2006 plan 2008 vested nonforfeitable.
 awards granted after 2008 employees consultants waste industries.
 subsidiaries not republic services.
.
 31 2010. million shares common stock future grants 2006 plan.
 binomial option-pricing model.
 compensation expense straight period retirement.
 volatility one-year historical rolling average.
 risk-free interest rate federal reserve rates.
 historical data estimate future option exercises.
 valuation.
 weighted-average estimated values stock options 31 2010 2009 2008 $ 5. 28 $ 3. 79 $ 4. 36 per option assumptions.
 volatility 28. 6%. 6 %. 7%. 7 %. 3%. 3 %
-free interest. 4%. 4 %. 4%. 7%. 7
 dividend. 9%. 9 %.1%. 1 %. 9% 9 %
 life.
 life 7
 forfeiture rate. 0%. 0 %. 0 %. 0% 0 %
 services.
 financial statements


unregistered securities.
 repurchase equity securities table purchases equity october 1 to december 31 2016.
 average price plans programs maximum dollar value.
 average price dollar value
 october 1 - 31 2099169 $ 22. $ 218620420
 november 1 - 30 1454402 $ 22. 1453049 $ 185500851
 december 1 - 31 1269449 $. $ 155371301
 4823020 $ 22.
 shares common stock $ 0. 10 per share withheld employee stock compensation plans tax withholding obligations.
 repurchased no withheld shares october 2016 1353 november 10749 december 2016 total 12102 withheld shares.
average price per share fiscal quarter three-month period calculated tax withholding obligations paid shares acquired repurchase program note 5 withheld acquired repurchase program.
 february 2016 board authorized repurchase program $ 300. 0 million common stock.
 february 10 2017 board approved new repurchase program $ 300. 0 million common stock.
 new authorization addition 2016.
 no expiration date.


arconic subsidiaries consolidated financial statements per-share amounts.
 accounting policies.
.
 accounting principles united states management judgments estimates assumptions.
 affect assets liabilities.
 revenues expenses.
 results differ resolution matters.
 prior year amounts reclassified current year.
 separation alcoa.
 publicly-traded companies arconic.
. alcoa corporation effective november 1 2016 transaction.
 financial results alcoa corporation prior separation reflected consolidated discontinued operations excluded continuing operations results.
 cash flows income alcoa not segregated included consolidated cash flows income.
 note c information separation.
.
 financial statements include arconic companies interest.
 intercompany transactions eliminated.
 investments affiliates influence accounted cost method.
evaluates arconic variable primary beneficiary.
 consolidation if.
 variable interest entities requiring consolidation.
.
 buys products provides services alcoa separation negotiated prices.
 transactions not material to financial position arconic.
 2017 disposition remaining common stock no related.
.
 liquid investments maturity three months or less.
 inventory.
 lower cost net realizable value half.
 inventories-in-out method.
 other inventories average-cost methods.
 properties plants equipment.
 recorded cost.
 depreciation straight-line method estimated useful lives.
 table weighted-average useful lives structures machinery equipment reporting segment.
 transportation construction
 gains losses from sale assets recorded income.
 repairs maintenance incurred.
 construction capitalized construction costs.
properties plants equipment reviewed for impairment carrying amount recoverable.
 recoverability determined comparing cash flows carrying amount.
 impairment loss carrying amount exceeds cash flows.
 loss calculated as excess carrying value


goldman sachs group.
 subsidiaries consolidated financial statements firm 2019s brokerage clearing businesses agrees to clear settle transactions with other brokerage firms.
 obligations secured by assets client 2019s account proceeds from transactions cleared settled.
 firm may issue loan guarantees fraud misappropriation environmental liabilities.
 maximum payout.
 management believes unlikely material payments no material liabilities recognized in statements financial december 2016 2015.
.
 firm provides counterparties indemnifies against losses breach.
 provide indemnifications against.
 tax laws.
 provide indemnifications counterparties additional taxes owed payments withheld.
 tax laws.
 indemnifications standard contractual terms business.
 no stated notional amounts contingencies triggering obligation not expected.
firm maximum payout under guarantees.
 management believes unlikely material payments no liabilities recognized in financial december 2016 2015.
.
 group.
 guarantees securities gs finance corp. subsidiary.
 guaranteed obligations goldman sachs co.
. gs bank exceptions.
.
 guarantees obligations subsidiaries transaction-by transaction.
.
 maximum payout subsidiary guarantees guaranteed obligations subsidiaries. liabilities not disclosed.
.
 dividends per share $ 2. 60 2016. 55 2015. 25 2014.
.
 dividend $ 0. 65 per common share paid march 30 2017.
 share repurchase program common equity.
 open-market purchases determined by current capital position market conditions price trading volumes common stock.
repurchasing common stock firm confirmation federal reserve board actions.
 table common stock repurchased program.
 2016 2015 2014
 share repurchases 36. 22.
 cost per share $ 165. $ 189. 171.
 cost $ 6069 4195 5469


.
 2019s common equity stockholder matters issuer purchases securities graph compares annual return common stock 500 stock index peer group five years 2009.
 investment stock s&p 500 index $ 100 december 31 2004 dividends reinvested.
 2005 2006 2007 2008
 loews common stock. 135. 92 179. 47 219. 123. 160. 62
 s&p 500 index. 104. 91 121. 128. 80. 74.
 loews peer group. 133. 59 152. 24 174. 46 106. 30 136.
 ace.
 chubb. ensco. noble spectra transocean.
 travelers.
 paid quarterly cash dividends loews common stock since 1967.
 dividends $ 0. 0625 per share paid 2009.
 paid quarterly dividends carolina separation.
 dividends. share quarters 2008.


repurchase equity securities table purchases october 1 to december 31 2012.
 purchased average price paid plans programs maximum value.
 average price value
 october 1 - 31 13566 $ 10. 26 $ 148858924
 november 1 - 30 5345171 $ 9. 98 5343752 $ 195551133
 december 1 - 31 8797959 $ 10. 87 8790000 $ 99989339
 14156696 $ 10. 53 14133752
 common stock $ 0. 10 per share withheld employee stock compensation plans tax withholding obligations.
 repurchased 13566 shares october 1419 november 7959 december 2012 22944 shares.
average price per share fiscal quarter three-month period calculated tax withholding obligations paid shares acquired stock repurchase program note 5 withheld acquired repurchase program.
 february 24 2012 board approved share repurchase program $ 300. 0 million common stock.
 november 20 2012 2012 share repurchase program $ 400. 0 million.
 february 22 2013 new share repurchase program $ 300. 0 million common stock.
 new authorization addition 2012 program.
 no expiration date.


revenues segment table summarizes millions.
 2016 2015 2014
 $ 4566 $ 3846 $ 3679
 4250 2360 2198
 corporate 425 390 536
 consolidated revenues $ 9241 $ 6596 $ 6413
 integrated financial solutions north american regional community bank savings institutions transaction processing payment channel wealth management digital channels risk compliance services.
 corporate liquidity wealth management solutions.
 clients banks credit unions commercial lenders government institutions merchants commercial organizations.
 integrated solutions multi-year contracts recurring revenues.
 innovation product integration information security compliance.
 solutions core processing ancillary applications.
.
.
 services ancillary branch automation back office compliance support.
 digital solutions internet mobile ebanking.
retail delivery applications institutions operations interaction channels.
 focus innovation multi multi-host solutions integration seamless experience.
 leader mobile banking electronic banking internet mobile devices accounting software.
 corporate electronic banking solutions commercial treasury cash management multi-bank collection disbursement.
 systems provide full accounting reconciliation.
 fraud risk management compliance solutions. decision solutions applicants accounts fraud.
 know-your-customer new account decisioning account transaction management fraud management collections.
 proprietary models data sources fraud.
 advanced authentication predictive analytics artificial intelligence databases fraud deposit transactions.
 outsourced risk management compliance solutions requirements.


2007 annual report 61 warranties snap-on warranties lines future costs.
 note 15.
 minority interests equity earnings unconsolidated affiliates tax millions 2007 2006.
 minority interests -4. 9. -3. 7 3. -3. 5 3.
 equity earnings loss net tax 2.
 $ -2. 5 2. -3. 7 3. -1. 4.
 minority interests subsidiaries $ 17. 3 million $ 16. 8 million 2006 long-term liabilities.
 investments unconsolidated affiliates $ 30. 7 million $ 30. 6 million.
 foreign currency translation financial statements foreign subsidiaries translated.
 dollars.
. assets liabilities current rates income expense average exchange rate.
 adjustments recorded income loss balance.
exchange transactions pretax losses $ 1. 7 million 2007 $ 1. 2 million 2006 gain $ 0. 7 million 2005.
 gains losses reported income net consolidated statements earnings.
 uncertainty quantifying income tax positions.
 record benefits years.
 record largest benefit 50% likelihood settlement taxing authority.
 no tax benefit recognized financial statements.
 interest penalties recognized income tax expense.
 included tax liability balance sheets.
 deferred income taxes temporary differences assets liabilities.
 enacted tax rates.
 effect change tax rates assets liabilities recognized enactment date.
 note 8.
 earnings share calculations computed net earnings weighted-average number common shares.
 dilutive effect options purchase common shares calculated treasury stock method.
snap-on dilutive shares year-end 2007 2006 2005 731442 911697 584222.
 options purchase 493544 23000 612892 not included diluted earnings per share prices greater average market price stock effect earnings share anti-dilutive.
 stock-based compensation january 1 2006 company adopted.
-based payment modified prospective method.
.
 cost employee services awards equity instruments grant-date fair value.
 cost recognized.
 no compensation cost recognized awards.
 grant-date fair value share options


compares shareholder return common stock standard 500 composite stock index industrials 2005 2010 closing price common stock $ 12.
 assumes investments $ 100 2005 common stock indices reinvestment dividends.
 201020092008200720062005 s&p 500 index consumer durables apparel index value $ 100 investment 2005 common stock 500 durables apparel reinvestment dividends.
 $ 101. $ 76. 42. 54. 51.
 s&p 500 index $ 115. $ 121. $ 77. 97. $ 111.
 s&p industrials index $ 113. $ 126. $ 76. 92. $ 116.
&p consumer durables apparel index $ 106. $ 84. 56. $ 76. $ 99.
2007 board authorized purchase 50 million shares stock.
 december 31 2010 repurchase 27 million shares.
 repurchased retired three million shares $ 45 million 2010.
 months december 31 2010.


reinsurance commissions fees revenue increased 1% foreign currency translation 2% offset 1% decline dispositions acquisitions.
 organic revenue flat capital market transactions advisory business offset declines global facultative placements.
 operating income increased $ 120 million 10% 2010 to $ 1. 3 billion 2011.
 income margins. 3%. up 70 points. 6%.
 driven revenue growth reduced costs restructuring offset expense increases investment lease termination costs receivables write-off foreign currency exchange rates.
.
 december
 revenue $ 4501 $ 2111 1267
 operating income
 margin.
 hewitt human resource consulting.
 operates globally.
 results october 1 2010.
hr solutions segment generated 40% revenues 2011 provides human capital services health benefits advises benefit programs.
 health executive benefits workforce absence management administration data-driven health compliance employee commitment investment.
 january 1 2012 risk solutions segment.
 retirement actuarial services defined contribution investment tax pension administration.
 compensation compensation planning executive reward strategies salary survey benchmarking market share studies sales force effectiveness expertise financial services technology industries.
 human capital talent change effectiveness.
 benefits administration expertise defined benefit health welfare services.
 efficient less costly solutions.
 human resource processing outsourcing employee data benefits payroll


46 allowance loan lease losses.
 january 1 $ 4036 4347
 charge-offs -1289 1289
 credit losses
 unfunded loan commitments letters credit
 december 31 $ 3609 4036
 charge-offs loans. 57%. 73%.
 loan lease losses loans.
 commercial lending charge-offs -249 $ -359
 consumer lending -828
 -1289 1289
-offs loans
 commercial lending. 22%. 35%. %
 consumer lending.
 charge-offs $ 134 million interagency first quarter 2013.
 credit losses $ 643 million 2013 987 million 2012.
 improved credit quality risk consumer loan delinquencies cash flows loans.
 commercial lending credit losses decreased $ 102 million 74% 2012.
consumer lending credit losses decreased $ 242 million 29% 29 % 2012.
 2013 nonperforming loans 117% ( 117 %.
 2012 124% 124 %.
 ratios 72% ( 72 % 79% ( 79 % ) excluding $ 1. 4 billion $ 1. 5 billion consumer loans purchased impaired loans.
 loans charged off after 120 180 days due not nonperforming.
 purchased impaired loans performing delinquency interest allowance below.
 table 35.
 balance increases risk factors asset quality charge-offs portfolio.
 interagency portfolio growth balance $. 4 billion % to $ 3. 6 billion december 2013 2012.
 note 7 allowances loan lease losses unfunded loan commitments letters 6 purchased loans.
operational risk loss from inadequate processes human factors external events.
 includes losses non- compliance laws failure fiduciary responsibilities litigation legal actions.
 errors unauthorized transactions fraud disruption system breaches misuse sensitive information regulatory governmental actions fines penalties legal expenses judgments settlements.
 risk management technology compliance business continuity.
 business needs regulatory expectations risk management priorities program governance risk processes transparent reporting.
 board determines approach operational risk structure.
 risk metrics limits reporting structure.
 executive management.
 risks controls reporting risk committees sub-committees.
 pnc financial services group.
 2013 form 10-k


part ii item 5.
 market registrant common equity stockholder matters issuer purchases equity securities.
 series a b c traded nasdaq global select market 201d symbols 201cdisca 201d 201cdiscb 201cdisck.
 table high low sales prices per share! finance.
 c high low fourth quarter 23. 73 16 26 22 third quarter 27. 27 19 second quarter 29. 29 24 first quarter 29. 26 29 27 28 fourth quarter 29. 28 third quarter 26. second quarter 29. 23 first quarter 29. 24 29 34 24 february 21 2018 approximately 1308 75 1414 record holders series a b c.
 not include shareholders banks brokerage houses institutions include each institution one shareholder.
not paid cash dividends series a b c no intention.
 payment cash dividends determined by board directors after earnings financial condition credit facility restrictions dividends.
 table repurchases common stock three months ended december 31 , 2017 millions per share amounts.
 series c shares purchased average paid per share shares purchased plans approximate dollar value shares october 1  2017 - 2014 november 1 amounts fees commissions costs repurchases.
 stock repurchase program management authorized to purchase common stock open market prevailing prices accelerated stock repurchase agreements subject to stock price business market conditions.
 authorization expired october 8 , 2017 not repurchased shares common stock since.
 funded may fund stock repurchases through cash debt.
future authorization fund stock repurchases through revolving credit future financing transactions.
 no repurchases series a b 2017 series c three months ended december 31 2017.
 company announced stock repurchase program august 3 2010.
 agreement with advance/newhouse to repurchase quarterly series c-1.
 months december 31 2017.
 no planned repurchases series c-1 first quarter 2018 no a c three months december 31 2017.
 cumulative shareholder return a b c compared with companies 500 stock index peer group.
 viacom.
.
 assumes $ 100 invested december 31 2012 in series a s&p 500 index peer group companies including reinvestment dividends years ended 2013 2014 2015 2016 2017.
31.
 100. 139. 42 106. 23 82. 27 84. 53 69.
 100. 144. 61 116. 45 85. 91. 70 78.
 100. 143. 35 115. 28 86. 22 91. 56 72.
 100. 129. 60 144. 36 143. 31 156. 98 187. 47
 100. 163. 16 186. 87 180. 10 200. 65 208.


2014mergers acquisitions eldertrust merger february 5 2004 cash $ 184 million.
 nine assisted living independent living five skilled nursing two med office financial office portfolio. properties leased operators annual cash rent $ 16. 2 million escalation. terms four to 11 years. acquired limited partnership units $ 12. 50 per unit excluding 31455 class c units.
 owns eldertrust properties.
 funded $ 101 million equity purchase price cash $ 85 million proceeds 2003 sale facilities revolving credit facility april 17 2002. ownership eldertrust properties $ 83 million property debt liabilities. $ 33. 5 million unrestricted cash.
 acquisition purchase method.
 preliminary estimated values assets acquired liabilities assumed acquisition.
 subject refinement.
merger reflected in financial state acquisition february 5 2004. computing values allocation purchase price subject refinement.
 real estate investments $ 162
 cash equivalents 28
 assets 5
 assets acquired $ 195
 notes payable debt 83
 accounts payable liabilities 2
 liabilities assumed 85
 net assets acquired $
 january 29 2004 14 purchase agreements brookdale living communities.
 14 facilities purchase price $ 115 million. affiliates lease. 15 years guaranteed brookdale annual rent $ 10 million escalating. 5%. 75% consumer price index.
 acquisitions $ 41 million non- recourse property debt facilities balance paid cash revolving credit facility. encumbers seven facilities.
january 29 2004 company completed four brookdale facilities price $ 37 million. acquisition remaining ten facilities expected conditions.
 consummation not conditioned no assurance remaining acquisitions.
 transactions trans healthcare.
 november 4 2002 company subsidiary ventas realty completed $ 120. 0 million transaction trans healthcare. privately owned long-term care hospital company. $ 53. 0 million sale leaseback $ 67. 0 million loan mezzanine loan.
 sale senior loan december 2002 investment $ 70. 0 million.
 realty purchased 5 properties leasing lease. properties four skilled nursing facilities one retirement community. lease ten years provides annual base rent $ 5. 9 million. revenue parameters rent three percent 50% consumer price index.
.
37


purchases equity securities shares price plans programs dollar value plans #1 october 1 2014 31 2005.
.
.
.
.
.
.
.
.
.
.
.
.
.
 1119600. november 1 2014 30 2005.
.
.
.
.
.
.
.
.
.
.
.
.
. 738200 december 1 2014 31 2005.
.
.
.
.
.
.
.
.
.
.
.
.
 1147700.
 shares purchased average price paid share plans programs maximum dollar value plans programs millions
 #1 october 1 2014 31 2005 1119600. 285
 #2 november 1 2014 30 2005. 738200
 #3 december 1 2014 31 2005 1147700. 1147700
. 216
share purchases table $ 500. million repurchase program april 2005.
 expiration date.
 expired terminate.
 intend additional purchases $ 216. 2 million additional $ 275. 0 million program january 2006.


audited financial statements.
 eastman 50 percent interest operating partner primester cellulose acetate kingsport.
 equity method.
 net investment december 2007 2006 $ 43 million $ 47 million deficits long-term owed primester line credit.
.
 eastman 50 percent interest nanjing eastman chemical.
 hydrocarbon resins.
 accounted equity noncurrent assets.
 investment $ 7 million $ 5 million.
 2007 agreement green rock energy.
.
.
. industrial gasification facility beaumont texas.
 eastman owns 50 percent interest operational 2011 intermediate chemicals hydrogen methanol ammonia petroleum.
 joint venture accounted equity method noncurrent assets.
 december 31 2007 investment $ 26 million.
 project faustina hydrogen products..
 petroleum coke anhydrous ammonia methanol.
 owned green rock.
 intends 25 percent equity operations maintenance site management services purchase methanol long-term contract.
 capital costs $ 1. 6 billion.
 financing end 2008.
 built.
 parish louisiana complete 2011.
 2005 equity investment genencor international.
 $ 417 million net $ 2 million fees.
 book value $ 246 million pre-tax gain $ 171 million.
.
 payables liabilities december.
 accrued payrolls compensation
 taxes
 post-employment obligations
 interest payable
 bank overdrafts
 payables liabilities
 obligations estimate payments.


oil corporation financial statements lease rental expense 2008 2006 rental $ 245 209 172.
 rental $ 245 $ 209 172
 sublease rentals
 net rental expense $ 267 $ 242 $ 193
 excludes $ 5 million $ 8 million $ 9 million united states steel 2008 2007 2006 leases.
.
 contingencies commitments legal actions.
.
 statements.
 management viable enterprise.
 federal state local foreign laws regulations.
 control pollutants remediation hazardous waste disposal.
 penalties noncompliance.
 december 31 2008 2007 liabilities remediation $ 111 million $ 108 million.
 estimate remediation costs penalties.
 recoverable costs states clean-up underground storage tanks $ 60 $ 66 million december 31 2008 2007.
defendant refining companies 20 cases three states methyl tertiary-butyl ether contamination.
 received seven toxic substances control act notice letters two states.
 followed litigation.
 mtbe cases consolidated multidistrict litigation southern new york.
 nineteen cases damages water supply wells.
 new jersey natural resources damages contamination groundwater mtbe.
 only mtbe contamination case defendant.
 defending cases.
 settlement discussions majority.
 expect impact financial position cash flows.
 lawsuit virginia refinery distributed contaminated gasoline wholesalers retailers damage storage tanks dispensers equipment lost profits business disruption damages.
 remediation operations deny permanent damages.
 class action certification 2007.
 tentative settlement agreement.
 notice class members.
 approval required.
fairness hearing first quarter 2009.
 proposed settlement impact results financial position cash flows.
 provided guarantees indebtedness other companies.
 perform guaranteed party obligations.
 performance guarantees agreements.


pension plan assets include public equities bonds cash equivalents real estate funds partnerships hedge funds.
 held in master trust overseen by investment committee.
 managed active passive strategies.
 managers invest asset classes appointed.
 investment committee.
 minimum maximum values each asset class 31 2018.
. equities 36% ( 36 %
 international equities 29% ( 29 %
 fixed income securities 50% ( 50 %
 alternative investments 25% 25 %
 objectives return benefit obligations meet funding requirements maintain liquidity requirements.
 objectives reducing volatility competitive return diversification risks.
 objectives determined based risks opportunities.
 decisions historical return risk characteristics.
 updates asset allocations periodically.
company uses analytics asset mix considers obligation characteristics duration liquidity funding requirements rates return rebalancing distribution returns.
 allocations vary strategy changes market value fluctuations timing benefit payments company contributions.
 company determines allocation master trust investments asset classes.
 utilizes investment strategies executed structures with external investment managers.
 selection performance risk fiduciary responsibility experience policies processes.
 investment performance monitored tracked consultants.
 plan assets fair value.
 company employs pricing sources independent pricing vendors valuations third- party appraisals.
 investments in equity securities valued at last sales price active market.
 level 1.
 valued at last trade price broker's quote non-active market level 2.
investments in fixed-income securities valued by pricing services.
 market transactions relationships between categorized level 2.


adopted fasb interpretation.
 45 201d accounting disclosure requirements indirect guarantees indebtedness fiscal 2003.
 accounting pronouncements.
 lease agreements three office buildings san jose california residual value guarantees.
 agreements prior december 31 2002 disclosed note 14.
 indemnifications varying scope intellectual property infringement.
 costs significant unable estimate impact future results.
 commitments milestone retention payments acquisitions.
 purchases technology assets fiscal 2003 employee retention agreements $ 2. 2 million.
 required payments satisfaction conditions.
 indemnify officers directors events.
 indemnification covers lifetime.
 maximum future payments unlimited director officer insurance coverage exposure future amounts.
 estimated fair value indemnification agreements minimal.
partnership ventures provided indemnification to granite ventures independent capital firm partner events good faith.
 unable maximum future payments risk payments remote.
 accrue costs future obligations undetected bugs discovered after product installed.
 accrual fiscal 2003 relates to new releases creative suites products fourth quarter 2003.
 table summarizes activity balance at november 29 2002 november 28.
 2014 $ 5554 $ -2369 3185
 advertising expenses sales marketing expense.
 expenses fiscal years 2003 2002 2001 $ 24. 0 million  $ 26. 7 million $ 30. 5 million.
 foreign currency hedging instruments financial accounting standards.
.
 derivative instruments recognize assets liabilities measure fair value.
 gains losses


2009 company extended contractual life 4 million vested share options 6 employees.
 recognized additional compensation expense $ 1 million year ended december 31 2009.
 restricted stock units performance-based rsus.
 grants executive officers employees.
 new employees.
 number rsus dependent internal profitability targets market performance targets.
 rsus cliff-vest quarter-end 30 black-out period three years.
 number shares zero to stretch defined personal income taxes withheld.
 market condition factored estimated fair value per unit compensation expense based achieving internal profitability targets.
 rsus without compensation expense based fair value per unit.
 2007 granted performance-based rsus employees annually october 1 2008 through 2011 market condition.
 catch-up provision additional year vesting unvested amounts.
compensation expense based fair value per unit term grant less estimated forfeitures.
 summary changes performance-based rsus weighted average fair value thousands.
 units
 nonvested december 31 2008 1188. 65
 granted 38. 16
 vested. 30
 forfeited.
 nonvested december 31 2009 1415 25.
 fair value shares vested performance-based rsus 2009 2008 $ 2 million $ 3 million.
 no vestings 31 2007.
 fair value rsus estimated grant date monte carlo simulation approach.
 future stock returns.
 calculate future vesting percentages discounted present value risk-free rate expected value.


compares shareholder return common stock 500 composite stock index 2008 2013 closing price common stock $ 22. 77.
 assumes investments $ 100 december 31 2008 common stock indices reinvestment dividends.
 $ 350. 300. 250. 200. 150. 100. 50. graph.
 2010 2011 2012 2013
 128. $ 120. 165 229.
 s&p 500 index $ 125. 144. 225.
&p industrials index $ 120. 151. 150. 243.
&p consumer durables apparel index $ 136. 177. 191. 232. $ 316.
 2007 board authorized purchase 50 million shares common stock.
 december 31 2013 authorization repurchase. 6 million shares.
 first quarter 2013 repurchased retired 1.7 million shares common stock 35 million 2013 grant.
 purchased since 2013.


xpedx north american distributes products commercial printers building services away-from-home markets facility manufacturers packaging warehousing delivery.
 leading wholesale distribution north 122 warehouse locations 130 retail stores united states mexico cana owns manages 200000 acres forestlands properties states south.
 remaining forestlands managed portfolio.
 sold.
 sold 2007.
.
.
 50:50 joint venture pulp paper business russia.
 three paper mills bratsk ust-ilimsk koryazhma pulp capacity 2. 5 million tons.
 harvesting rights timberland forest areas 12. 8 million acres 5. 2 million hectares.
 brand trademarks international paper.
 non-durable industrial goods processed foods poultry meat agricultural products.
factors profitability raw material energy freight manufacturing effi product mix.
 results cbpr business.
 net sales 2009 increased 16% $ 8. billion $. billion 2008. billion 2007.
 operating profits 95% higher double 2007.
 higher shipments cbpr operating costs 294 million lower raw material freight costs 295 million offset lower price realizations $ 243 million higher corporate overhead 85 million costs acquisition cbpr 3 million higher other costs $ 7 million.
 profits $ 849 million alternative fuel.
 plant closure costs $ 653 million shutdown mill $ 87 million.
.
 net sales profits cbpr business.
 sales $ 7. billion 2009. billion 2008 3. billion 2007.
profits 2009 $ 791 million million excluding fuel closure cbpr integration $ 322 million 414 million cbpr inventory closure 2008 $ 305 million 2007.
 tainerboard box shipments lower weaker demand.
 sales price lower weaker economic.
 margins


stock awards recognized accelerated amortization method vesting tranche separate date estimated value.
 compensation expense adjusted forfeitures.
 recognized straight-line service period.
 statements administrative expenses.
 adopted improvements employee share payment accounting forfeitures.
 modified retrospective transition method adjustment earnings no effect financial position reversal forfeitures.
 total compensation expense plan $ 10. 8 million $ 12. 2 million $ 6. 9 million 2017 2016 2015.
 capitalized $. 2 million.
 unrecognized compensation expense $ 14. million.
 recognized remaining 1. 2 years.
 cash paid settlement plan shares $ 4. 8 million $ 2. million $ 1. million 2016 2015.
 grants stock plan.
stock earned service performance market 1 to 5 years.
 service awards earned employed valued market price.
 reaches stock price return monte carlo simulation.
 performance operational goals valued market price probability.
 remeasures value adjustments until settled final compensation.
 average grant fair value per share restricted stock awards 2015 $ 84. 53 $ 73. $ 68. 35 .
 key assumptions valuation calculations awards.
 risk free rate. 65% (. 65 % ) 1. 57%. 57 %. 49%. 49 % ). 27%. 27 %. 10% (. 10 % ). 05%. 05 %
 dividend yield 3. 573% ( 3. 573 %. 634%. 634 %. 932% ( 3. 932 %
 20. 43%.43 % 21. 85%. 85 % 18. 41%. 41 % 19. 45%. 45 % 15. 41%. 41 % 16. 04%. 04 %
 requisite service period 3 years
 risk free rate zero coupon.
 minimum. 25 years 2017 2016 2015.
 maximum 3 years.
 dividend yield closing stock price.
 volatility historical implied volatility calculations.
 standard deviation daily returns trailing month average.
 minimum volatility 3 2 1 year 2017 2016 2015.
 maximum 1 year 1 year 2 years 2017 2016 2015.
 requisite service period programs.


expansion retail segment required substantial investment assets infrastructure operating lease commitments personnel expenses.
 capital expenditures $ 132 million 2005 total expenditures $ 529 million.
 3673 employees operating lease commitments $ 606 million.
 company substantial costs terminate close stores.
 affect results financial condition.
 gross margin last three fiscal years.
 2004 2003
 net sales $ 13931 $ 8279 $ 6207
 cost sales
 gross margin $ 4043 $ 2259
 percentage 29. 3%.
 gross margin increased 2005 to 29. net sales from. 2004.
 margin increased favorable pricing commodity components higher margin software sales shift direct sales higher revenue fixed production costs.
 increases offset lower margin ipod sales.
 anticipates gross margin under pressure price competition especially ipod product line.
company expects gross margin decline first quarter 2006 shift revenue lower margin products ipod itunes music store.
.
 no assurance current margins targeted achieved.
 gross margins downward pressure pricing pressures increased competition compressed product life cycles cost raw material manufacturing services changes product mix higher sales lower prices lower gross margins.
 company expects pricing actions.
 gross margins affected quality warranty costs stimulate demand.
 international operations financial results affected exchange rates.


mastercard financial statements municipal bond portfolio tax exempt bonds diversified across states sectors.
 average credit quality double-a.
 short-term bond funds invest fixed income securities corporate mortgage.
 company holds investments ars.
 exempt.
 federal income tax interest rate resets every 35 days.
 collateralized student loans 95% to 98% principal interest.
.
 2008 auction mechanism.
 positions failed auctions.
 pay interest redeems.
 reclassified level 3.
 december 31 2010 market illiquid issuer call redemption activity periodically.
 2009 company sell ars auction market calls.
 table roll-forward investments january 1 2009 to december 31 2010.
 significant unobservable inputs level 3 millions.
 december 31 2008 $ 192
unrealized losses issuer calls 5
 increase fair value 11
 value december 31 2009 180
 calls par -94 ( 94
 13
 increase fair value 7
 fair value december 31 2010 $ 106
 company evaluated estimated impairment ars portfolio temporary.
 considered factors reasons decline investments recovery decline historical anticipated duration events.
 evaluation-than-temporary impairments quantitative qualitative process subject risks uncertainties.
 credit quality market liquidity timing issuer calls interest rates.
 unrealized losses not related credit quality lack liquidity.


annual goodwill impairment test first to second quarter.
 with long-range planning forecasting.
 change preferable delay avoid impairment charge.
 company assessment goodwill non-amortizable assets impairment quantitative assessment annual impairment analysis.
 fair value unit to carrying value.
 exceeds impaired.
 discounted cash flow model market approach earnings multiples companies tobacco industry.
 december 31  2017 carrying value goodwill $ 7. 7 billion related to ten reporting units.
 estimated fair value exceeded carrying value.
 value non-amortizable assets discounted cash flow model relief-from-royalty method.
 carrying value.
 models include management assumptions forecasting operating cash flows subject to changes.
management considers historical experience information fair values estimated assumptions consistent with hypothetical marketplace participant.
 since march 28 2008 spin-off altria group. not recorded charge earnings for impairment goodwill non-amortizable intangible assets.
 marketing advertising costs incur costs products promotions.
 expensed.
.
 uncertainties estimating performance compliance.
 volume-based incentives management assesses estimates likelihood achieving targets records reduction revenue.
 promotions relies on estimated utilization rates historical experience.
 changes in assumptions change financial position operations cash flows.
 employee benefit plans.
 pensions postretirement health care postemployment benefits severance.
 record annual amounts plans calculations.
.
 include actuarial assumptions discount compensation turnover.
 review assumptions trends.
.
modifications amortized future periods.
 assumptions obligations experience.
-average discount rate assumptions pensions postretirement plans.
 pension plans. 51%. 51 %. 52 %
 postretirement plans. 79%. 79. 68%. %
 changes decrease 2018 pre-tax pension postretirement expense $ 164 million $ 199 million 2017 excluding.
 higher return $ 21 million lower amortization $ 12 million unrecognized actuarial gains/losses $ 10 million offset $ 8 million.
 return discount expense.
 fifty-point decrease discount 2018 pension postretirement expense $ 38 million $ 54 million.
 fifty-basis-point return 2018 pension expense $ 45 million.
.
.


december 31 2017 future payments non-cancelable leases.
 2018 $ 9127
 2019 8336
 2020 8350
 2021 7741
 2022 7577
 9873
 future lease payments $ 51004
 rent expense leases $ 9. 4 million $ 8. 1 million $ 5. 4 million 2017 2016 2015.
 2012 building santa clara california headquarters.
 lease term 120 months commenced august 2013.
 owner building construction.
 completion 2013 involvement sale-leaseback accounting.
 involvement post construction transferability $ 4. million letter credit sublease fees higher.
 lease financing obligation payments reduction principal financing obligation interest expense land lease expense.
 lease term de-recognize net book values remaining financing obligation.
assets $ 53. 4 million financing obligation $ 39. 6 million $ 41. 2 million.
 $ 1. 9 million $ 37. 7 million short-term long-term financing obligations.
 land lease expense $ 1. 3 million 2017 2016 2015.


repurchase shares insider trading laws trading blackout.
 regulations amend cancel repurchase program.
 december 31 2018 repurchased 4510000 shares common stock.
 unsecured revolving credit facility $ 2. 25 billion expires june 2023.
 march 2018 lenders amended agreement commitments $ 1. 75 billion to $ 2. 25 billion expiration date june 2020 to march 2023.
 terms covenants unchanged.
 increase commitment $ 500 million request extensions expiration date two one-year periods.
 interest rates based libor.
 commercial paper program $ 150 million letters of credit.
 indebtedness guarantee obligations.
 outstanding commercial paper program backed revolving credit facility increased march 2018 $ 1. 60 billion to $ 2. 10 billion.
table provides credit facility commitments sub-limit revolving commercial paper limit capacity december 31 2018 2017 limit 31 2018.
.
.
.
.
.
.
.
 2262 2177 2017.
.
.
.
.
.
.
.
 1673 average interest rate short-term borrowings december 31 2018 2017 2. 28%. 28 % 1. 24%. 24 %.
 table percentage capitalization december 31.
 2017 2016 shareholders' equity 40. 4%. 41 0% 42 1%.
 long-term debt stock 52. 4%. 4 6%. 46 4%.
 short-term long-term debt 7. 2%. 4%. 11 5%.


table contents concentrations sources materials product components essential business available from multiple obtained from single limited sources.
 company competes for components with mobile communication media devices personal computers.
 many components subject to industry-wide shortage pricing fluctuations financial condition operating results.
 uses custom components new products utilize custom components one source.
 new technologies capacity constraints exist until yields matured manufacturing capacity increased.
 supply delayed outsourcing shipments financial condition operating results.
 business performance time to obtain original alternative source.
 availability components prices if common components instead.
 agreements for supply many components no guarantee agreements.
 to risks of supply shortages price increases financial condition results.
 hardware products manufactured by outsourcing partners primarily in asia.
 concentration manufacturing small number single locations.
 outsourcing partners suppliers for products.
 results could if production commitments.
 purchase commitments cover to 150 days.
 leases equipment facilities retail space under noncancelable arrangements.
 off-balance sheet financing.
 major facility leases 10 years multi-year renewal options.
 leases retail space five to 20 years 10 years.
 future minimum lease payments under noncancelable were $ 5. billion  $ 3. 6 billion retail space.
 rent expense $ 717 million $ 645 million $ million in 2014 2013 2012.
 lease payments.
 75.
 662 676
 645
 593
 2019 534
 1877
 $


tax expense.
 millions 2017 2016
 operating income $ 5272 $ 4570 4664 5287 4674 4695
 nonoperating income
 before taxes $ 5240 $ 4462 $ 4595 5255 4566 4625
 tax $ 270 $ 1290 1250 $ 1539 1352 1312
 tax rate. 2%. 2 %. 9%. 9 %. 2%. 3%. %. 6%. 6 %. 4%. 4 %
 income $ 5272 4570 4664 5287 4674 4695 nonoperating income before taxes $ 5240 4462 4595 5255 4566 4625 tax expense $ 270 1290 1250 1539 1352 1312 tax rate. 2%. 9%. 2%. 3%. 6%. 4%. 4 % non-gaap financial measures.
net income.
 tax expense 2017 reflects $ 1. 2 billion benefit 2017 tax act.
 tax rate affected foreign jurisdictions income earned.
 jurisdictions lower tax.
 united kingdom channel islands ireland netherlands.
.
 income tax expense $ 106 million tax revaluation deferred tax assets $ 1758 million noncash tax benefit $ million repatriation undistributed foreign earnings profits.
 noncash expense $ 16 million tax changes $ 173 million tax benefits stock-based compensation awards $ 151 million new accounting guidance.
.
 adjusted effective tax rate 29. 3%. 2017 noncash deferred tax revaluation benefit $ 1758 million $ 16 million.
 repatriation tax expense $ 477 million excluded one-time.
.
tax expense 2022 noncash benefit $ 30 million revaluation deferred income tax liabilities benefit $ 65 million nonrecurring items resolution outstanding tax matters.
 tax rate 29. 6%. 2016 excluded noncash benefit $ 30 million.
.
 2022 noncash benefit $ 54 million revaluation deferred tax liabilities 2022 benefit $ 75 million nonrecurring items losses tax structure resolution outstanding tax matters.
 tax rate 28. 4%. 2015 excluded net noncash benefit $ 54 million.
 consolidated statement financial condition excluding assets collateral securities lending agreements consolidated sponsored investment funds.
 balance sheet exclude assets liabilities interests stockholders equity cash flows.
views adjusted balance sheet non-gaap financial measures economic presentation company assets liabilities advocate non-gaap measures information.
 separate assets liabilities collateral agreements maintained by blackrock life subsidiary registered life insurance assets funding pension contracts.


2019s analysis jpmorgan chase co. annual report net interest income excluding markets activities reviews excluding activities performance lending investing deposit-raising.
 data non-gaap measures exclusion markets interest income.
 exclusion provides non business trends comparable institutions lending investing deposit-raising.
 net interest income excluding december 31 millions 2015 2014 2013 net interest income markets-based net interest income excluding markets $ 39807 39067 $ 38524 interest-earning assets $ 2088242 $ 2049093 1970231 1595017 1538832 1466013 interest yield 2013. 14%. 18%. 23%. yield markets-based assets. excluding markets. 50%. 54%. 63%. effect hedging derivatives.
 taxable-equivalent amounts.
reconciliation net interest income firm.
 results page 80.
 activities increased $ million $ 39. 8 billion interest-earning assets increased $ 56. 2 billion $ 1. 6 trillion.
 increase income higher loan balances lower interest expense deposits.
 offset lower loan yields investment securities.
 higher deposits.
 yield 4 points 2. 50%. 2014 activities increased $ million $ 39. 1 billion interest-earning assets increased $ 72. 8 billion $ 1. 5 trillion.
 increase higher yields investment securities lower expense higher loan balances.
 offset lower yields.
 assets higher balance deposits.
 yield 9 basis points 2. 54%. 2014
 31
 net interest income 2013 basis $ 44620
markets-based net interest income 4813 5552 5492
 $ 39807 $ 39067 38524
 assets $ 2088242 $ 2049093 $ 1970231
 markets-based interest-earning assets 493225 510261 504218
 $ 1595017 $ 1538832 $ 1466013
 yield 2013 2. 14% 2. 14 %. 18%. 18 %. 23%. 23 %
-based assets. 97. 09.
 excluding markets 2. 50%. 50 %. 54%. 54 %. 63% 2. 63 % )
. income excluding markets investing deposit-raising.
 non-gaap measures exclusion markets-based net interest income.
 exclusion analyze-markets business trends comparable.
interest income excluding markets december 31 millions 2015 2014 2013 $ 44619 44016 markets-based income 4813 $ 39807 $ 39067 $ assets $ 2088242 2049093 1970231 493225 510261 $ 1595017 1538832 1466013 yield. 14%. % 18%. 23%. 50%. 54%. %. 63%. 63 % hedging derivatives.
 taxable-equivalent amounts.
 reconciliation net interest income.
.
 income markets-based activities increased $ 740 million $ 39. 8 billion interest assets increased $ 56. billion $ 1. 6 trillion.
 increase interest income higher loan balances lower interest expense deposits.
 offset lower loan yields lower investment securities.
 higher deposits.
 yield 4 basis points. 50%.2014 interest income activities increased $ 543 million $ 39. 1 billion interest-earning assets $ 72. 8 billion $ 1. 5 trillion.
 higher yields lower interest expense higher loan balances.
 offset lower yields.
 assets higher balance deposits.
 yield 9 points 2. 54%. %


aes corporation financial statements 2014 31 2010 2009 2008 recourse debt maturity annual maturities millions.
 2011 $ 463
 2012
 497
 2015
 3152
 recourse debt $ 4612
 redeemed $ million 8. 75%. second priority senior secured notes 2013.
 redeemed redemption price. 458%. % principal amount.
 pre-tax loss redemption 2013 notes $ 15 million year december 31 2010 statement operations.
 july 29 2010 second amendment.
 fourth credit reimbursement agreement july 29 2008 company subsidiary guarantors lending institutions agreement.
.
fifth credit agreement adjusted terms conditions commitment revolving credit loan increased to $ 800 million final maturity date extended to january 29 2015 changes facility fee interest rate based on credit rating at libor + 3.%. undrawn fee 0. 625%. per annum company incur additional term loan revolver commitments exceed $ 1. 4 billion negative pledge. cap on first lien debt of $ 3. 0 billion.
 debt obligations under guaranteed by subsidiaries point hawaii warrior run eastern energy.
 obligations secured by capital stock domestic subsidiaries 65% foreign subsidiaries


american tower corporation subsidiaries financial statements 2006 ten interest rate swap agreements four forward swap agreements cash cash flow hedges.
 eight american tower swaps $ 450. million fixed rates 4. 63%. 88%. two spectrasite swaps $ 100. million rate 4. 95%.
 four forward swap agreements $ 900. million rates. 73%. 10%.
 three interest rate swap instruments one cap acquired spectrasite.
 2005 not cash flow hedges.
 swaps $ 6. 7 million $ 300. million fixed rate 3. 88%.
 cap $ 175. million fixed rate. expired february 2006.
 unrealized gains short securities $ 10. 4 million interest rate swap agreements $ 5. 7 million tax.
 net unrealized gain $ 6. million tax.million loss interest rate swaps cash flow hedges reclassified $. 7 million income tax benefit $. 2 million operations december 31 2006.
.
 company leases land office tower space leases.
 leases renewal options increases lease payments.
 escalation clauses recognized non-cancelable term.
. future rental payments leases renewal periods failure loss tower site revenues.
 payments december 31 2007.
 2008 217969
 2009
 2010
 2011
 2012
 $ 3483072
 rent expense leases 2007 2006 2005 $ 246. 4 million $ 237. million $ 168. 7 million.


item 10.
 directors executive officers.
 annual meeting stockholders securities exchange commission 120 days fiscal year.
 11.
 executive compensation.
 201d annual meeting stockholders securities exchange commission 120 days fiscal year.
 12.
 ownership owners management.
 equity compensation plans employees officers directors.
 fiscal year september 27 2003 shares common stock option plans approved.
 equity compensation plan securities options warrants.
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. compensation plans security holders
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1116615 $ 8. 12 535257.
 plan category securities issued options warrants rights weighted-average exercise price securities future issuance plans excluding
 equity compensation plans approved 2111138 $ 9. 25 826200
 not approved 1116615 $ 8. 12 535257
 3227753 $ 8. 86 1361457
 1986 stock option plan 1990 1995 1999 incentive plan 2000 employee stock purchase plan.
 plans acquisition fluoroscan imaging systems 1996.
 1994.
.
 footnote 6 consolidated financial statements.
 1997 employee equity incentive plan 2000 acquisition equity incentive plan.
 1997 employee equity incentive.
 attract retain employees consultants advisors performance goals long-term growth.
1997 plan employees consultants advisors not executive officers directors.
 administered by committee three members.
 receive non-qualified stock options


consolidated financial statements competitive environment economic business conditions.
 pullmantur brand spanish portu- guese latin american markets diversified sourcing spain largest market.
 2012 european economies insta bility sovereign debt impact auster ity measures.
 spanish econ omy impacted uncertainty.
 costa concordia incident lingering effect impact future uncertain.
 pullmantur goodwill.
 spanish economy worsened challenging environment.
 unemployment rate reached 26% ( 2012 expected rise 2013.
 international monetary fund gdp growth. 8%. revised 2013 gdp projections contraction 1. 3%. reduced 1. 5%. january 2013.
 austerity measures tax cuts benefits exemptions implemented.
 consumer confidence spending.
 deterioration in bookings guests spain 2013 wave season.
factors cash flow projections net yield assumptions expectations future capacity growth.
 determined implied fair value goodwill pullmantur unit $ 145. 5 million impairment charge $ 319. 2 million.
 recognized earnings fourth quarter 2012 reported assets.
 no goodwill impairment charges prior periods.
.
.
 spanish economy weakens.
 worse future cash flows additional impairment charge may required.
.
 intangible assets reported balance sheets.
 intangible 2014pullmantur trademarks names $ 218883 $ 225679
 impairment charge
 foreign currency translation adjustment
 204866
 fourth quarter 2012 annual impairment review trademarks names discounted cash flow model relief-from-royalty method.
 royalty rate based comparable agreements tourism hospitality industry.
trademarks names relate pullmantur used discount rate goodwill impairment test.
.
 deterioration spanish economy cash flow projections pullmantur net yield capacity growth.
 fair value trademarks carrying value.
 impairment charge $ 17. 4 million trademarks fair value $ 204. 9 million.
 charge recognized earnings fourth quarter 2012 reported pullmantur assets consolidated statements income.
 note 13.
 value measurements.
 spanish economy weakens other markets.
./27/13


aes corporation financial statements 2014 2011 average interest rate.
 interest rate swaps option agreements $ 3. 6 billion non-recourse debt 31.
 swap agreements change variable interest rates 1. 44%. to 6. 98%.
 option agreements fix interest rates 1. to 7.
 agreements expire 2016 through 2028.
 multilateral loans bilaterals multilaterals development banks institutions.
 non-recourse debt $ 704 million $ 945 million december 31 2011 2010 excluded non debt included current long-term liabilities.
 debt scheduled reach maturity annual maturities.
 non-recourse debt
 december 31 2011 aes subsidiaries construction $ 1. 4 billion unused credit facilities construction costs.
 $ 1.2 billion unused revolving credit lines working capital debt service reserves business needs.
 used borrowings letters credit combination.
 average interest rate borrowings 14. 75%. december 31  2011.
 october 3 2011 dolphin subsidiary ii.
 wholly-owned subsidiary indenture wells fargo bank.
 issuance $ 450 million. 50%. senior notes due 2016 $ 800 million. notes 2021. acquisition dpl.
 november 28 2011 dolphin ii merged dpl dpl surviving entity obligor.
 2016 notes. 25% 2021 notes included bonds non-recourse detail table.
 note 23 2014acquisitions.
 interest 2016. accrues. 50%. per year payable april 15 october 15 each year april 15 2012.
 2016 july 15  2021.25 % 2021 notes redeem 2016 notes. 25%. 2021 notes amount


less than one year.
 company offers twelve-month warranty.
 policy replacement defective products.
.
 transaction price reflects expectations consideration fixed variable amounts.
 fixed direct customers distributors.
 variable consideration sales unknown.
 credits price protection sales rights return stock rotation.
 price protection discounts margin decrease.
 rotation allows returns reduce slow-moving discontinued obsolete product inventory.
 liability distributor credits consideration based historical experience rates economic conditions contractual terms.
 distributor activity consistent with provisions estimates.
 2019 2018 sales distributors were $ 3. 4 billion net variable consideration liability balances $ 227. 0 million $ 144. 9 million.
 receivable unconditional right receive consideration.
 payments due within 30 to 45 days invoicing significant financing component.
 no material impairment losses accounts receivable.
no material contract assets liabilities on consolidated balance sheets.
 company warrants products meet specifications repair replace defective products for twelve-months from title.
 accruals recorded for product warranty issues.
 expenses during 2019 2018 2017 not material.
.
 accumulated income includes transactions reported consolidated statement shareholders 2019.
 components at november 2 2019 3 2018 foreign currency translation adjustment unrealized gains securities derivatives pension plans.
 adjustment
 november 3 2018 $ -28711 ( -14355 -15364 -58440
 loss income before reclassifications -1365 -140728 -31082 -173165
 reclassified loss 2014
 tax effects 27883
 income -1365 -103660 -24344 -129359
november 2 2019 -30076 2014 -118015 118015 -39708 39708 -187799 187799
 30076 2014 118015 39708 187799 analog devices.
 financial statements 2014


containerboard kraft papers.
 kapstone owns victory packaging packaging facilities. canada mexico.
 included financial results kapstone corrugated packaging segment since.
 september 4 2018 acquisition schl fcter print pharma packaging.
 leading provider differentiated paper packaging solutions german-based supplier leaflets booklets.
 acquisition automotive platform footprint.
 financial results consumer packaging segment.
 january 5 2018 acquisition assets plymouth packaging.
.
 on demand systems manufactured panotec italian manufacturer packaging.
 enhanced platform differentiation innovation.
 custom on-demand corrugated packaging sized.
 continuous board.
 westrock acquired plymouth equity interest panotec right distribute equipment.
 canada.
 integrated 60000 tons containerboard plymouth annually.
included financial results corrugated packaging segment since acquisition.
.
 acquisitions investment.
.
 unsuccessful mergers acquisitions investments divestitures.
.
 year 2018 net sales $ 18289. $ 16285.
 segment income $ 1790. $ 1707.
 differentiated paper packaging solutions.
 changing cost price environment.
 net sales $ 18289. million increased $ 2003. million. 3%.
 due kapstone acquisition higher selling price corrugated consumer packaging segments.
 offset absence recycling sales procurement lower volumes unfavorable foreign currency impacts decreased land development net sales.
 income increased $ 82. 6 million corrugated packaging.
kapstone operations selling price productivity offset lower volumes economic downtime cost inflation maintenance outage expense lower land development income.
 higher cost inflation corrugated consumer packaging offset fiber deflation.
 virgin fiber freight energy wage costs.
 generated $ 2310. 2 million net cash $ 1931. 2 million 2018.
 capital allocation


inc.
 financial statements 2014 value stock options 2007 $ 133. 9 million $ 133. million 2006 $ 57. 8 million 2005.
 exercises 2005 $ 62. 7 million $ 49. 2 million $ 36. 4 million.
 compensation expense nonvested options $ 23. 6 million december 31 2007.
. 6 years.
 restricted stock awards value market price common stock.
 compensation expense period three years.
 average grant fair value $ 63. $ 54. $ 32. 2007 2006 2005.
.
 stock 31 2006.
.
.
.
.
 value shares vested 2005 $ 3. 4 million $ 2. 3 million $. 6 million.
 compensation expense nonvested stock awards $ 44.million 31 2007.
 compensation. 4 years.
 no terms stock awards.


commitment expiration commercial commitments millions dollars 2010.
 expiration 2010 2011 2012 2013 2014 2014
 credit facilities $ 1900
 sale receivables 600
 guarantees 416  29  76 24 8 214 65
 letters credit 22
 commercial commitments $ 2938  $ 651  $ 1924 214
 credit facility used december 31 2009.
 $ 400 million sale receivables program utilized december 31 2009.
 guaranteed obligations headquarters building equipment financings operations.
 letters credit drawn december 31 2009.
 railroad transfers accounts receivable union pacific receivables.
 bankruptcy subsidiary sale receivables facility.
 sells interest accounts receivable investors.
capacity sell interests was $ 600 million $ 700 million at 2009 2008.
 outstanding interest $ 400 million $ 584 million at.
 2009 upri reduced interest receivables.
 not included in financial statements.
 supported by $ 817 million $ 1015 million at 2009.
 interest retained was $ 417 million $ 431 million.
.
 sold at carrying value approximates fair value no gain loss.
 value fluctuate receivables affected by business volumes credit risks default dilution.
 change 2009.
 credit rating below investment grade investors discontinue facility.
 railroad sold receivables servicing asset liability servicing fees.
 collected $ 13. 8 billion $ 17. 8 billion 2009 2008.
 upri used proceeds to purchase new receivables.
 costs sale receivables program $ 9 million $ 23 million $ 35 million 2009 2008 2007.
 interest paper rates fees costs.
 decrease 2009 costs rates interest.


international networks segment owns operates networks december 31 2013 global networks regional networks.
 discovery channel 271 kids 76
 animal planet 200 sbs nordic 28
 tlc real time travel 162 dmax
 science 81 history
 investigation 74
 home health 64 espanol.
 turbo 52 familia.
 world 23 gxt
 sbs nordic networks sweden norway denmark.
 dmax networks. austria switzerland ireland.
 networks segment owns operates free-to-air networks 285 million viewers middle east december 31 2013.
 include dmax fatafeat quest real time giallo frisbee focus k2.
.
 primary sources revenue fees operators cable dth satellite advertising.
 markets vary.
.advanced digital television markets others analog varying investment digital.
 long-term distribution relationships renew contracts annually.
 distribution revenue international networks on subscribers rates market demand content.
 advertising revenue development pay free-to-air markets subscribers viewership demographics popularity programming sell commercial time channels.
 advertising sales business in-house teams external.
 advertising revenue growth from subscriber viewership growth localization strategy shift spending from analog multi-channel.
 mature markets growth revenue increasing viewership pricing launching new services.
 2013 distribution  advertising revenues 50% 47% 3% total net revenues.
 2014 agreement with tf1 acquire interest eurosport international increasing ownership stake from 20% to 51% million.
 acquisition excludes eurosport france subsidiary.
retain 20% equity eurosport france acquire 31% 2015 contingent regulatory matters.
 eurosport network focuses tennis skiing cycling reaches 133 million homes 54 countries 20 languages.
 brands hd asia-pacific.
 acquisition growth pay television.
 tf1 49% non-controlling interest two and half years acquisition.
 floor value equal fair value acquisition exercised 2015 priced fair value july 1 2016.
 acquisition second quarter 2014 regulatory approvals.


financial statements 2006 2005 2004 gains losses securities.
 cost securities based identification method.
 merchandise inventories lower cost retail.
 excess current cost $ 5. million 2006 $ 6. 3 million 28 2005.
.
 reserves decreased. million. 2 million 2005 2004 increased $. 7 million 2003.
 costs warehousing distribu capitalized inventory.
 2005 expanded inven departments profit 10 to 23.
 impact reduction gross profit decrease inventory $ 5. 2 million.
 pre-opening expensed incurred.
 property recorded cost.
 depreciation amortization estimated lives.
 land improvements
 furniture equipment
 improvements leased properties amortized lease term.
impairment long-lived assets company evaluates carrying value operating perform future cash flows appraised values.
 net book value cash flow analysis.
 value less cost sell.
 recorded impairment charges $ 0. 5 million $ 0. 6 million 2004 2003 $ 4. 7 million carrying value homerville 2004.
 $ 0. 6 million 2005 $ 0. 2 million 2004 2003 carrying value negative sales trends cash flows.
 charges included expense.
 assets long-term invest- ments debt issuance costs utility security deposits life insurance policies goodwill.
 vendor rebates new store volume purchase promotional allowances.
 inventory purchases cost goods.
.
 rent expense recognized over term lease.
company records minimum rental expense lease term possession store opening improvements fixtures.
 lease escalation recognizes rent expense records difference deferred rent.
 receives tenant allowances recorded deferred rent amortized rent expense.
 difference calculated expense paid reflected liability accrued expenses consolidated balance sheets approximately $ 25. 0 million


management financial condition results deposits provide products custody accounting administration pricing foreign exchange cash management financial asset management securities finance investment advisory.
 generate client deposits stable low-cost source funds.
 global custodian clients place deposits currencies.
 invest deposits investment securities short duration financial instruments.
 higher deposit inflows quarter year.
 deposit balances reflective funding period-end.
 table 33 client deposits average balance.
 balance 2014 wholesale certificates deposit $ 13. 76 billion balances 2013 $ 6. 87 billion $ 2. 50 billion.
 short-term funding commercial paper program $ 3. billion $ 2. 48 billion $ 1. 82 billion outstanding december 31 2014 2013.
 on-balance sheet liquid assets liquidity management strategy.
assets provide liquidity raise funds pledging securities borrowings sales.
 access to global capital markets funding from wholesale investors.
 state street bank membership allows liquidity against collateral.
 short-term secured funding securities lent sold.
 transactions short-term overnight collateralized by securities.
 balances $ 8. 93 billion $ 7. 95 billion as december 31 2014 2013.
 maintains line of credit with $ 800 million securities processing operations.
 cancelable.
 no balance outstanding.
 issue unsecured senior debt securities exceed $ 5 billion.
 $ 4. 1 billion available for issuance.
 issue additional $ 500 million subordinated debt.
 universal shelf registration public offering sale of debt capital common stock depositary shares preferred stock warrants.
issued past may issue future securities.
 future market conditions funding needs.
 credit liquidity high investment-grade ratings credit agencies.
 ratings diverse earnings market position risk management capital ratios diverse liquidity sources liquidity monitoring procedures preparedness regulatory developments.
 high ratings limit borrowing costs enhance liquidity unsecured funding depositors potential market debt offer products markets transactions.
 reduction liquidity capital


american tower corporation subsidiaries customer-related $ 75. million network location $ 72. 7 million.
 amortized 20 years.
 goodwill deductible tax.
 international rental management segment.
 2012 348 communications sites telef mexico.
 279 communications sites purchase price $ 63. 5 million value added tax $ 8. million.
 table preliminary allocation purchase consideration assets acquired liabilities assumed value acquisition price.
 8763
 non-current 2332
 property equipment 26711
 intangible assets 21079
 non-current liabilities
 net assets $ 57536
 goodwill
 customer-related intangibles $ 10. million network location $ 10. 4 million.
 amortized 20.
 goodwill deductible tax.
 international rental management.
november 16 2012 purchase 198 sites.
 december 14 188 $ 64. 2 million tax $ 8. 9 million.


compares expeditors international washington. 5-year shareholder return stock s&p 500 nasdaq.
 transportation index data nasdaq.
 assumes investment common stock indexes dividends $ 100 12/31/2012 12/31/2017.
 return assumes reinvestment dividends.
 5-year return. s&p 500.
 expeditors international. $ 100. $ 113. 52 $ 116. 07 $ 119. 142. $ 176. 08
 standard's 500 index. 132. 39 150. 152. 170. 84
 nasdaq transportation. 133. 76 187. 65 162. 193. 79 248.
 nasdaq industrial transportation. 141. 171. 91 218
 stock price performance not indicative future price performance.
 financial data 2016 2013..
 6920948 6098037 6616632 6564721 6080257 revenues1.
 2319189 2164036 2187777 1981427 1882853 earnings attributable shareholders.
 430807 457223 376888 348526 diluted earnings attributable shareholders 2. 69 1 1 earnings attributable shareholders share
. 1 dividends common share
. 80 64 cash dividends
 150495 145123 135673 124634 123292 cash used share repurchases.
 478258 629991 550781 261936.
1448333 1288648 1115136 1285188 1526673.
 3117008 2565577 2870626 2996416 shareholders 2019.
 1991858 1844638 1691993 1868408 2084783 shares.
 181666 182704 190223 196768 206895 shares.
 179247 181282 188941 196147 205995-gaap revenues services.
 management reconciliation revenues revenues.
 forward-looking statements securities litigation reform act 1995 annual report fiscal year december 31 2017 statements section securities act 1933 securities exchange act 1934.
 forward-looking statements.
 approval authorized executive officer securities commission.
statements preceded words phrases likely result expected expect continue anticipated "provisional "probable future identify 201cforward-looking statements private securities reform act 1995.
 statements qualified by reference discussion item 1a factors results differ statements.
 risks item 1a not exhaustive.
 reference to other sections report additional factors impact expeditors' business financial performance.
 expeditors operates competitive complex changing global environment.
 new risk factors emerge not possible management predict all assess impact business results differ forward-looking statements.
 guarantee results.
 shareholders expeditors with securities analysts against policy to disclose non-public confidential commercial information.
 shareholders assume expeditors agrees with statement report analyst.
expeditors policy against financial forecasts confirming others.
 reports securities analysts projections not responsibility expeditors.


government bonds level 2 assets valued market prices or comparable securities yields credit ratings.
 real estate pooled funds level 3 assets estimated fair value underlying properties.
 revenue expense growth terminal capitalization discount rates.
 real estate.
 pooled funds valued shares year end based fair value underlying investments.
 level 3 estimated fair value.
 bids brokers credit quality default risk discount rates capital market liquidity.
 insurance contracts level 3 assets contract value estimated fair value.
 underlying investment.
 contributions benefit payments 2016 $ 79. 3.
 contractual regulatory requirements.
 retirements cost reduction actions.
 $ 65 to $ 85 defined benefit pension plans 2017.
 driven by contractual regulatory requirements dependent timing retirements business.
benefit payments future service.
.
 2017 150. 45.
 152. 48.
 2019 157. 50.
 2020 161. 51.
 2021 166. 54.
 909. 306.
 estimated payments based future events.
 payments vary.
 nonleveraged employee stock ownership plan air products chemicals.
 retirement savings plan.
 established 2002.
 401 ( k ) deferral component.
.
.
 treat dividends esop shares ordinary.
 deduct dividends.
 common stock 3031534 30 2016.
 contributions include core contribution employees retirement


35% 35 % due to undistributed foreign earnings no.
 taxes reinvested outside.
 september 24 2011 company had deferred tax assets $ 3. 2 billion liabilities $ 9. 2 billion.
 management believes forecasted income future reversals recover deferred tax assets.
 realizability valuation allowance.
 internal revenue service federal income tax returns 2004 2006 proposed adjustments.
 contested.
 examining 2007 through 2009.
 audit issues 2004 resolved.
 subject to audits state local foreign tax authorities.
 provisions for adjustments.
 outcome audits.
 adjust income taxes.
 table financial information statistics three years ended september 24 2011 millions.
 2010 2009
 cash equivalents marketable securities $ 81570 $ 51011 $ 33992
receivable $ 5369 $ 5510 3361
 inventories $ 776 $ 1051 455
 working capital $ 17018 20956 20049
 cash flow $ 37529 $ 18595 10159
 cash equivalents securities increased $ 30. 6 billion.
 operating $ 37. 5 billion offset property equipment $ 4. 3 billion intangible assets $ 3. 2 billion business acquisitions $ 244 million.
 balances capital purchases liquidity 12 months.
 portfolio rated securities credit exposure.
 loss.
 september 2010 $ 54. 3 billion $ 30. 8 billion securities foreign subsidiaries.
.
.
 taxation.
 expenditures $ 4. 6 billion $ 614 million retail facilities $ 4. billion other expenditures


october 31  2009 total hedges $ 38 million.
 fair value balance sheet immaterial.
 june 30 2009 company interest rate swap transactions swapped $ 375 million fixed rate debt 5. 0%. floating interest rate debt july 1  2014.
 $ 375 million 5. 0%. annual interest payment paid two installments january july maturity $ 375 million annual three-month libor plus 2. 05%. 34%. october 31 2009 interest payment four installments january april july october maturity date.
 libor rate set quarterly three months.
 swaps fair value hedges.
 inception zero changes reflected carrying value balance.
 adjusted equal.
 gain loss hedged item- rate borrowings benchmark interest rate risk gain loss swaps net income.
income statement classification gain loss swaps note net income effect
 other income $ 6109 $ -6109 $ 2014
 amounts earned owed swap agreements accrued reported interest expense.
 no ineffectiveness.
 market risk instruments results from currency exchange rate interest rate movements risk transactions assets liabilities.
 counterparties major international financial institutions high credit ratings.
 significant risk nonperformance monitors credit ratings.
 derivative transactions subject collateral security arrangements provisions dependent credit ratings.
 contract amounts derivative financial instruments volume represent exposure credit risk.
 counterparties limited obligations exceed obligations company.
 risk counterparty default significant.
 records fair value derivative financial instruments in financial statements other current assets accrued liabilities.
derivative recognized earnings equity.
 cash flow hedges recorded reclassified earnings contract matures.
 derivatives reported earnings.
 hedging october 31 2009 $ 375 million interest rate swap agreements value hedges $ 128. million analog devices.
 statements


administrative expense.
 eliminated 749 positions.
 incurred $ 54. million net expenses cash.
 recorded $. 4 million restructuring charges reduced $. million 2017 $ 54. million 2016.
.
 2015 project century north american manufacturing network capacity reductions.
 broadened supply chain.
 approved restructuring plan manufacturing facilities australia berwick united kingdom new zealand.
 287 positions incurred $ 31. 8 million net expenses $ 12 million cash.
 $ 1. million charges 2017 $ 30. million 2016
.
 restructuring plan west chicago illinois plant.
 484 positions incurred $ 109. million net expenses $ 21 million cash.
 $ 6. million 2018 $ 23. million 2017 $ 79. million 2016.
.
 restructuring plan close joplin missouri plant.
action affected 125 positions incurred $ 8. million expenses less than $ 1 million.
 recorded. 4 million restructuring charges 2018. 3 2017 6. 2016.
 completed.
 paid cash restructuring $ 53. 6 million 2018 107. 8 million 2017 122. 6 million 2016.
 incur $ 130 million project-related costs recorded.
 $ 11. 3 million 2018 43. 9 million 2017 57. 5 million.
 $ 10. 9 million 2018 46. 9 million 2017 54. 5 million 2016.
 completed 2019.
 charges costs consolidated statements earnings.
 sales $ 14. 41.
.
.
-related costs $ 11.


consolidated financial statements 2014 amounts millions per share contingent obligations under subsidiaries credit facilities media payables operating leases.
 guarantees $ 255. 7 $ 327. 1 december 31 2008 2007.
 non-payment subsidiary pay.
 31 2008 no material assets pledged security guarantees.
 structured acquisitions contingent purchase price obligations reduce risk negative future performance.
 agreements purchase additional equity interests subsidiaries.
 amounts based on future financial performance timing foreign currency exchange rates.
 recorded liability amounts not determinable distributable.
 acquisition obligations additional cost.
 acquisitions deferred payments fixed determinable acquisition date.
 record liability additional cost.
 deferred payments purchases contingent future employment former owners compensation expense.
 acquisition agreements employment terms former owners.
future expense not allocated assets liabilities amortized over employment terms former owners.
 table details estimated liability contingent acquisition obligations amount paid earliest date.
 options exercisable discretion minority owners december 31 2008.
 estimated acquisition payments $ 5. included payments 2009 not 2010 until.
 payments contingent operating performance targets conditions agreements subject revisions earn.
 estimated future contingent acquisition obligations payable cash.
 2013
 deferred acquisition payments $ 67. 32. 30. 4. 139.
 call options 11. 34. 73. 70. 262.
 contingent acquisition payments 79. 66. 103. 75. 402.
 cash compensation expense.
 $ 76. $ 65. 103. 74. 75..
 entered acquisitions put call options similar terms conditions.
 included contingent acquisition obligation earliest option exercisable.
 revisions 2008 topic.
-98 redeemable securities


schedule page 6 hotels resorts. subsidiaries. real estate depreciation 31 2017 millions change depreciation amortization real estate years 2016 2015.
 31 2014 $ 5283
 558
 -148
 2015 5666
 -159
 -130
 2016 5949
 amortization 563
 -247
 sale
 december 31 2017 $ 6272
 cost real estate federal income tax $ 10698 million december 31 2017.
 total cost excludes construction-in-progress properties.


part ii item 5.
 2019s common equity matters issuer purchases common stock traded new york stock exchange.
 february 13 2019 10000 holders.
 board directors declared cash dividend $ 0. 235 per share payable march 15 2019 holders 2019.
 no assurance dividends.
 discretion earnings financial position cash requirements.
 equity compensation plans item 12.
 transfer agent registrar stock computershare shareowner services llc 480 washington boulevard jersey city new jersey ( ) 363-6398 sales unregistered securities.
 repurchases purchases october 1 2018 december 31  2018.
 shares purchased average price paid share plans programs maximum value.
total number average price paidper share maximum dollar value
 october 1 - 31 3824  $ 23. 30 $ 338421933
 november 1 - 30 1750 $ 23. 77
 december 1 - 31
 5574 $ 23. 45
 total shares common stock value $ 0. 10 per share repurchased withheld employee stock compensation plans offset tax withholding obligations.
 average price per share three calculated tax withholding obligations by withheld shares.
 february 2017 board authorized share repurchase program $ 300. 0 million common stock.
 february 2018 $ 300. 0 million addition 2017 share repurchase program.
july 2 , 2018 announcement acxiom acquisition share repurchases suspended reduce increased debt no shares repurchased programs.
 no expiration dates.


dominion long-term purchases capacity energy utilities producers.
 december 31 2002 42 non-utility contracts capacity 3758 megawatts.
 table minimum commitments.
 2003 643
 2004
 2005
 2006
 2007
 $ 4836 $ 140
 capacity purchases totaled $ 691 million $ million $ 740 million 2002 2001 2000.
 2001 three facilities seven-term power contracts non.
 after-tax charge $ 136 million.
 cash payments totaled $ 207 million.
 allocation pur- chase price assets liabilities acquired values.
 value power contracts operation maintenance.
 fuel purchase electric generation natural gas.
 estimated payments five years 2003 599 million 2004 311 million 2005 253 million 2006 205 2007 89 million 215 mil lion.
purchase commitments regulated operations.
 dominion recovers costs rates.
 natural gas services.
 volumes gas market index prices.
 normal purchases sales under sfas.
 133.
 long-term commitments purchase.
 estimated payments five years 2003 34 million 2004 23 million 2005 13 million.
 no commitments.
 transportation agreements minimum commitments 2003 23 2004 57 million 2005 56 million 2006 53 million 2007 44 million 2007 68 million.
 leases facilities vehicles aircraft equip capital leases.
 future minimum lease payments 2003 94 2004 2005 82 million 2006 67 million 2007 62 million 79 million.
 rental expense $ 84 million $ 75 million $ 107 million 2002 2001 2000.
december 31 2002 dominion agreements with lessors finance lease power generation projects corporate headquarters air- craft.
 lessors financing $ 2. 2 billion $ 1. 6 billion for project costs.
 dominion construction agent responsible for construction by specified date.
 project terminated before completion purchase for 100 percent costs or terminate payment to lessor 89. 9 percent costs.
 completion dominion assets subject operating lease.
 lease payments sufficient return to investors.
 may renew lease costs market conditions purchase at original construction cost sell to third party.
 if sold insufficient payment 81 percent to 85 percent project cost


maintain fhlb stock investment equal. 2%. bank assets $ 25 million.
 stock investment equal 4. 5%. advances.
 fhlb evaluates excess stock redemption.
 investment fhlb stock $ 140. 2 million $ 164. 4 million december 2011 2010.
 maintain qualified collateral percent advances varies adjusted annual collateral audit creditworthiness.
 advances secured by mortgage loans-backed securities.
 pledged loans $ 5. billion $. 6 billion one- four-family home equity loans collateral.
 2009 paid down advance maturity $ 1. 6 billion fhlb advances.
 loss on early extinguishment advances $ 50. million.
 loss extinguishment debt.
 similar transactions 2011 2010.
 raised capital trusts.
 securities redeemed due date 30 years after issuance.
trust issued floating rate preferred securities liquidation $ 1000 per capital security.
 used proceeds purchase floating rate junior subordinated debentures issued etbh guarantees trust obligations contributed proceeds e*trade bank capital contribution.
 recent issuance 2007.
 face values trusts at december 31 2011 shown dollars thousands trusts face value maturity date annual interest rate.
 etbh capital trust ii $ 5000 2031 10. 25%. %
 3. 75%. 6-month libor
 trust 2032 3. 25%-3. 65%. % 3-month
. 30%.
 2. 45%-2. 90%. 3-month
. 20%-2. 40%.
 2. 10%. 3-month
 capital trust. 90%-2.%.
$ 433000
 31 2011 2010 borrowings $ 2. 3 million $ 19. 3 million collateral market.
 $ 0. 5 million overnight short-term federal reserve bank tax programs.
 pledged $. 8 million securities.


increased tax position temporary differences.
 2014 change tax accounting method 2008 repair utility plant.
 changes unrecognized tax benefits.
 positions december 31 2014 2013 unrecognized tax benefit $ 9444 $ 7439 effective tax rate.
 table changes valuation allowance.
 balance january 1 2012 $ 21579
 increases positions
 decreases
 31 $ 19520
 increases
 december 31 2013 $ 13555
 increases
 decreases -3176
 $ 10379
 discrete tax benefit $ 2979 entity re-organization market operations state net operating loss carryforwards valuation allowance.
 maintains noncontributory defined benefit pension plans.
 based years service.
 plans closed employees.
 hired 2006.
 2001 accrued benefit frozen sum upon termination retirement.
employees 2001 non-union 2006 5. 25%. base pay contribution plan.
 multiemployer plan.
 pension minimum employee retirement income act 1974 normal cost.
 additional contributions restrictions pension protection act 2006.
 increased contributions financial requirements.
 assets invested funds equity bond funds fixed income securities guaranteed interest contracts real estate funds trusts.
 pension expense deferred subsidiaries recovery utility services.
 unfunded noncontributory pension plans additional retirement benefits.


pnc financial services group.
 2013 form 10-k 65 liquidity capital management risk two components.
 first potential loss funding requirements.
 inability operate businesses contingent liquidity.
 manage liquidity risk consolidated company level cost-effective funding obligations contingent liquidity.
 monitors liquidity early warning indicators liquidity stress.
 performs liquidity stress tests maintains contingency funding plan.
 severe liquidity stress simulation liquidity position pressure market.
 restricted access funding accelerated run-off deposits valuation pressure heavy demand obligations.
 parent company liquidity guidelines sufficient liquidity obligations.
 liquidity-related risk limits enterprise liquidity management policy.
 review compliance limits.
 monitor liquidity liquidity coverage ratio supervision regulation section item 1.
pnc bank calculate lcr daily december 31 2018 exceeded requirement 100%.
 information regulatory liquidity requirements item.
 largest source customer deposit base banking.
 stable low-cost funding.
 deposits increased to $ 267. 8 billion december 31 2018 from $ 265. 1 billion 2017 growth interest-bearing deposits noninterest-bearing deposits.
 funding sources balance sheet additional information.
 assets unused borrowing capacity liquidity.
 assets short-term investments-earning deposits $ 22. 1 billion securities sale $ 63. 4 billion.
 liquid assets fluctuates.
 assets $ 2. 7 billion securities trading securities pledged collateral.
 $ 4. 9 billion securities maturity pledged collateral.
 liquidity funding long-term debt short-term borrowings.
note 10 borrowed funds funding sources balance sheet borrowings.
 senior subordinated debt decreased 24 debt.
 billions 2018
 january 1 33.
 issuances.
.
.
 31 $ 30.


entergy louisiana financial analysis 2007 2006 net revenue operating fuel expenses gas power expenses regulatory charges.
 analysis change net revenue 2007 2006.
.
 2006 net revenue $ 942.
 base revenues.
 volume/weather.
 transmission revenue.
 purchased power capacity.
.
 2007 net revenue $ 991.
 base revenues due increases 2006 2005 formula rate plan deferred capacity costs.
.
 volume/weather variance increased electricity usage unbilled service period.
 usage increased gwh sectors 2006.
 accounting estimates.
 transmission revenue variance higher rates.
 purchased power capacity higher charges amortization 2006.
 purchased power capacity costs offset base revenues rate increase.
 local rate regulation.
operating revenues fuel power expenses regulatory charges $ 143. 1 million fuel cost recovery higher rates $ 78. 4 million base $ 37. 5 million volume/weather.
 power expenses net area demand deferred fuel expense higher rates.
 regulatory credits decreased deferral capacity charges 2006 amortization 2007 2006 formula rate plan.
 note 2 statements plan storm cost recovery.


selling costs increased $ 25. million to $ 94. 6 million 2010 from 69. million 2009.
 due higher personnel expansion distribution performance incentive plan.
 costs increased 8. 9%. 2010 from. 1%. 2009.
 product innovation supply chain costs increased $ 25. million to $ 96. million 2010 71. million 2009 apparel distribution facilities.
 expenses performance incentive plan.
. 1%. 2010.
 corporate services costs increased $ 24. million to $ 98. 6 million 2010 74. million 2009.
 higher facility costs information technology initiatives personnel costs increased expenses performance incentive plan.
 increased. 3%. 2010 from. 7%. 2009.
 income operations increased $ 27. 1 million. $ 112. 4 million 2010 from 85. 3 million 2009.
. 6%. 2010. 2009.
.
expense unchanged $ 2. 3 million.
 increased. 7 million $ 1. 2 million 2010. million 2009.
 due higher net losses foreign currency exchange rate changes euro canadian dollar derivative financial instruments.
 income taxes increased 4. 8 million to $ 40. 4 million 2010. 6 million 2009.
 effective tax rate 37. 1%. 2% due tax planning federal state tax credits offset valuation allowance foreign operating loss.
 revenues region.
.
 countries.
.
 revenues north american segment increased $ 385. 5 million to $ 1383. 3 million 2011. 8 million 2010 due.
 revenues foreign countries increased $ 23. 2 million to $ 89. 3 million 2011.1 million 2010 footwear unit sales growth latin american.


.
 december 31 2014 owned leased 129 manufacturing sites 15 technical centers 33 countries.
 site plants wholly partially owned leased.
 smaller manufacturing sites sales offices warehouses engineering centers joint ventures investments.
 table regional distribution manufacturing sites segment north america middle east africa asia pacific south america.
 electrical architecture
 powertrain systems
 electronics safety
 thermal systems
 15 technical centers north america europe middle east africa four asia pacific one south america.
 129 83 primarily owned 61 primarily leased.
 real estate portfolio strategies 2019 global plans operating expenses.
 evolving portfolio future needs.
.
subject to actions claims suits investigations proceedings including defects breach contracts competition antitrust product warranties intellectual property personal injury employment.
 financial position results operations cash flows.
 warranty matters future costs reserves cover warranty settlements.
 final amounts could differ from estimates.
 ignition switch recall recall.
 delphi received requests information cooperating government agencies.
 co-defendant gm in product liability class action lawsuits.
 class action cases transferred to district court southern new york.
 two class action complaints filed october 14 2014.
 delphi not named defendant.
 believes allegations without merit intends to defend.
 no assurances outcome loss probable no reserve made as december 31 2014.
creditors litigation fourth delphi automotive llp distributions exceed $ 7. 2 billion delphi pay claims delphi $ 32. 50 $ 67. 50 $ 7. 2 billion maximum $ 300 million.
 2014 complaint filed bankruptcy redemption delphi interests gm pbgc repurchase shares dividends distributions $ 7. 2 billion.
 delphi distributions below $ 7. 2 billion threshold contest allegations.
 no accrual recorded december 31 2014.


matters twelve months impact operations financial position.
 foreign jurisdictions statutes limitations 3 to 5 years.
 examination tax australia canada france germany italy japan puerto rico singapore switzerland united kingdom.
 tax returns under examination foreign jurisdictions.
 significant united kingdom.
 audits twelve months resolution impact.
.
 authorized issue 250 million shares preferred stock none issued outstanding december 31 2008.
 numerator basic diluted earnings per share net earnings.
 denominator basic earnings weighted average shares outstanding.
 diluted weighted average shares adjusted dilutive stock options equity awards.
 reconciliation weighted average shares diluted years ending december 31.
 weighted average shares net earnings per share.
 dilutive stock options equity awards..
 shares diluted net earnings 228. 237. 245.
 227. 235. 5 243. dilutive stock options equity awards. diluted earnings 228. 237. 5 245. 2008 11. 2 million options not greater market price.
 2007 2006 3. 1 million. 6 million options not.
 2008 repurchased. 8 million shares common stock $ 68. 72 per share cash outlay $ 737. million.
 2008 board authorized $ 1. 25 billion share repurchase program expires december 31 2009.
 $. 13 billion.
.
 design develop manufacture market orthopaedic dental reconstructive implants spinal implants trauma products.
 healthcare services.
 revenue less than 1 percent net sales.
 operations segments united states pacific.
structure reportable segment information.
 management evaluates performance profit global operations corporate expenses share compensation settlement claims acquisition integration inventory step-up research development write-offs intangible asset amortization.
 global operations research development engineering medical education brand management legal finance human resource.
 manufacturing operations logistics.
 intercompany transactions eliminated profit.
 management reviews accounts receivable inventory property plant equipment goodwill intangible assets. manufacturing logistics corporate assets.
.
 consolidated financial statements


republic services.
 financial statements 2014 quality institutions.
 balances fdic insured limits.
 monitor credit worthiness financial institutions deposits.
 credit risk accounts limited variety customers markets dispersion operations.
 commercial industrial municipal residential united states puerto rico.
 credit evaluations require collateral.
 allowance doubtful accounts credit risk historical trends economic conditions.
 exceeded 5% receivable balance december 31 2012 2011.
 collection transfer recycling disposal services.
 recorded billed claims settled cash.
 estimated realizable value.
 provisions evaluated historical collection experience age information economic conditions.
 review balances.
 reserves for accounts ninety days old.
 past due receivable balances written-off collection unsuccessful activity allowance doubtful accounts december 31 2012 2011 2010.

 balance year $ 48. $ 50. 9 $ 55. 2
 29. 7 21. 23. 6
 accounts written-off -32. 5 32. 8 23. 9 27.
 end year $ 45. 3 $ 48. $ 50. 9
 december 31 2012 $ 164. 2 million.
 funds tax-exempt bonds expenditures landfills transfer stations collection recycling centers.
 deposited trust accounts.
 restricted restricted cash securities balance sheets.
 financial assurance agencies collection contracts landfills environmental remediation permits business licenses.
 cash restricted trust funds escrow.


jpmorgan chase co. annual report trading assets liabilities debt equity instruments loans physical commodities inventories lower cost fair value.
 liabilities debt equity instruments sold positions.
 obligated purchase future short positions.
 receivables unrealized gains payables losses derivatives.
 fair value consolidated balance sheets.
 reduction securities owned securities sold not purchased short identical.
 2013average balances.
 december 31 millions 2010 2009 2008
 2013 debt equity instruments 354441 318063
 derivative receivables 84676 110457 121417
 liabilities 2013 debt equity instruments 78159 60224 78841
 derivative payables 65714 77901 93200
 reduction securities owned securities sold not purchased short positions.
represent securities sold not purchased.
 2013 fair value option alternative measurement financial assets liabilities unrecognized firm commitments loan com mitments not fair value.
 mitigate income volatility instruments eliminate complexities accounting models. reflect instruments managed.
 include loans purchased securitization activity bifurcation accounting aged fair value.
 securities financing arrangements embedded deriva tive maturity greater one year.
 owned beneficial interests securitized assets embedded credit derivatives.
 tax credits equity investments washington mutual transaction.
 structured notes client-driven activities.
. long-term beneficial interests consolidated securitization trusts assets carried fair value.


2013. subsidiary agreed trustees.
 contribute $ 11 million per year pension plan three years.
 trustees.
 advance winding-up deficit.
 estimated deficit a3240 million $ 360 million.
 trustees accepted contributions not requested deficit.
 purchase obligations agreements goods services enforceable binding terms timing.
 related information technology services.
 $ 12 million unfunded commitments investment limited partnership.
 $ 218 million liabilities tax positions.
 2015 net assets $ 6. 2 billion decrease from. 2014.
 due to share repurchases $ 1. 6 billion dividends $ 323 million loss $ 289 million post- retirement benefit obligation offset net income $ 1. 4 billion.
 working capital increased $ 77 million from 809 million to $ 886 million.
loss increased $ 289 million 31 2015 2014 driven by 2022 negative foreign currency translation adjustments $ 436 million strengthening.
 dollar decrease $ 155 million post-retirement benefit obligations financial instrument losses $ 8 million.
 2022 risk solutions advisor insurance reinsurance broker.
 partners benefits talent financial challenges performance human capital retirement investment management health care compensation talent management strategies.
.
 years ended december 31 2015 2014 2013
 revenue $ 7426 $ 7834 7789
 income 1506
 operating margin. 3%.
 demand property casualty insurance rises economic activity increases falls decreases commissions fees.
 exposure


consolidated financial statements.
 global cruise company.
 own royal caribbean international celebrity cruises pullmantur azamara club cruises cdf croisi e8res de france 50% tui cruises.
 brands operate 41 ships december 31 2012.
 worldwide itineraries 455 destinations seven continents.
 consolidated financial statements accounting principles united states america.
 estimates.
 results differ.
 intercompany accounts transactions eliminated consolidation.
 entities control direct ownership 50% variable interest entities.
 6.
.
 investment accounted equity method.
 consolidate results pullmantur cdf croisi e8res de france two-month lag.
 no events transactions pullmantur cdf croisi e8res france disclosure adjustment pullmantur assets 3.
 goodwill 4.
 intangible assets 5.
 property equipment.
 income taxes.
 note 2.
 accounting policies revenues expenses deposits cruises customer deposit liabilities.
 ticket revenues goods services costs ten days less.
 port costs guest head counts.
 revenues $ 459. 8 million $ 442. 9 million $ 398. 0 million 2012 2011 2010.
 cash equivalents market securities maturities less 90 days.
 inventories provisions supplies fuel cost.
 property equipment cost less depreciation amortization.
 interest acquiring assets.
 improvement costs capitalized depreciated.
 depreciation components written off losses recognized operating expenses.
 damages late delivery reductions cost.
 depreciation property equipment computed useful life.
 30 years 15% projected residual value.
30-year life ships 15% residual value based-average components.
 depreciation capital leases computed shorter lease term asset life.
.
 property equipment.
 30
 improvements 3-20
 buildings improvements 10-40
 computer hardware software 3-5
 transportation equipment 3-30
 leasehold improvements lease term
 hardware equipment improvements.


collateral distribution interest clearing firms trading volumes reduction restricted cash clearing increase 2016 higher clearing transaction fees market data revenue.
 increases cash 2015 2017 sale bm&fbovespa shares declines purchases property equipment.
 increase 2017 sale remaining bolsa mexicana valores.
.
.
 increases cash 2015 2017 higher cash dividends 2017 2016.
 increase 2016 offset proceeds finance lease obligation sale leaseback datacenter first quarter 2016.
 table summarizes debt outstanding december 31.
 millions 2022.
 2025.
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. august 2012 interest rate swap agreement obligation fixed 3 32% 32 %
 december 2014 3. 11% 11 %
 august 2012 4. 73% 73 %
 $. billion multi-currency revolving credit facility matures november 2022
 proceeds corporate purposes liquidity.
 option increase $ 3. billion
 facility pre-payable without premium penalty.
consolidated net worth test shareholders 2019 equity september 30 2017 share repurchases special dividends greater $ 2. 0 billion multiplied. 65.
 borrowings outstanding.
 maintain 364-day multi-currency revolving secured credit facility domestic international banks.
 borrowings up $ 7. 0 billion.
 temporary liquidity clearing firm default liquidity constraint default disruption domestic payments.
 guaranty fund contributions


december 31 2012 reserves a&e losses $ 138449 thousand $ 90637 thousand additional reinsurance $ 36667 thousand direct excess insurance.
 $ 177068 thousand ibnr reserves.
 asbestos loss reserves $ 422849 thousand 95. 5%. a&e reserves $ 339654 thousand assumed business $ 83195 thousand direct business.
 future policy benefit reserve.
 activity summarized.
 2012 2011 2010
 balance beginning year $ 67187 $ 63002 $ 64536
 liabilities assumed
 adjustments reserves 8449
 benefits paid -4650
 end year $ 66107 $ 67187 $ 63002
.
 fixed maturity equity securities managed third party investment asset managers.
 prices pricing services.
 market data.
.
use model processes option adjusted spread model develop prepayment interest rate scenarios for securities.
 limited price quotes obtained from investment brokers.
 asset managers to prices.
 prices request verification.
 company performs reviews price tests prices independent pricing.
 no variances noted.
 company use assumptions future cash flows risk-adjusted discount rates determine fair value.
 no adjustments at december 31 2012 2011.
 manages small public equity portfolio fair value at 2012 $ 117602 thousand prices obtained from published sources.
 equity securities in.
 categorized level 1.
 securities traded on foreign exchanges categorized level 2 to foreign exchange adjustments.
 fixed maturity securities categorized level 2 valuation models.
 valuations significant inputs unobservable categorized as level