil corporation financial statements discontinued operations.
 pretax income table 2009 2008 2007.
 revenues discontinued operations $ 188 $ $
 pretax income $ 80 $ 221 $ 281
 sell 20 percent outside interest block 32 offshore angola $ 1. 3 billion effective date january 1 2009.
 net proceeds $ 1. 3 billion february 2010.
 pretax gain $ 800 million.
 retained 10 percent outside interest block 32.
 net proceeds $ 269 million.
 $ 232 million pretax gain.
 sale assets new mexico west texas net proceeds $ 293 million.
 $ 196 million pretax gain.
 properties net proceeds $ 84 million.
 $ 158 million pretax gain.
sale terminated pension plan ireland $ 18 million.
 june 2009 sell subsidiary 19 percent interest corrib natural gas development.
 proceeds estimated $ 235 million $ 400 million timing first commercial gas closing adjustments.
 initial $ 100 million payment closing adjustments.
 fair value $ 311 million.
 sale $ 100 million closing $ 135 million first gas 31 2012 to $ 165 million contingent proceeds.
 $ 154 million impairment operations second quarter 2009 less.
 final proceeds $ 135 million to $ 300 million due first december 31 2012.
 closing.
 writeoff contingent proceeds.
 guarantees subsidiaries sales purchasers.
 indemnified purchasers.
 fair value not.
31 sale e&p properties offshore heimdal proceeds $ 301 million pretax gain $ 254 million december 31.
 october 8 sale 50 percent ptc.
 $ 625 million pretax gain $ 126 million.
 received $ 75 million redemption return investment.
 rm&t.


93 indicative future operations acquisitions 2001.
 information.
 sales $ 5370
 loss $ -44
 loss common share.
 diluted loss.
 $ 26. 8 million 2003 $ 7. 4 million severance costs $ 5. million write-off deferred compensation. million impairments $. million lease cancellations.
. spent 2003 $ 400000 severance costs $ 4. 5 million lease costs abandoned facilities.
 third quarter $ 500000 lease cancellations excess sublease $ 500000 shortfall manufacturing.
 operating expense.
 second quarter 2003 actions total charge $ 2. 8 million. 4 million severance costs $ 400000 asset write-offs lease payments abandoned facility.
second quarter supplemental prior headcount reductions sales marketing americas europe powerschool activities asset write-offs lease payments abandoned facility.
 93 employees 92 terminated 2003.
 restructuring actions cost $ 24 million termination manufacturing singapore reductions headcount powerschool strategy sales marketing united states europe.
 260 positions worldwide eliminated end 2003.
 closure singapore manufacturing severance costs $ 1. 8 million $ 6. 7 million manufacturing assets.
 severance $ 550000 $ 5 million deferred stock compensation.
 termination sales marketing states severance costs $ 2. 8 million leases closed facilities $ 6. 7 million.
 total net restructuring charge $ 23 million reversal $ 600000 unused restructuring accrual 2002.
leases closed facilities remaining severance costs $ 400000 spent first quarter 2004.


benchmark index 10-year treasury yield.
 company derivatives cash flow hedges.
 october 13 2015 $ 4. 5 billion senior notes terminated treasury lock contracts cash settlement $ 16 million recorded earnings adjustment interest expense ten years interest payments recognized income.
 business operations.
 translation local currency balances foreign subsidiaries transaction gains losses intercompany loans transactions currencies.
 manage operating activities foreign currency forward contracts.
.
 exchange risks non.
 operations.
 foreign currency exchange rates affect revenues.
.
 december 31 2016 2015 2014 generated $ 1909 million $ 1336 million $ 1229 million revenues.
.
 major currencies brazilian real euro british pound sterling indian rupee.
 10% move exchange rates revenues 2015 2014.

 pound sterling $ 47 $ 34 $ 31
 euro 38 33
 real 32 29
 indian rupee 12 10
 $ 129 $ 106 $ 107
 impacted currency fluctuations revenues expenses local currency foreign exchange risk.
 revenues $ 100 million $ 243 million net earnings $ 10 million $ 31 million unfavorable foreign currency impact 2016 2015 stronger.
 dollar.
 unfavorable currency impact strengthening.
 dollar.
.
 foreign exchange risk management policy permits derivative instruments forward contracts options reduce volatility.
 instruments.
 periodically enter contracts hedge intercompany loans.
 $ 143 million fair value.
 not.
 currency forward contracts manage.
 $ 7 million fair value less than $ 1 million.
 cash flow hedges.
fair value currency forward contracts determined exchange market rates banks.
 subject changes rates.
 ineffectiveness contracts.
 clear2pay initiated foreign currency forward contract purchase euros sell.
 dollars risk exchange rates purchase price euros.
 hedge accounting recorded $ 16 million income third quarter 2014.
 contract settled october 1 2014.


.
 international paper monitors credit quality non performance.
 capital stock december 31 2006 2005 990850000 shares common stock $ 1 par value 400000 $ 4 preferred stock 8750000 serial preferred stock $ 1 par value.
 issuable without shareholder action.
 2006 authorized share repurchase program $ 3. 0 billion stock.
 purchased 38465260 shares common stock $ 36. 00 per share costs total cost $ 1. 4 billion.
 december 2006 purchased 1220558 shares common stock $ 33. 84 per share total cost $ 41 million.
 454 million shares common stock outstanding.
 retirement.
 maintains employees hired prior 1 2004.
 one year service age 21.
 after 2004 receive additional company contribution savings plan.
plans provide benefits service final earnings hourly rates benefit rates.
 interna paper contributions costs equal employee retirement income security act.
 contributions $ 1. 0 billion plan 2006 2007.
 two unfunded nonqualified pension plans pension restoration plan 2004 supplemental retirement plan senior managers vice dents.
 nonqualified plans funded benefits paid expected $ 41 million in 2007.
 net pension expense service cost value benefits.
 increase projected benefit obli.
 expected return on plan assets current earn estimated long-term rate return.
 qualified nonqualified.
 defined benefit plans millions 2006 2005 2004.
 service cost $ 141 $ 129
 interest cost 506 474 467
 expected return on plan assets -540 ( 540 -556 556 -592 592
loss 243 167
 service cost 27
 pension expense 243
 excludes 9. 6. 5 million. 4 million 2006 2005 2004 curtailment losses 8. 7. million termination benefits cost reduction facility rationalizations restructuring.
 excludes 77. 2 million 14. 3 million 2006 2005 curtailment losses 18. 6 7. 6 million termination bene fits net losses impairments.


2022 obligation payments financial guarantee letter credit subsidiary loss lender triggering defaults debt parent company.
 senior secured credit facility debt securities include default bankruptcy subsidiaries.
 revolving credit agreement includes default payment defaults accelerations debt.
 subsidiaries default indebtedness.
 total non-recourse debt $ 2. 2 billion.
 debt defaults $ 1 billion at december 31 2017 non-recourse subsidiaries 2014 alto maipo aes puerto rico aes ilumina.
 note 2014debt. statements.
 subsidiaries default definition materiality corporate debt agreements december 31  2017 defaults trigger acceleration indebtedness.
 dispositions reductions financial "material subsidiary trigger default indebtedness parent company debt securities.
subsidiary defined credit business 20% parent company cash distributions four fiscal quarters.
 defaults cross-default recourse debt.
 summary obligations liabilities december 31 2017 excludes discontinued operations held-for-sale less than 1 year 5 years debt obligations $ 20404 2250 2431 5003 10720 2014 interest payments long-term debt 9103 1172 2166 1719 4046.
 less than 1 year 1-3 3-5 years more 5 years
 debt obligations $ 20404 2250 2431 5003 10720
 interest payments long-term debt 9103 1172 2166 1719 4046
 capital lease obligations
 operating lease obligations 935
 electricity obligations 4501
 fuel obligations 5859 1759
purchase obligations 4984 1488 1401 781 1314 2014
 long-term liabilities aes consolidated balance sheet 701  2014 284 118  277  22
 $ 46505 $ 7310 $ 8990 $ 9639 $ 20544 22
 recourse non-recourse debt.
 exclude capital lease obligations.
 interest payments estimated maturity dates securities december 31 2017 future refinancing early redemptions new debt issuances.
 variable rate interest obligations december 31 2017.
 include current liabilities uncertain tax obligations.
 obligations column timing.
 include regulatory liabilities contingencies pension postretirement employee benefit liabilities derivatives incentive compensation taxes obligations timing payments.
 consolidated financial statements 8 10-k.
 8.2014financial statements.


tower corporation subsidiaries financial statements 2014 2007 2006 increased deferred tax assets $ 1. 5 million $ 7. 2 million reduction goodwill losses spectrasite.
 merger.
 tax assets full valuation allowance spectrasite purchase 2006.
 valuation allowance decreased $ 308. million $ 88. million 2007.
 $ 149. million reclassification fin 48 balance losses.
 merger $ 45. million allowance reductions 2007 capital loss expirations $ 6. million.
 deferred tax assets $ 74. million $ 31. million excess tax benefits employee stock options losses.
.
 stockholders equity $. million excess tax benefits.
 restructuring american radio systems.
 2007 loss carryforwards future taxable income $ 1. 6 billion $ 2. 1 billion.
company 2019s loss carryforwards expire.
 december
 2008 to 2012 $ 294358
 2013 2017
 2018 2022 466747
 2023 2027
 $ 1600807
 adopted provisions fin 48 january 1 2007.
 unrecognized tax benefits $ 183. million $ 34. 3 million effective tax rate.
 benefits $ 59. million 23. tax rate.
 tax benefits change 12 months tax matters settle.
 uncertainty audit settlements


2017 annual report performance graph five-year period june 30 market performance common stock s&p 500 index peer companies return jack henry associates. s&p 500 index peer group line graph values.
. 138. 177. 195. 267. 322.
 peer group. 117. 161. 203. 233. 39 271.
 s&p 500. 120. 150. 161. 167. 197.
 assumes $ 100 invested june 30 2012 reinvestments dividends.
 returns calculated market capitalization peer group.
 peer companies computer software hardware services financial institutions.
 aci. bottomline. broadridge cardtronics. convergys. corelogic. dst. euronet. fidelity. fiserv. moneygram. tyler. verifone. wex..


credit rating $ 200 million loan libor margin 175 points maturity 2017.
 proceeds acquisition temple- inland.
 international paper repaid $ 1. 2 billion loan.
 interest rate swaps debt expense.
 $ 150 million maturities 2013 14 pages 70 74.
.
 swaps amortization deferred gains decreased cost debt 6. 8%. 6. 6%.
 offsetting interest income investments reduced rate 6. 2%.
 financing 1. 9 million shares treasury stock 1. million common stock options generated $ 108 million cash.
 restricted stock withholding taxes $ 35 million.
 off note 12 pages 67 69.
.
 meet capital expenditures debt working capital dividend requirements.
 credit facilities $ 2. 0 billion.
 compliance debt covenants december 31 2014.
2019s financial covenants require minimum net worth $ 9 billion debt-to- capital ratio less than 60%.
 net worth common stock paid-in capital earnings treasury stock goodwill impairment charges.
 excludes income nonrecourse liabilities.
 debt-to-capital ratio debt divided by plus net worth.
 december 31 2014 net worth $ 14. billion total-debt- to-capital ratio 40%.
 debt capital markets long-term funding.
 decisions guided capital structure planning objectives.
 maximize financial flexibility preserve liquidity interest expense.
 debt accessed public capital markets.
 investment grade credit rating.
 credit ratings bbb baa2.
 contractual obligations future payments.
 millions 2016 2017
 long-term debt $ 742
 obligations right offset
lease 142 106 84 63 45 91
 purchase obligations 3266 761 583 463 422 1690
 $ 4150 $ 6612 738 $ 1755 1072 7965
 debt principal payments.
 obligations non interest entities international paper offset obligations investments.
 $ 5. 2 billion interests $ 5. 3 billion debt obligations 12.
.
 $ 2. 3 billion fiber supply agreements 2006 transformation plan forestland sales 2008 acquisition weyerhaeuser.
 unrecognized tax benefits $ 119 million.
.
 2006 international paper installment sale forestlands received $ 4. 8 billion installment notes non- consolidated borrower entities.
 august 2016.


2014 2013 2012 netherland sewell associates.
 prepared prior year reserves alba field.
 reports annual report form 10-k.
 team industry experience oil gas companies.
 senior advisor 35 years petroleum 15 years estimation.
 second team member 10 years 5 years.
 registered engineers texas.
 ryder scott audits reserves 2014 2013 2012.
 report.
 team lead 20 years industry experience international oil gas company.
 member spe oil gas reserves committee registered engineer texas.
 december 31 2014 728 increase 101 2013.
 table changes reserves 2014.
 627
 revisions estimates
 improved recovery
 purchases reserves
 extensions discoveries additions 227
 dispositions
 transfers -103
 end 728
additions undeveloped reserves 2014 included 121 eagle ford 61 bakken drilling.
 transfers included 67 26 bakken 1 oklahoma.
 costs 2014 2013 2012 $ 3149 million $ 2536 million $ 1995 million.
 102 mmboe booked extensions discoveries reliable technology.
 statistical analysis decline curve pressure rate transient analysis reservoir simulation volumetric analysis.
 reservoir continuity certainty criteria booking reserves.
 projects.
 728 mmboe undeveloped reserves 2014 19 percent volume projects five years.
 majority compression project.
 sanctioned 2004.
 timing driven by reservoir performance maximum production levels.
 exceeded expectations.
 estimates dry gas increased 10 percent between 2004 2010.
 compression project approval.
 government completion mid-2016.
alba reserves infill well approved 2013 drilled second quarter 2015.
 reserves north gialo development libyan sahara desert booked 2010.
 five years executed operator multi-year drilling program liquid handling gas recycling facilities.
 five years.
 civil unrest 2011 2013-2014 extended project duration.
 future costs crude oil 2015 2019 $ 2915 million $ 2598 million $ 2493 million 2669 million $ 2745 million.


consolidated financial statements investments in funds net asset value per share.
 firm uses nav fair value when determinable fair value with accounting.
 firm 2019s investments in firm-sponsored funds investors.
 private equity credit real estate funds closed-end not eligible for redemption.
 distributions received underlying assets liquidated estimated assets liquidated next seven years.
 funds transition volcker rule.
 act.
 investments in hedge funds redeemable quarterly 91 days notice maximum redemption level 25% initial investments.
 plans rule redeeming interests in hedge funds.
 redeemed approximately $ 1. 06 billion year december 2012.
 table presents fair value of investments in commitments funds nav.
millions december 2012 unfunded commitments
 private equity $ 7680 $ 2778 8074 3514
 credit 3927 2843 3596
 hedge 2167 3165
 real estatefunds4 870
 $ 15780 $ 6491 16366 8695
.
 industries leveraged buyouts recapitalizations growth investments.
.
 loans income high-yield capital-sized leveraged recapitalizations financings refinancings acquisitions restructurings private equity issuers.
.
 multi-disciplinary hedge investment arbitrage.
.
 real estate loan portfolios debt recapitalizations property.
 sachs 2012 annual report


.
 dividends subsidiaries affiliates millions.
 2003 2002 2001
 subsidiaries $ 807 $ 771 $ 1038
 affiliates 43 44
.
 guarantees letters credit limited obligations commitments terminated future events.
 december 31 2003 $ 515 million 55 agreements less $ 1 million up to $ 100 million.
 $ 147 million credit enhancements non-recourse debt $ 38 million equity projects.
 december 31 2003 $ 89 million 9 agreements less $ 1 million to $ 36 million.
 pays letter of credit fee. 5%. to.%. per annum amounts.
 $ 4 million surety bonds december 31 2003.


financial statements american airlines group.
 secured financings collateralized by aircraft engines simulators parts airport leasehold rights route authorities airport slots.
 december 31 2015 35 aircraft capital leases.
 leases renewed fair market value.
 maturities long-term debt capital lease obligations millions.
 2016 $ 2266
 2017 1598
 2018 2134
 2019 3378
 2020 3587
 2021 7844
 $ 20807
 2013 facilities american aag credit guaranty agreement deutsche bank $ 1. 9 billion term loan june 2019 $ 1. billion.
 maturity extended june 2020 $ 1. 4 billion extended maturity october 10 2020.
 21 2015 american refinanced. maturity june 2020 libor margin 3. to 2. 75%.
american amendments collateral.
 $ 1. 9 billion 2015 loan facility repayable annual installments first installment equal. 25%. principal june 27 2016 installments equal. 0%. unpaid balance due maturity date.
 december 31  2015 $ 1. 9 billion principal outstanding.
 voluntary prepayments american.
 october 2014 aag amended maturity october 10 2019 increased commitments principal $ 1. 4 billion letter credit commitments $ 300 million.
 october 26 2015 american aag maturity october 10  2020.
 american borrow repay loans letters.
 december 31 2015 no borrowings letters credit outstanding.
 facilities interest index rate margin libor. 75%. $. billion 2015 margin 3.%. 2013. 75%.9 billion 2015 loan american 2019s ba3 bb- s&p libor margin 2. 50%. billion


2013 annual report form 10-k repatriation undistributed earnings non.
 subsidiaries 2012.
 tax cost $ 250 million $ 110 million.
 company files federal state local income tax returns jurisdictions.
 examination tax authorities.
 subject examinations before 2006.
 internal revenue service examination.
 federal income tax returns 2010.
 examination.
 tax return 2011 2014.
 reconciliation unrecognized tax benefits excluding interest penalties december 31.
 millions 2013 2012
 balance january 1 $ 82 $ 107 $ 111
 additions tax positions
 prior
 reductions
 pre-acquisition unrecognized tax benefits
 reductions expiration statute limitations
 foreign currency translation
 balance december 31 $ 85 $ 82 $ 107
company expects change unrecognized tax benefits next 12 months significant.
 total effective tax rate $ 81 million december 31 2013.
 recognizes accrued interest penalties tax benefits.
 liabilities interest penalties benefits $ 9 million $ 10 million $ 15 million.
 recognized $ 2 million $ 5 million income 2013 2012.
 no income expense interest penalties 31 2011.
.
.
 principal. canada netherlands.
 91% projected benefit obligation december 31 2013.
 majority.
 sponsors welfare benefit plans postretirement medical life insurance.
 employees dependents.
 require retiree contributions future benefit cost increases.
 modify terminate plans.
 employees.
 hired 1 2004 rehired 2012 not eligible postretirement medical benefits.
.
hired rehired transferred salaried after january 1 2006.
 employees hired 2006 eligible defined contribution retirement plan.
 not eligible defined benefit pension plan benefits.
 2011 approved amendment.
 pension 77%.
 projected benefit obligation december 31  2011.
 employees accruing benefits remaining accrue benefits december 31 2020.
 employees participate defined contribution retirement plan.
 remeasured benefit obligation lowered 2011 pension expense $ 12 million.
 changes.
 pension plans 2011.
 recognized curtailment loss special termination benefits $ 5 million 2011.
 plans benefit plans.
 merger 28 2013. transferred defined benefit pension plan postretirement benefit liabilities employees. net partial settlement loss $ 33 million


emerson annual report september 30 1874750 shares awarded 2016 outstanding contingent performance objectives 2018.
 97 percent 2018 1818508 shares distributed early 2019.
 rights 2261700 2375313 shares awarded 2018 2017 performance shares program contingent performance objectives 2020 2019.
 incentive shares plans restricted stock awards management three ten years.
 fair value high low market prices stock compensation expense.
 2018 310000 shares vested.
 167837 shares issued 142163 shares withheld.
 september 30 1276200 shares unvested stock outstanding.
 total fair value $ 20  $ 245 $ 11  2018 2017 2016 $ 9 $ 101 $ 4 paid cash tax withholding.
 september 30. 3 million shares.
 changes shares outstanding.
4999 $ 50. 33
 granted 2295 $ 63.
 earned/vested -310 $ 51. 27
 canceled -86 $ 56.
 6898 $ 54.
 compensation expense stock options incentive shares $ 216 $ 115 $ 159 2018 2016 $ 5 $ 14 discontinued operations.
 increase 2018 stock price performance objectives.
 decrease 2017 stock price.
 income tax benefits $ 42 $ 33 $ 45.
 unrecognized compensation expense unvested shares $ 182  1. years.
 awarded 12228 shares 2038 units non-management directors.
 159965 shares.
. shares compensation plans.
. million purchased. 6 million treasury reissued.
 2017. purchased. reissued.
. million shares. preferred stock none issued.


simulations assume assets liabilities mature current market rates.
 consider projections forecasting net interest income.
 graph presents libor/swap yield curves base rate alternate scenarios.
 interest rate scenarios market slope flattening quarter 2014 analyses consolidated balance sheet increase interest rates sloping yield curve.
 deposit funding balance sheet flexibility adjust interest rates market conditions.
 fixed income securities derivatives foreign exchange transactions investing hedging.
 marked-to-market daily.
 proprietary.
 value-at-risk risk.
 calculate diversified var 95% 95 % ) confidence interval.
 portfolio losses.
 correlations asset classes.
 ranged $. 8 million $ 3. 9 million 2.
 2013 ranged $ 1. 7 million $ 5. 5 million.
 backtesting.
backtesting gains losses against levels calculated prior.
 assumes market exposures variability future variability.
 customer-related trading includes revenue intraday hedging losses.
 two instances 2014 losses.
 one 2013.
 500 day period.
 graph comparison enterprise-wide gains losses against prior day.
 52 2013 gains/losses versus customer-related trading revenue-related trading revenue year december 31.
 interest income $ 31
 noninterest income
 revenue $ 178 $ 264
 securities trading
 foreign exchange
 financial derivatives
 revenue $ 178 264
 underwriting fees.
.
 revenues 2014 decreased $ 86 million compared 2013.
 due to market interest rate changes reduced sales revenues offset by improved securities foreign exchange sales results.
.


five-year performance comparison 2013 graph cumulative shareholder returns corporation peer group index dow jones s&p 500.
 investment common stock union pacific corporation index $ 100 december 31 2002 dividends reinvested.
 five-year cumulative return 2002 2003 2004 2005 2007 s&p 500 purchases equity securities repurchased 13266070 shares common stock average price $ 115. 66.
 first nine months 2007 repurchased 10639916 shares average price per share $ 112. 68.
 table common stock repurchases fourth quarter 2007 average.
 pershare
 oct. 1. 31 $ 128.
.
. 1986078.
.
shares purchased quarter 228354 shares delivered employees option prices tax obligations.
 january 30  2007 board authorized repurchase 20 million shares common stock december 31 2009.
 open market transactions.
 management discretion timing amount.


management financial condition results operations 2013 amounts millions liquidity capital resources cash flow tables financial data liquidity capital resources.
 2018 2017 2016
 net income operating $ 1013. $ 852. $ 1018.
 working -431. 431. -410.
 non-current assets liabilities -16. 8 24. -95.
 operating activities $ 565. $ 881. $ 512.
 investing -2491. 2491. -196. -263. 263.
 financing 1853. -1004. -666.
 net income depreciation amortization intangible restricted stock non compensation losses sales deferred income taxes.
 accounts receivable assets accrued liabilities.
use cash first nine months largest impact first quarter generate cash fourth quarter driven strong media spending.
 annual capital results impacted fluctuating media spending budgets changing spending patterns.
 timing media buying affects working capital cash flow volatile.
 agencies pay production media costs.
 pay after funds.
 affect accounts receivable payable accrued liabilities contract liabilities.
 assets include cash received accounts receivable liabilities owed suppliers.
 affected timing payments.
 annual cash incentive awards paid first quarter year.
 net cash 2018 $ 565. decrease $ 316. 2017 increase working capital usage $ 436.
 impacted spending levels.
 attributable media businesses.
 $ 881. increase $ 369. 2016 improvement working capital usage $ 415.
 benefited spending patterns.
2018 $ 2309. 8 acxiom capital expenditures $ 177. 1 leasehold improvements.


31 2015 carrying amount amortization.
 carrying amount
 computer software $ 793 $ -643
 patents licenses -98
 intangibles -64
 amortizable assets 1864 -805
 indefinite-lived trade names trademarks 45
 intangible assets $ 1909 $ -805
 computer software enterprise business solution.
 amortization expense intangible assets 2016 2015 2014 $ 65  $ 67  $ 55  $ 56 to $ 64 annually 2017 to 2021.
.
 acquisitions divestitures.
.
 medical business lisi medical $ 102 cash $ 99 transaction costs proceeds.
 international metals.
 manufactures precision-machined metal products invasive surgical.
transaction occurred rti acquisition no gain recorded excess proceeds purchase price adjustment $ 44 arconic acquisition.
 operating results assets liabilities engineered products solutions segment.
 generated sales $ 20 january 2016 330 employees.
 no subject post-closing adjustments.
.
 arconic aerospace company tital for $ 204 ) cash additional $ 1 paid.
 tital 650 employees produces aluminum titanium products aerospace defense.
 acquisition capture demand jet engine components-casting capabilities expand aluminum casting capacity.
 assets goodwill liabilities included engineered products solutions segment.
 preliminary goodwill $ 118 recorded.
 quarter 2016 allocation finalized third-party valuation $ 1 reduction goodwill.
 $ 117 goodwill deductible no other intangible assets.
 no subject post-closing adjustments.
july 2015 arconic rti.
 traded new york stock exchange. purchased shares $ 870 $. 96 share july 23 closing price


consolidated financial statements 101% principal amount plus accrued unpaid interest.
 cash proceeds sale $ 983 million net discount issuance costs.
 $ 17 million amortized interest expense.
 august 2010 ppg three-year credit agreement.
 $ 1. 2 billion unsecured revolving credit facility.
 terminated 20ac650 million $ 1 billion revolving credit facilities 2011.
 no outstanding amounts.
 increase credit agreement $ 300 million subject commitments.
 amounts due payable august 5 2013.
 loans bear interest rates margin formulas.
 commitment fee unused. 125%. to. 625%. per annum.
 interest rate fee ratings financial services.
.
 no amounts outstanding december 31 2011 available borrowing rate one month.
 dollar borrowing 1. 05 percent.
credit agreement contains restrictive covenants limitations create liens sale leaseback transactions consolidations mergers transfers of assets.
 requires ratio indebtedness to capitalization 60 percent or less.
 contains events default repayment failure payments covenants change control bankruptcy insolvency.
.
 operations have uncommitted lines of credit $ 679 million $ 36 million used 31  2011.
 subject to cancellation not subject commitment fees.
 short-term debt outstanding as of 2011 2010 3. 72%.
. 39%. with restrictive covenants credit agreements loan agreements indentures.
 credit agreements include financial ratio covenant.
 total indebtedness not exceed 60% of capitalization excluding pensions postretirement benefit adjustments.
december 31 2011 indebtedness 43 percent capitalization excluding pensions postretirement benefit adjustments.
 debt agreements contain cross-default provisions.
 default payment $ 10 million.
 debt obligations secured guaranteed affiliates.
 interest payments 2011 2010 2009 totaled $ 212 million $ 189 million $ 201 million.
 october 2009 agreement counterparty repurchase. 2 million shares stock. purchased open market $ 56. 66 per share.
 counterparty held shares until 2010 paid $ 65 million.
 december 2008 repurchase. 5 million.
 3. 72%. 72 % ). 2011. 39%. 39 % 31 2010
 101% principal amount plus accrued unpaid interest.
 proceeds sale $ 983 million discount costs.
 $ 17 million amortized to interest expense.
august 2010 ppg three-year credit agreement banks agreement.
 $ 1. 2 billion unsecured revolving credit facility.
 terminated 20ac650 million $ 1 billion credit facilities 2011.
 no outstanding amounts due termination.
 increase credit agreement $ 300 million subject commitments.
 amounts due payable august 5 2013.
 loans bear interest rates base rates margin.
 commitment fee unused commitment. 125%. to. 625%. per annum.
 interest rate fee ratings standard poor financial services investor service.
.
 no amounts outstanding december 31 2011 available borrowing rate one month.
 borrowing 1. 05 percent.
 credit agreement contains restrictive covenants limitations create liens sale leaseback transactions consolidations mergers transfers.
credit agreement requires company maintain ratio indebtedness to capitalization 60 percent or less.
 contains events default repayment failure timely payments covenants change control bankruptcy insolvency.
.
 operations uncommitted lines credit $ 679 million $ 36 million used december 31  2011.
 subject to cancellation not subject commitment fees.
 short-term debt outstanding as december 31 2011 2010 millions 2011 2010 average 3. 72%.
. 39%. 2010 restrictive covenants credit agreements loan agreements indentures.
 credit agreements include financial ratio covenant.
 total indebtedness not exceed 60% capitalization excluding.
 december 31 2011 indebtedness 43 percent capitalization.
 debt agreements contain cross-default provisions.
 default debt service payment $ 10 million or more default.
debt obligations affiliates.
 interest payments 2011 2010 2009 $ 212 million 189 million 201 million.
 october 2009 counterparty repurchase 1. 2 million shares. $ 56. 66 per share.
 counterparty held shares until 2010 paid $ 65 million.
 december 2008 repurchase 1. 5 million


target awards executive officers joseph.
 domino ceo texas 50% 50 % ) hugh.
 mcdonald arkansas 50% 50 % ) haley fisackerly mississippi 40% 40 % ) william.
 60% 60 % ) gulf states louisiana charles.
 rice.
 40% ( 40 % ) new orleans theodore.
.
 principal accounting officer subsidiaries 60% ( 60 % ).
 awards officers set supervisors allocated incentive pool.
 considerations.
 current position management level.
 levels 1 4.
.
 denault.
 taylor 2.
.
 3.
.
.
.
 4.
 incentive targets differ market data factors.
 2010 committee determined executive incentive plan targets annual bonuses 2011.
committee 2019s target levels after review 2011 financial plan entergy corporation recommendation finance committee targets with 2011 financial performance.
 targets performance.
 minimum
 earnings per share $ $ 6.
 operating cash flow $ 2. 97 $.
 2012 earnings determined entergy corporation exceeded earnings per share target $ 6. 60 by $ 0. 95 in 2011 short of operating cash flow goal $ 3. 35 billion by $ 221 million 2011.
 2012 personnel committee certified 2012 entergy achievement multiplier at 128% target.
 increased by 25 percent if performance goals satisfied multiplier or.
 section 162 internal revenue code management effectiveness factor mechanism achievement factors performance.
2012 committee eliminated management effectiveness factor 2011 incentive awards entergy achievement multiplier consistent performance management.
 annual incentive awards executive officers.
.
.
 incentive pool approved committee.
 supervisor determines annual incentive payment entergy achievement multiplier.
 decrease.
 approval entergy chief executive officer.


december 2017 system energy grand gulf sale leaseback transactions future minimum lease payments rate 5. 13%. long-term debt amount thousands.
 2018 17188
 2019
 2020
 2021
 2022
 years 240625
 total 326565
 less interest 292209
 net minimum lease payments $ 34356
 entergy corporation subsidiaries financial statements. retirement benefits defined contribution plans arkansas louisiana mississippi new orleans texas pension plans eight pension plans all employees.
 corporation retirement plan-bargaining retirement non-contributory pay plans pension benefits credited service compensation.
 december 31 2016 corporation retirement plan iv merged non-bargaining plan ii.
close business december 31 2016 liabilities benefits assets non-bargaining plan iv assumed transferred ii.
 no loss vesting benefit options reduction benefits merger.
 non-bargaining employees hire after june 30 2014 participate entergy corporation cash balance plan.
 hired rehired after june 30 2014 participate.
 registrant subsidiaries participate plans.
 assets six final average pay pension plans master trust entergy two cash balance pension plans second master trust. pension plan undivided beneficial interest investment accounts master trust. commingling assets investment administrative purposes. trustee maintains records allocating trust equity net earnings administrative expenses participating pension plans. fair value assets determined trustee investment managers. calculates daily earnings factor


consolidated financial statements fair values firm financial assets liabilities based prices inputs classified levels 1 2 fair value hierarchy.
 2 3 assets liabilities require valuation adjustments credit quality funding risk transfer restrictions liquidity bid/offer spreads.
 adjustments based market evidence.
 notes 6 7 fair value cash instruments derivatives instruments owned sold 8 assets liabilities.
.
 summarized.
 millions december 2012 2011
 1 assets $ 190737 $ 136780
 2 502293 587416
 3 47095
 cash collateral counterparty
 assets fair value $ 638513 $ 651312
 $ 938555 $ 923225
 3 assets 5. 0%. 2%.
 3 7. 4%. 4 %.
 1 financial liabilities $ 65994 $ 75557
2 318764 319160
 3 25679 25498
 cash collateral counterparty -32760 -31546
 fair value $ 377677 $ 388669
. 8%. 6%.
.
 impact cash collateral counterparty netting fair value hierarchy.
.
 3 assets 2012 decreased derivative assets private equity investments.
 settlements unrealized losses sales offset transfers.
 3 assets declined unrealized losses net transfers.
 increase private equity investments offset settlements transfers.
 notes 6 7 8 level 3 cash instruments derivatives assets liabilities fair value unrealized gains losses transfers.
 sachs 2012 annual report


table presents trading activities measured methodology value-at-risk.
 years ended december 31 inmillions 2008 annual average maximum minimum
 foreign exchange products $ 1. 8 $ 4. 7.
 interest-rate products 1. 2
 back-test estimated one-day var daily.
 trading positions modeled.
 years ended december 31 2008 2007 trading losses end-of-day estimate.
 asset liability management activities objective sustainable net interest revenue protecting from interest rates.
 earned from deposits investment servicing businesses.
 balance sheet assets manage interest-rate risk market conditions internally-approved guidelines.
 maintained policies approved board guidelines.
 global treasury group day-to-day interest-rate risk.
consolidated balance sheet global treasury limited interest-rate risk market conditions views long-term.
 manages exposure interest rates three regional treasury units north america asia/pacific impact risk.
 investment activities derivative financial instruments primary tools interest-rate risk.
 financial instruments currency repricing maturity characteristics risk.
 use derivatives interest-rate swaps alter interest-rate characteristics assets liabilities.
 subject alco-approved guidelines.
 information note 17.
 growth non.
 operations.
 dollar denominated customer liabilities significant balance sheet.
 results changes.
 yield curves interest-rate risk management.
 quantitative measures future exposures impact net interest revenue balance sheet values.
 net interest revenue simulation primary tool results.
 market valuation duration analysis assess changes economic value balance sheet assets liabilities changes interest rates.
gap analysis difference sheet assets liabilities re-pricing interest-rate risk.


marathon oil corporation financial statements long-term return plan assets.
 plan determined asset rate-of-return modeling tool third-party investment group assumptions returns asset category inflation.
 pension plan asset allocation.
 current returns risk-free investments government bonds historical risk premiums future returns.
 return weighted asset allocation.
 health care cost trend rates.
 initial health care trend rate 8.
 ultimate trend rate. 70%.
 retiree medical subsidies frozen january 1  2019.
 subsidies post-65 retiree health care coverage frozen january 1 2017.
 company contributions funded health reimbursement account retiree health care benefits.
 1% change health care cost trend rates service interest cost postretirement benefit obligations.
2018 terminated post-65 retiree health benefits december 31 2020.
.
 pre-65 retiree medical coverage subsidy frozen january 1 2019 retirees opt dental vision eliminated.
 retirees enroll lose eligibility.
 changes reduced retiree medical benefit obligation $ 99 million.
 investment policies strategies.
 funded status expectations future.
 goals manage assets legal requirements produce returns risk parameters erosion purchasing power position portfolios long-term risk return orientation.
 performance monitored quarterly meetings liability studies.
.
 asset allocation 55% 55 % equity securities 45% 45 % fixed income securities.
 allocation equity securities fixed income.
 assets managed third-party investment manager.
 allocation 55% 55 % equity securities 45% 45 % fixed income securities.
plan assets invested ten portfolios pooled fund vehicles managed investment managers measured third-party assets measured fair value.
 valuation techniques asset class december 31 2018 2017.
 cash equivalents valued level 1.
 common stock valued closing price active level 1.
 limited partnerships valued estimated values liabilities currency translation performance incentives.
 level 3.
 pooled funds valued market approach equity investments.
 non.
 securities.
 benchmarked public index level 2.


years ended 2018 2017 2016 amounts transactions derivatives non-derivative instruments note a06 financial statements.
 citigroup derivative gains losses trading non instruments.
 amounts revenue derivatives.
 offsetting gains losses economically hedged items.
 gains losses revenue 31.
 millions 2018 2017 2016
 interest rate contracts $ -25 ( $ -73 ( ) $ 51
 foreign exchange -197 ( ) -847 (
 credit derivatives -155 ( ) -538 ( -1174 ( 1174 )
 total $ -377 ( ) $ 1451 $ -1970 ( )
 hedging citigroup accounts hedging activities asc 815.
hedge accounting permitted company exposed to risk interest rate foreign exchange changes fair value future cash flows earnings.
 derivative contracts hedging risks fair value value hedges hedging cash flows cash flow hedges.
 hedges derivatives debt instruments manage foreign exchange risk equity investments non. -dollar currency foreign subsidiaries hedges.
 hedge hedging relationship effective risk.
 documented at inception risk management objective strategy.
 item risk hedging instrument effectiveness.
 effectiveness evaluated inception quantitative measures correlation ineffectiveness recorded in earnings.
 assessment methodologies hedges.
 exclude changes value hedged item unrelated to changes value value.
 items recognized in current earnings changes value hedged item not related to risk not recorded.
adoption asc 2017-12 citi excludes cross currency hedge effectiveness records income.
 hedge instrument offsetting changes fair value cash flows hedged item.
 management de-designate hedge if not effective qualifies hedge accounting.
 changes fair value derivative recognized in revenue transactions no offset hedged item.
 fair value hedges changes fair value remain basis asset liability realized yield.
 cash flow hedges changes fair value remain in income included earnings future periods.
 if transactions occur amounts aoci reflected in revenue.
 criteria applied decentralized basis market risk subject to limits controls.
 underlying asset.


51vornado realty industrial properties seven buildings new jersey 1. 5 million square feet.
 two cross-collateralized mortgage loans $ 47179000 december 31 2006.
 lease terms three to five years.
 occupancy rate average annual rent per square foot past five years.
.
 96. 9%. 9 %
.
.
.
.
 new 90% ( 90 % interest.
 122 rental apartments 133000 square feet 5700 feet commercial space.
 2006 $ 130000000 refinancing.
 loan two tranches first $ 95000000 libor. 50%. 2. 35%. 35 %. 70% second tranche $ 35000000 libor. 50%. 2 45%. 45 %. 80% % 2006
 $ 27990000 drawn second tranche.
east 66th street new york madison 66th 37 apartments 85000 square feet 10000 square feet retail space.
.


ordinary business geologic trends economics allowed lease acreage expire may allow additional acreage.
 production not established leases licenses concessions undeveloped acreage expire next three years.
 plan continue terms licenses concession areas retain leases.
 undeveloped acres expiring year december 31.
 2015 2016 2017
.
.
 hold 20 percent interest aosp oil sands mining upgrading joint venture alberta.
 produces bitumen oil sands deposits athabasca upgrades synthetic crude oils vacuum gas oil.
 mining extraction assets near fort mcmurray alberta muskeg river jackpine mines.
 capacity combined 255000 barrels bitumen per day.
aosp operations oil open-pit mine extract bitumen upgrade crude oils.
 ore mined shovel mining.
 crushers sent rotary breakers.
 combined water slurry.
 separates into sand clay bitumen froth.
 solvent added.
 washes produces clean bitumen.
 yields solvent bitumen transported scotford upgrader 300-mile.
 upgrader fort saskatchewan northeast edmonton.
 bitumen upgraded hydrotreating hydroconversion.
 blendstocks products.
 produces synthetic crude oils vacuum gas oil.
 sold affiliate market prices products sold marketplace.
 leases 163000 33000 acres.
 leases royalties payable province alberta.
 crude oil sales 2014 50 mbbld net-of-royalty production 41 mbbld.
december 2013 jackpine mine expansion project approval canadian government.
 includes mining areas processing facilities infrastructure.
 conditions wildlife environment aboriginal health.
 conditions infrastructure initiatives.
 alberta canada fund quest ccs $ 865 million.
 2012 board approved aosp partners quest ccs.
 funding commenced 2012.
 failure repaying funding.
 construction late 2015.


710 asphalt-paving contractors government entities roofing shingle manufacturers.
 cements polymerized asphalt emulsions industrial asphalts.
 subsidiary sells gasoline merchandise outlets speedway superamerica brands.
 diesel fuel sold.
 merchandise prepared foods beverages non-food items proprietary items.
 1617 retail outlets nine states.
 refined products 15 percent sales volumes.
 non-petroleum merchandise $ 2838 million 2008 $ 2796 million 2007 $ 2706 million 2006.
 demand gasoline seasonal summer.
 profit merchandise services less volatile.
 sold interest pilot travel centers.
.
 crude oil refined products midwest gulf coast refineries terminals.
mpl orpl systems 1815 miles crude oil 1826 miles refined product lines 34 11 states.
 largest petroleum.
 subject to state federal regulations tariffs.
 third parties generated 11 percent oil shipments 2008.
 transported volumes last three years.
 barrels 2007.
 crude oil 1405
 refined products lines 960
 own 176 miles crude oil 850 miles refined products lease 217 miles.
 partial ownership pipeline companies 780 miles crude oil 3000 miles refined products 800 miles mpl.
 mpl operates private pipelines 985 miles crude oil 160 miles natural gas pipelines.
 refined product lines cardinal wabash pipeline.
 kenova columbus.
 wabash robinson chicago.
 refined product pipelines mpl extend robinson louisville garyville zachary texas pasadena.


cash flow conversion rate cash returned information converting earnings returning cash.
 calculation cash flow conversion rate net cash operating activities rate.
 2018
 net earnings redeemable noncontrolling interests $ 2163.
 provisional net tax benefit $ -523.
 mark-to-marketeffects.
 acquisition integration costs.
 restructuring costs.
 project-related costs.
 intangible asset impairments 64.
 tax adjustment 40.
 restructuring costs.
 adjusted net earnings redeemable noncontrollinginterests 1852.
 net cash operating activities 2841.
 purchases land buildings equipment -622.
 free cash flow $ 2218.
 cash operating activities conversion rate 131% ( %
 free cash flow conversion rate 120% ( 120 %
 14.
.
.
.
.
reconciliation effective income tax rate excluding items comparability impact.


capital resources liquidity generated by earnings citi 2019s businesses.
 capital through common stock convertible preferred stock equity employee benefit plans subordinated debt trust securities.
 impact future events on business results changes accounting affect capital levels.
 capital assets absorb market operational losses.
 dividends stock restricted due to agreements with.
 government.
 common stock trust securities.
.
 citigroup capital management framework sufficient capital with risk profile regulatory standards guidelines external rating agency considerations.
 overseen by senior management reviewed at consolidated entity country level.
 through finance asset liability committee oversight from risk management finance committee board of.
 in decision-making on capital liquidity.
finalco responsibilities financial structure citigroup ensuring asset levels return hurdles funding capital markets plan monitoring interest rate risk corporate bank liquidity impact currency translation.
 earnings.
 ratios subject risk-based capital guidelines federal reserve board.
 capital adequacy measured 1 total capital.
 tier 1 capital equity noncontrolling interests mandatorily redeemable securities goodwill intangible assets deferred tax assets.
 total capital includes tier 2 capital subordinated debt allowance credit losses.
 percentage risk-weighted assets.
 2009 supervisory capital program.
 regulators measure capital less elements preferred stock noncontrolling interests redeemable securities.
 risk-weighted assets from risk-based capital guidelines credit risk.
guidelines on-balance-sheet assets off-balance-sheet exposures financial guarantees unfunded lending commitments letters credit derivatives assigned risk-weight categories perceived credit risk obligor guarantor collateral credit ratings.
 risk-weighted assets market risk trading foreign exchange commodity positions.
 excluded goodwill deferred tax assets regulatory capital.
.
 citigroup subject leverage ratio requirement non capital adequacy 1 capital quarterly total assets.
 1 capital ratio 6% total capital ratio 10% leverage ratio 3% not federal reserve board directive.
 citigroup regulatory capital ratios december 2009 2008.
.
 9. 60%. 60 % 2. 30%. 30 %
 11. 67.
 15. 25. 70
 6. 89.
citigroup capitalized federal bank end 2009 2008.


management discussion analysis jpmorgan chase. annual report december 31.
 millions 2009 2008
 hedges lending-related commitments $ -279 $ -3258
 -403 -2359
 net gains losses $ -682 $ -1338 $ -143
 hedges qualify hedge accounting.
.
 jpmorgan chase uses instruments financing needs.
 maximum credit risk.
 lending commitments $ 346. 1 billion december 31 2010 $ 347. 2 billion 2009.
 decrease january 1 2010 accounting guidance.
 commitments increased $ 16. 6 billion.
 amount not representative credit risk exposure funding requirements.
determining credit risk exposure commitments allocating capital established-equivalent amount each commitment represents unused commitment exposure expected default.
 loan-equivalent commitments were $ 189. 9 billion $ 179. 8 billion as of december 31 2010 2009.
 portfolio includes exposures developed emerging markets.
 exposures lending trading investment activities cross-border.
 country exposure based country assets obligor counterparty guarantor.
 amounts adjusted for collateral credit enhancements. outstandings supported by guarantor backed collateral assigned to country enhancement provider.
 effect credit derivative hedges short credit equity trading positions.
 activity government private-sector entities.
 reports country exposure for regulatory ffiec guidelines.
 page 314.
 european countries subject credit deterioration economic fiscal situations.
firm monitoring exposures five countries.
 exposures less than $ 15. 0 billion at december 31 2010 no country majority.
 less than half exposure.
 believes exposure modest risk manageable diversification.
 business exposures may vary.
 impacted by market conditions interest rates credit spreads valuations.
 monitors exposure emerging market countries utilizes country stress tests risk extreme loss crisis.
 no common definition emerging markets includes countries sovereign debt ratings 201ca+ 201d or lower.
 table exposure top 10 emerging markets countries.
 largest exposures credit conditions.


november 2002 fasb interpretation.
 45 accounting disclosure requirements guarantees indirect guarantees indebtedness statements.
 5 57 107 rescission interpretation.
.
.
 contingencies 201d guarantor guarantees.
 disclosures guarantees table.
 december 31 2004
 obligations equity affiliates $ 131
 residual value guarantees
 $ 221
 leases terminated guarantees residual value loss lessors.
 residual value guarantees december 31 2004 $ 90 million leases aircraft equipment.
 material payment guarantees.
 guarantees claims suppliers customers affiliates performance.
 non-performance obligation.
 claims exposures intellectual property environmental matters indemnifications.
 effect future financial results uncertainty final outcome.
ultimate liabilities from claims management adverse effect on company 2019s financial position or liquidity.
 company warrants or replace products manufacturing defect.
 2019s historical claims experience not material.
 estimated product warranty liability as december 31 2004 approximately $ 1 million.
 accrues warranties probable claims.
 evaluated relationships guarantees third-party borrowings joint ventures concluded entities not variable interest primester joint venture cellulose not primary beneficiary.
 not required to consolidate entities.
 evaluated long-term purchase obligations with two entities vies at december 31  2004.
 raw materials utilities approximately $ 40 million.
 no equity interest in entities one party.
 financial information to determine entities.
 financial statements eastman chemical company subsidiaries 2013


amend final rule 2013.
 anticipate epa issues responses amendments policy guidance reduce capital operations maintenance costs.
 nsps final rule expenditures emissions controls monitoring record-keeping facilities crude-oil natural gas industry.
 expect expenditures impact results operations financial position cash flows.
 federal environmental response compensation liability act imposes liability release hazardous substance.
 include owner operator facility companies hazardous substances.
 liable for costs cleaning substances damages natural resources health studies.
 responsibilities impact results operations financial position cash flows.
 chemical site security united states department homeland security released interim rule 2007 companies reports sites chemicals.
 completed assessments facilities assigned four risk-based tiers to.
 four facilities tier 4 rating.
4 rating complete site security plans enhancements.
 impact results operations financial position cash flows.
 united states department homeland security transportation security administration facilities no security issues.
 released new pipeline security guidelines broader definitions facilities. reviewed no material changes required.
 environmental strategy impact operations environment.
 greenhouse gas emissions inventory improving efficiency pipelines processing technologies emission control capture carbon dioxide reduce loss methane.
 natural gas star program methane emissions.
 low rates lost-unaccounted-for natural gas practices limit release maintenance.
 employed 4859 people at january 31  2013 705 kansas gas service subject collective bargaining agreements.
 contracts bargaining units.
 contract
 united steelworkers 406 28
 international electrical workers 299 june 30


derivative instruments company exposed market risks interest rates foreign currency commodity prices business.
 management uses derivative commodity instruments futures options swaps manage risks.
 hedges risk designated.
 designates derivatives cash flow fair value net investment reduce volatility interest rates foreign currency commodities.
 speculative hedging transactions.
 derivative instruments december 29 2012 31 2011.
 millions
 foreign currency contracts $ 570 1265
 interest rate contracts 2150
 commodity contracts 136
 2856 2040
 description each category fair value hierarchy financial assets liabilities december 29 2011 recurring.
 level 1 unadjusted quoted prices active market.
 commodity derivative contracts.
 level 2 quoted prices markets.
 interest rate swaps over-the-counter commodity currency contracts.
company 2019s calculation value interest rate swaps discounted cash flow analysis contract interest rate curve.
-counter commodity derivatives valued commodity index prices contract rate.
 foreign currency contracts rates contract rate.
 calculation value level 2 assets liabilities risk nonperformance counterparty credit risk.
 level 3.
 assumptions.
 level 3 assets liabilities december 29 2012 31 2011.
table presents assets liabilities measured fair value consolidated balance sheet december 29 2012 31 2011 derivatives hedging instruments 2012 2011 millions level 1 2 foreign currency exchange contracts current assets 2014 $ interest rate contracts other assets commodity contracts current assets total assets 68 34 liabilities foreign currency exchange contracts current liabilities 2014 commodity contracts current liabilities total liabilities 41 fair value hedged portion company 2019s long-term debt level 2 liability $ 2. 3 billion december 29 2012 $ 626 million december 31 derivatives not 2012 2011 millions level 1 2 commodity contracts other current assets total assets liabilities commodity contracts other current liabilities total liabilities


market conditions trust asset performance future discount rates bonds decisions provisions.
 benefit plan contributions 2014 $ 57 million.
 2014 contributions different influenced discretionary funding government requirements asset performance renewals union contracts health care claims cost.
 cash flow operating activities reduced expenditures property additions.
 debt repayment dividend distributions acquisition opportunities share repurchases.
 flow metric gaap measure.
 2012
 net cash operating activities $ 1807 $ 1758 $ 1595
 additions properties
 $ 1170 $ 1225 $ 1001
 year-over-year change.
. decrease cash flow 2013 due higher capital expenditures.
 increase 2012 improved performance working capital pringles acquisition changes capital expenditures.
net cash 2013 $ 641 million decrease $ 2604 million attributable $ 2668 million acquisition pringles.
 supply chain infrastructure capacity markets.
 investment information technology infrastructure.
 cash $ 3245 million increased $ 2658 million due pringles.
 additions increased 4. 3%. 2013 8% cash $ 1141 million 2013 compared $ 1317 million 2012 $ 957 million 2011.
 increase due debt pringles.
 total debt $ 7. 4 billion 2013 $ 7. 9 billion 2012.
 issued $ 250 million two-year floating-rate.
 notes $ 400 million ten-year.
 notes net proceeds debt discount $ 645 million.
 corporate purposes repayment $ 750 million. 25%
 notes.
 issued $ 350 million three-year. 125%
 notes $ 400 million five-year. 75%.
 700 million ten-year. 125% 125 %
 proceeds discount $ 1. 442 billion.
 purposes acquisition pringles.
 issued.
 $ 300 million two-year. 10% dollar notes repayment intercompany debt.
 pringles.
 repaid $ 750 million five-year. 125%. 125 %.
.
 repaid $ 945 million ten-year. 60%
.
 issued $ 400 million seven-year. 25%. % fixed rate.
 proceeds 397 million purposes repayment.
 issued $ 500 million five-year. 875% % fixed rate.
.
 proceeds $ 498 million repayment.


republic services.
 financial statements 2014 table summarizes outstanding costless collar hedges december 31  2016 floor strike price.
 2017 120000 $ 81. 120.
 2018 120000. 120.
 costless collar hedges recorded consolidated balance sheets fair value.
 determined standard option valuation models assumptions commodity prices 2.
 no outstanding recycling commodity hedges december 31 2015.
 aggregated fair values liabilities $ 0. 8 million  recorded liabilities balance sheets.
 no amounts recognized income ineffective changes fair values 2016 2015 2014.
 total loss $. 5 million 2016.
 income 2015.
 gain $ 0. 1 million 2014.
 techniques observable inputs minimize unobservable inputs.
use market data assumptions pricing asset risk.
 carrying value financial instruments cash accrued liabilities fair value short-term.


12.
 security ownership owners management stockholder matters.
 information 201csecurity ownership 2017 proxy statement incorporated form 10-k.
 equity compensation plan information table equity compensation plans issuance shares lockheed martin common stock employees directors.
 december 31 2016.
 category securities issued options warrants rights price future issuance approved 5802673 $ 85. 82 6216471 plans not approved 1082347 2014 2481032.
 securities options warrants rights-average price securities future issuance
 plans approved 5802673 $. 6216471
 not approved 1082347 2481032
 6885020 $. 8697503
column includes december 31 2016 1747151 shares granted restricted stock units 936308 shares earned performance stock units 2967046 shares options 2011 23346 shares 128822 stock units payable stock cash 2009 directors equity plan.
 column c 5751655 shares future issuance 2011 ipa plan options stock appreciation rights restricted stock awards rsus psus 464816 shares directors equity plan stock options stock units.
 516653 236654 shares issuable grants january 26 2017 rsus psus earned payable three-year performance.
 average price shares rsus psus.
 shares represent annual incentive bonuses performance payments earned deferred.
 deferred amounts payable compensation plan.
 credited as phantom stock units closing price.
equal to dividend credited as stock units.
 termination employment shares stock equal to units to employee dmicp account distributed to.
 no discount value transfer on stock.
 distributions from newly issued or purchased open market.
 distributions from separate trust dilute common shares.
 not considered in weighted average exercise price.
 dmicp shares outstanding included in dilution calculation.
 item 13.
 relationships related transactions director independence.
 under 201ccorporate governance 2013 policy.
 item 14.
 accountant fees services.
 under 201cproposal 2013 independent auditors.


united parcel service.
 financial condition operations liquidity capital resources december 31 2017 $ 4. 069 billion cash equivalents securities.
 current cash position long-term debt flow adequate capital expenditure dividend share repurchases long-term debt payments.
 funds commercial paper program alternative financing.
 optimize capital structure refinance debt fund cash needs.
.
 2016 2015
 net income $ 4910 $ 3431 $ 4844
 non-cash activities
 pension postretirement plan contributions -7794 -2668
 hedge margin receivables payables -732
 income tax receivables payables -550
 working capital non-current assets liabilities -178 -418
 activities
 net cash $ 1479 $ 6473 $ 7430
represents depreciation amortization gains losses derivative transactions foreign exchange deferred income taxes uncollectible accounts pension postretirement benefit stock compensation non-cash items.
 strong 2015.
 variability company-sponsored pension postretirement benefit plans tax deductions.
 contributions.
 contributions.
 $ 7. 291  $ 2. 461 $ 1. 030 billion 2017 2016 2015.
 remaining contributions international pension.
 benefit plans.
 cash flow impacted working capital taxes hedge margin payables receivables.
 payments taxes $. 064. 913 billion impacted tax deductions.
 hedge margin collateral derivative counterparties $ 732 170 million due settlements contracts.
 worldwide holdings $ 4. 069 billion $ 1. 800 billion foreign subsidiaries.
cash equivalents securities.
 subsidiaries factors timing receipts disbursements.
.
 primary source domestic capital expenditures share repurchases dividend payments.
 cash equivalents securities subsidiaries available for distribution.
 without.
 federal income taxes.
 distributions subject to foreign withholding.
 state taxes.
 reinvested no taxes.


jpmorgan chase.
 2008 annual report $ 1. billion securities exchange commission net capital less $ 5. billion market credit risk standards capital rule.
 december 31 2008 net capital minimum notification requirements.
 october 1 2008.
 securities.
 merged stearns.
. name.
.
.
 clearing. subsidiary clearing settlement services.
 december 31 2008.
. net capital $ 4. billion exceeded minimum requirement $ 3. billion.
 2009 reduced stock dividend $. 38 $. 05 per share april 30.
 quarterly dividends $. 38 2008 2007 $. 34 first 2006.
 dividend policy reflects earnings outlook dividend payout ratios capital alternative investment opportunities.
 restrictions.
 page 84 24 29 205 211 page.
table shows dividend payout ratio net income.
.
 2007
 114% 114 % 34% 34 %
 firm issued $ 6. billion $ 1. billion stock april 23 august 21 2008.
 october 28 issued.
 $ 25. billion preferred stock warrant purchase 88401697 shares common stock.
 note 24 pages 205.
 september 30 2008 issued $ 11. billion 284 million shares common stock $ 40. 50 per share.
 25 pages.
 31 2008 stock.
 repur chased 168 million shares $ 8. 2 billion average price per share $ 48.
 approved 2007 repurchase program repurchase $ 10. billion $ 8. billion 2006.
. plans.
shares subject to factors market conditions legal considerations capital position internal capital generation investment opportunities.
 repurchase program price targets timetables executed open market privately rule 10b5-1 programs suspended.
 rule 10b5-1 repurchase plan. purchases predefined plan.
 december 31 2008 $ 6. 2 billion repurchase capacity remained current stock repurchase program.
 restrictions capital purchase program page 84 note 24 pages 205 annual report.
 information part ii  item 5 page 17 jpmorgan chase 2019s 2008 form 10-k.


refineries processed 944 crude oil 207 blend stocks.
 table daily oil refining capacity december 31 2008.
.
 garyville louisiana
 catlettsburg
 robinson illinois
 detroit michigan
 canton ohio
 texas
. minnesota
 refineries atmospheric vacuum distillation catalytic cracking reforming desulfurization recovery units.
 refined products heavy oil asphalt.
 aromatics cumene propane sulfur maleic anhydride.
 refineries integrated pipelines terminals barges.
 transportation links intermediate products.
 garyville refinery mississippi river.
 processes heavy crude oil gasoline sulfur asphalt propane propylene isobutane coke.
2006 approved expansion garyville refinery 180 436 projected cost $ 3. 35 billion.
 construction commenced 2007.
 december 31 2008 75 percent complete.
 late 2009.
 catlettsburg kentucky refinery northeastern kentucky bank big sandy river ohio river.
 processes sour crude oils gasoline asphalt diesel jet fuel propane sulfur.
 robinson refinery southeastern.
.
 detroit michigan refinery interstate 75 southwest.
 processes oils gasoline diesel asphalt propane.
 2007 approved heavy oil upgrading expansion project detroit cost $ 2. 2 billion.
 sour oils refining capacity 15 percent.
2008 mid-2012.
 canton refinery 60 miles southeast cleveland.
 processes sour crude oils gasoline kerosene propane sulfur asphalt roofing home heating.
.
 texas city refinery gulf coast 30 miles south houston.
 gasoline propane sulfur aromatics.
.
 refinery.
.
.
.
 canadian crude oils gasoline kerosene asphalt propane.


table summarizes credit instruments at december 31.
 third parties.
 millions 2007
 indemnified securities financing $ 324590 $
 liquidity asset purchase agreements 28800
 unfunded commitments extend credit
 standby letters credit
 81% unfunded commitments expire year.
 represent future cash requirements.
 securities finance securities brokers.
 indemnify fair market value failure.
 collateral funds held not recorded consolidated statement.
 borrowers provide collateral 100% fair market value.
 securities revalued daily.
.
 government securities value $ 333. billion $ 572. 93 billion collateral indemnified securities at december 31 2008 2007.
 collateral invested.
 third-party repurchase agreements against loss.
require repurchase agreement counterparty provide collateral equal 100%.
 collateral not recorded consolidated statement condition.
 $ 333. 07 billion 2008 $ 572. 93 billion 2007 68. 37 billion $ 106. 13 billion invested repurchase agreements.
 cash securities value $ 71. 87 billion $ 111. 02 billion collateral investments.
 asset-backed commercial paper program provide liquidity credit enhancement asset-backed paper program.
 supported liquidity asset purchase agreements back-up liquidity lines of credit majority provided.
 provide direct credit support standby letters of credit.
 commitments totaled $ 23. 59 billion 2008.
 standby letters totaled $ 1. billion.
 customers filed litigation claims strategies.
 investment losses strategies sub-prime investments.
2007 established reserve $ 625 million under-performance fixed-income strategies ssga concerns 2019 investment.
 impacted , lack liquidity


$ 55 million reported 201d balance.
 recovery $ 25 million 2007 reduced cash flows sale. industrial transportation business.
 purchases survivor benefit insurance equity investments.
 cash flows financing december 31.
 2007 2006 2005
 short-term debt 2014 -1222 882 $ -258 (
 repayment debt -1580 -440 -656
 proceeds
 cash change debt $ 1222 $ 1135 -485
 purchases treasury stock -3239 -2351 -2377
 reissuances
 dividends -1380
 excess tax benefits stock-based compensation
 distributions minority interests 2014 -76
 cash financing $ -2547 -3625
 total debt december 31 2007 $ 4. 920 billion up $.billion-end 2006.
 short-term debt commercial paper.
 repayment 90 days commercial paper repayments $ 1. billion november 2007 redemption $ 322 million convertible notes.
 long-term commercial paper $ 4 billion.
 eurobond december july $ 1. 5 billion.
 march long-term debt $ 750 million december 2007 fixed rate note $ 500 million commercial paper $ 1. 25 billion.
 long-term debt share repurchase.
 accelerated purchases treasury stock $ 3. 2 billion shares 2007.
 debt 30% capital 26% 2006.
 securities convertible notes.
 issuer future sales.
 150718 shares common stock acquisition diamond productions.
 proceeds future securities sales corporate purposes.
2007 company established medium-term notes program $ 3 billion.
 2007 issued five-year $ 500 million fixed rate note coupon rate. 65%.
 remaining capacity $ 2. 5 billion december 31 2007.
 $ 350 million remarketable securities remarketed 2007.
 350 million $ 62 million floating notes.
 convertible notes value $ 222 million 31 2007.
 next option november 2012.
 364598 bonds redeemed payout $ 322 million.
 repurchases common stock employee compensation.
 february 2007 authorized two-year share repurchase $ 7. 0 billion 2007 2009.
 december 31 $ 4. 1 billion repurchase.
.


consolidated financial statements investment firm impact foreign exchange rates investment non-.
 operations foreign currency forward contracts debt.
 effectiveness assessed fair value.
-denominated debt spot rates.
 hedges gains losses included consolidated statements income.
 gains losses net investment hedging.
 2013 2012
 hedges $ 150 -233
 currency-denominated debt hedges -147
 gain loss ineffectiveness not material 2013 2012 2011.
 loss earnings 2013 2012 $ 186 million 2011.
 firm designated $ 1. 97 billion $ 2. 77 billion foreign currency-denominated debt 201cunsecured long-term borrowings short- borrowings.
 subsidiaries.
 2013 designated commodities-related swap forward contracts cash flow hedges.
swap forward contracts hedge firm exposure variability cash flows sales energy commodities.
 regression analysis hedge effectiveness.
 cash flow hedge changes cash flows regression analysis coefficient determination 80% slope between 80% 125%.
 gains losses on derivatives included in flow hedges.
 gains losses hedge ineffectiveness included in principal transactions.
 gains $ 14 million 2013.
 hedge ineffectiveness not.
 no gains losses excluded from 2013.
 amounts in hedges reclassified to principal transactions gain loss sale hedged energy commodities. expects reclassify $ 5 million gains flow hedges earnings next twelve months.
 exposure cash two years.
 sachs 2013 annual report


4199466 performance-based options 2005 risk free interest rate 4. 2%. volatility factor market 44% dividend yield zero time exercise 4. 7 years assumption 2. 95 years.
 initial public offering 9 month grant date.
 fair value $ 5. 85.
 estimated black-scholes option pricing model.
 risk free interest rates.
 interest 4. 9%.
 volatility factor 30%.
 dividend yield 0. 5%.
 average life 6. 4 years.
 fair value each option $ 15.
 december 31 total unrecognized compensation cost stock option grants $ 86. 1 million pre-tax income 1. 9 years.
 company limit dilution repurchasing shares.
 repurchased 4261200 shares average price $ 37.
 plan repurchase $ 200 million common stock.
pension plan merger company.
 retirement income plan.
 estimated impact purchase price pension liability less fair value assets cost annuity contracts settlements.
 final settlement after determination 2007.
 net pension plan obligation $ 21. 6 million assumed liabilities $ 8. million supplemental executive retirement plan $ 3. mil postretirement benefit plan.
 reconciliation changes fair value assets february 1 2006 december 31.
 fair value assets acquisition date $ 57369
 return assets 8200
 benefits paid
 value end year $ 64772
 assets.
 assets invested.
 treasury bonds short duration final payment.
 fidelity national information services.
 subsidiaries financial


liquidity monitoring stress testing performed for citi 2019s major entities subsidiaries countries.
 impact liquidity event on balance sheet liquidity position identify funding alternatives.
 scenarios include funding sources market triggers credit ratings funding political economic conditions.
 market conditions company events.
 stress tests mismatches between liquidity sources uses over time.
 liquidity limits set.
 stress tests mismatches calculated varying frequencies daily.
 citi maintains contingency funding plans.
 actions for adverse market conditions stresses.
 short-term liquidity measurement coverage ratio monitors liquidity lcr.
.
 adequate level liquidity needs acute 30-day stress scenario.
lcr calculated hqla net outflows 30-day period factors liabilities deposits unsecured borrowings unused lending commitments derivatives exposures offset by inflows assets maturing within 30 days.
 banks calculate add-on maturity mismatches cash outflows inflows.
 minimum lcr requirement 90% january 2016 to 100% january 2017.
 citi 2019s lcr calculation hqla net outflows billions.
.
.
.
.
 378. 398. 412.
.
 112%
 outflows.
 citi 2019s lcr unchanged year-over-year quarter-over-quarter reduction hqla offset by reduction net outflows reductions long-term debt short-term borrowings.
long-term liquidity stable funding ratio 12-month periods citi uses measures-term liquidity measure 12-month scenario market stresses.
 ratio unencumbered liquidity resources stressed outflows 12-month.
 2014 issued standards nsfr compliance january 1 2018.
 nsfr stability banking organization funding one-year.
 calculated available stable funding required funding.
 ratio greater 100%.
 stable funding equity deposits long-term debt required stable funding long-term assets illiquid.
.
 banking agencies proposed.
 nsfr proposal expected 2016.


management financial results operations $ 19. 5 million decrease interest expense lower balances lines credit investment.
 lower balance 2001 property dispositions lower development level slower economy.
 paid off $ 128. 5 million mortgage loans 2001 $ 85 million unsecured term loan.
 decreases offset interest expense unsecured debt $ 175. million february 2001 decrease interest capitalized decrease development activity.
 earnings rental operations increased $ 28. 9 million $. to $ 254. 1 million 2001.
 service revenues decreased $ 82. 8 million to $ 80. 5 million.
 $ 4. 3 million net general contractor revenues construction lower profit margins.
 businesses slowed economy.
 property management maintenance leasing fee revenues decreased $ 2. 7 million landscaping maintenance revenue sale business 2001.
construction management development income fees profits held for sale program.
 increase revenues $ 2. 2 million 2001 profits sale properties.
 income increased $ 2. 4 million 2001 due $ 1. 8 million gain sale landscape business 2001.
 net profit over $ 9 million.
 gain seven years contract purchase future services.
 service operations expenses decreased $ 4. 7 million 2001 reduced overhead costs.
 savings employee salary costs personnel reductions reduced overhead costs sale landscaping business.
 earnings operations increased $ 32. 8 million to $ 35. 1 million 2001.
 decreased $ 21. 1 million 2000 to $ 15. 6 million reduction.
 cost cutting measures costs.
 income gain sale land depreciable property dispositions gain sales depreciable properties.
2000 2001 company pursued real estate assets investment objectives.
 gain land sales undeveloped land.
.
 recorded $ 4. 8 million asset impairment adjustment 2001 property sold 2002.
 $ 1. 4 million interest rate swap hedge accounting.
 net income $ 230. million $ 213. million 2000.
 fluctuations rental service operations earnings sales real estate.
 gain sales depreciable properties $ 45428 $ 52067
 gain land sales
 impairment adjustment -4800
 $ 45708


duke realty corporation annual report 2012 credit.
 liquidity non-strategic properties market could impact.
 transactions with unconsolidated entities provide liquidity.
 sell properties receive proceeds.
 unconsolidated entities obtain debt financing distribute proceeds.
 property investment leasing/capital costs dividends distributions long-term debt maturities repurchases debt stock contractual obligations.
 asset repositioning strategy industrial medical office properties reducing suburban.
 tenant improvements $ 26643 $ 50079 $ 36676
 leasing costs 31059 38130 39090
 building improvements 6182 11055
 $ 63884 $ 99264 $ 88723
.
 evaluate development acquisition opportunities market outlook economic conditions supply long-term growth potential.
future property investments acquisition development opportunities liquidity issuances debt equity securities generating cash flow disposing properties.
 leasing costs tenant improvements leasing commissions first generation expenditures.
 real estate deferred leasing costs.
 tenant improvements leasing costs rental space second generation expenditures.
 building improvements second generation expenditures.
 liquidity second generation leasing expenditures.
 reduced expenditures in 2012 repositioning investment office properties.
 summary second generation capital expenditures by


31 2008 2007 2006 millions.
 gain disposition adjustment acquired assets obligations -9. 9. -1. 19.
 consulting professional fees 10. 8
 employee severance retention.
 technology integration.
-process research development 38. 6
.
 facility employee relocation 7.
 acquisitions 7. 4.
 sales lease contract terminations 8. 5.
 3. 5. 3
 acquisition integration 68. 5 25. 6.
 gain adjustment assets obligations 2008 adjustment liabilities.
 sale centerpulse land facilities gain $ 5. 1 million settlement pre acquisition contingent liabilities.
 offset $ 13. 4 million impairment charge centerpulse tradename trademark intangibles.
-process research development charges 2008 acquisition.
research development charges 2007 acquisitions endius orthosoft.
 fees third party integration consulting tax compliance logistics human resources legal fees acquired businesses.
 cash equivalents liquid investments maturity three months less cash equivalents.
 carrying amounts valued cost fair value.
 restricted cash escrow insurance coverage.
 inventories slow-moving lower cost first-in first-out.
 property plant equipment cost less accumulated depreciation.
 useful lives ten forty years buildings improvements three eight years machinery equipment.
 maintenance repairs expensed.
 financial accounting standards.
 property impairment value recoverable.
 impairment loss future cash flows less carrying amount.
 loss fair value.
 software costs capitalize development costs preliminary project stage.
software costs include materials services compensation benefits for employees.
 included in property plant equipment balance amortized when software ready over estimated useful lives three to seven years.
 hand-held orthopaedic surgeons joint replacement procedures.
 long-lived assets included in property plant equipment.
 undeployed instruments carried at cost excess obsolete.
 at cost less accumulated depreciation.
 depreciation computed based on estimated useful lives.
 instruments for impairment.
.
 depreciation recognized as selling administrative expense.
 for.
. not amortized subject to annual impairment tests.
.
 fair value to carrying potential impairment.
 determined based discounted cash flow analysis.
.
 quarter.
 if fair value less than carrying value impairment loss recorded.
assets 2013 account sfas.
 142.
 measured fair value.
 determined fair value r h o l d i n g s.
 2 0 0 8 consolidated financial statements job c48761 pcn|02/24/2009 06:10 valid color


consolidated financial statements notes 6 7 fair value cash instruments derivatives sold not purchased 8 fair value assets liabilities.
 table presents assets liabilities fair value.
.
 cash collateral counterparty netting impact derivatives netting fair value hierarchy.
 netting positions level.
 december 2013
 level 1 assets $ 156030 $ 190737
 2 499480 502293
 3
 cash collateral counterparty netting -95350
 fair value $ 600173 $ 638513
 911507 938555
 3 assets 4. 4%. 4 %. 0%.
 fair value 6. 7%. 7 % 7. 4%. 4 %
 1 68412 65994
 2 300583 318764
 3
 collateral counterparty netting -32760
financial liabilities fair value $ 355173 $ 377677
 level 3 liabilities 3. 4%. 8%.
.
 $ 890 billion $ 915 billion december 2013 2012.
 level 3 assets 2013 decreased derivative assets bank loans loans commercial real estate.
 decline credit settlements unrealized losses.
 settlements sales offset purchases transfers.
 liabilities december 2013 decreased liabilities accrued expenses sale majority stake insurance business.
 notes 6 7 8 level 3 cash instruments derivatives assets liabilities unrealized gains losses transfers.
 sachs 2013 annual report


.
 summary outstanding millions.
 december 31
 5.%. % 2020 599
 4. 75%. 75 %
 3. 50%. 50 % 2024
. 60%. 60 % 2044
 2. 875%. 875 % 2026 545
 8. 205%. 205 % january 2027 521
 3. 125%. 125 % 2016 500
 2. 80%. 80 % 2021
 4.%. % 2023
 6. 25%. 25 % 2040
 4. 76%. 76 % 2018
 4. 45%. 45 % 2043
 4. 25%. 25 % 2042 196
 3. 50%. 50 % 2015 599
 5737 5582
 long-term
 5175 4799
 december 31 2015 two facilities $ 400 million.
 2017 $ 900 million-currency.
facility expiring february 2020.
 replaced 20ac650 million credit.
 2016 extended 1 year february 2021.
 representations warranties covenants ebitda interest expense debt.
 borrowings 2017 2020 compliance financial covenants.
 november 13 2015 issued $ 400 million 2. 80%. notes due march 2021.
 proceeds purposes.
 september 30 2015 $ 600 million 3. 50%. notes repaid.
 20 issued $ 600 million 4. 750% 4. 750 % notes may 2045.
.
 august 12 2014 issued $ 350 million 3. 50%. 50 % notes june 2024.
. consolidated debt securities $ 250 million 3. 50% notes 2024 $ 550 million 4. 60%. % notes due june 2044.
plc proceeds capital purposes.


consolidated financial statements table. regulatory capital ratios 1 leverage ratio implemented federal reserve board.
 2013 reflects revised market risk capital requirements.
 capital requirements.
 prior.
 1 capital $ 72471 $ 66977
 tier 2 capital $ 13632 13429
 total capital $ 86103
 risk-weighted assets $ 433226 $ 399928
 1 capital ratio 16. 7%.
 capital 19. 9%. % 1%.
 1 leverage ratio 8. 1%. 7. 3%. %
.
 federal bank regulatory agencies approved revised risk-based capital leverage ratio regulations capital framework.
 banking organizations.
 based 2010 capital framework standards dodd-frank act.
.
.
.
.
 revised capital framework changes regulatory capital effective january 1 2014.
changes include new measure common equity tier 1 regulatory capital ratio.
 definition 1 capital narrowed cet1 perpetual non- cumulative preferred stock.
 requirements.
 minimum capital ratio new capital buffers deductions regulatory capital.
 junior subordinated debt phased out regulatory capital.
 minimum cet1 ratio 4. january 1 2014 4. 5%. january 1 2015.
 tier 1 capital ratio increased. to 5. 6. 1 2015.
 minimum total capital ratio unchanged 8. 0%.
 supplemented capital conservation buffer january 1 2016. until. 5%. january 1 2019.
 introduces counter-cyclical capital buffer excessive credit growth.
 risk-weighted assets.
 federal reserve board satisfactory run changes effect second quarter 2014.
calculation rwas future quarters methodologies 2030 first quarter 2014 basel i capital framework 2030 remaining quarters iii advanced adjusted 2030 first quarter 2015 iii advanced standardized approach.
 goldman sachs 2013 annual report


2.
.
 operations at owned leased facilities.
 new haven connecticut corporate headquarters executive sales research development offices.
 haven connecticut corporate headquarters offices
 dublin ireland supply chain distribution offices 215000
 lexington massachusetts
 bogart georgia
 smithfield rhode island
 zurich switzerland regional executive sales offices 69000
 administrative office space adequate.
 research development manufacturing facility third party.
 lease space.
 foreign countries.
 leased 254000 square feet cheshire connecticut previous corporate headquarters sales offices.
 early termination lease through may 2016.
 2014 purchased fill/finish facility athlone ireland.
 first company-owned fill/finish packaging facility commercial clinical products.
may 2015 announced plans construct new biologics manufacturing facility property dublin ireland completed 2020.
.
.
 received subpoena investigation enforcement sec grant-making activities compliance fcpa.
 alexion recalls soliris securities disclosures.
 october 2015 request doj voluntary production documents compliance.
 cooperating investigations.
 predict duration scope outcome.
 loss probable potential magnitude.
.
 mine safety disclosures.
 applicable.


2017 form 10-k.
 long term economics positive outlook supply demand.
 2022 refinery petrochemical industrial projects refineries oversupplied landscape 2018 industry globalizes refiners local demand export potential.
 petrochemicals healthy demand cost-advantaged supply projects 2018.
 industrial market infrastructure policy changes power decentralized.
 growing demand 2018.
 industrial metrics digital solutions.
 portfolio positioned compete deliver unique solutions.
 optimistic long-term economics flexibility volatility assumptions.
 2016 solar wind additions exceeded coal gas.
 renewable energy.
 renewables cost decline fossil capacity significant impacts.
 long-term outlook strong.
 demand energy supply service intensity advanced technology.
 focused innovative cost-efficient solutions operating economic performance.
environment discussion analysis summarizes factors affecting results operations financial condition liquidity position december 31 2017 2016 2015 read with consolidated financial statements notes.
 amounts millions computed based hundreds.
 may not equal total.
 operate in 120 countries find evaluate drill produce transport process hydrocarbon resources.
 revenue generated from sale products services to independent oil natural gas companies dependent on spending customers for gas exploration field development production.
 spending driven by factors customers forecasts future energy demand supply access resources ability capital programs impact new government regulations expectations for oil natural gas prices cash.
 summarized averages daily closing prices periods.
 2016 2015
 oil prices /bbl 54. $ 43. 64 $ 52.
.
.
.natural gas prices. 99 52. 62 energy brent price barrel


financial condition results operations table presents.
.
 short-duration advances.
 2013
. advances $ 2356 $ 1972 1994
. 1393
 advances $ 3749 $ 3365 3579
-duration advances 2013 increased 2012 low higher liquidity.
 interest-earning assets increased $ 11. 16 billion 2013 $ 7. 38 billion 2012.
 higher cash collateral securities finance transactions.
 interest-bearing deposits increased $ 109. 25 billion 2013. billion 2012.
 higher non.
 transaction accounts growth business.
 levels influenced servicing business market conditions.
.
.
 short-term borrowings declined $ 3. 79 billion 2013 4. 68 billion 2012 higher deposits liquidity.
 long-term debt increased $ 8. 42 billion 2013 from.billion year 2012.
 increase reflected issuance $ 1. billion extendible notes state bank $ 1. billion senior subordinated debt may 2013 $ 1. billion debt november 2013.
 offset maturities $ 1. 75 billion senior debt second quarter 2012.
 interest-bearing liabilities increased $ 6. 46 billion 2013 $ 5. 90 billion higher cash collateral securities finance transactions.
 factors affect net interest revenue margin client liabilities central banks.
.
 interest rates yield curves regulatory capital liquidity standards discount accretion securities yields purchased.
 proceeds pay downs maturities highly-rated securities.
 federal mortgage-backed.
.
.
 market conditions.
 global interest rates dictate net interest revenue margin.