years december 31 2007 2006 2005 $. 5 million $. 8 million $ 1. 4 million depreciation amortization capital leases included.
 company promote brand products.
 sponsorship agreements athletes collegiate professional supplier agreements athletic event sponsorships.
 schedule future minimum payments december 31 2007.
 2008 14684
 2009 14660
 2010 13110
 2011 10125
 2012
 future sponsorship marketing payments $ 53584
 minimum obligations sponsorship marketing agreements.
 incentives performance achievements supply obligations.
 involved legal matters.
 financial position operations cash flows.
 executives agreements severance benefits termination change ownership.
.
 november 2005 initial public offering issued additional 9. 5 million shares common stock.
.2 million shares convertible stock rosewood converted.
 received proceeds $ 112. 7 million $ 10. 8 million stock issue costs $ 25. million term note revolving credit $ 12. 2 million preferred stock $ 12. million.
 recapitalization approved charter issuance 100. million shares a common 16. 2 million b convertible value $ 0. 0003 1/3 per share amendments unissued shares.
 1. million shares b converted a.


company granted 1020 performance shares.
 vesting goals.
 2010 dividends accrued common units paid.
 table activity 2010 date.
 december 31 2009 116677
 granted 275
 vested 257
 cancelled
 31 2010 196462
 total value stock 2008 $ 10. 3 million $ 6. 2 million $ 2. 5 million.
 employees acquire shares common stock after-tax payroll deductions offering periods.
 shares purchased 90% closing price.
 compensation expense recognized.
 2010 2009 2008 4371 4402 5600 shares issued employees.
 six-month holding.
 annual expense $ 0. 1 million purchase discount recognized.
 non-executive directors annual award common stock equal $ 75000.
-executive directors receive cash stipend $ 25000 shares closing price.
 7470 11674 5509 shares common stock issued 2010 2008.
 vesting restrictions.
 expense $ 2. 4 million. stock recognized years 2010 2009 2008.


fair values current assets liabilities approximate reported carrying amounts.
 noncurrent assets liabilities derivatives shown.
 millions 2004 carrying amount
 notes long-term assets $ 1702 $ 1770
 long-term debt liabilities $ $ 875 $ 1373 $ 1487
 derivative instruments $ 2014
 value notes receivables future cash flows-adjusted rates.
 long-term debt liabilities market prices future payments.
 january 2 2004 interest rate swap agreement receive floating pay fixed rate.
 note receivable floating rate.
 aggregate amount swap $ 92 mil- lion matures 2010.
 fair value hedge change fair value recognized interest income.
 approximately $ 3 million at december 31 2004 january 2  2004.
hedge effective no net gain loss reported earnings december 31 january 2  2004.
 six interest rate swap agreements risk residual.
 required by excess spread note pools.
 swaps $ 535 million expire through 2022.
 not hedges.
. net asset $ 3 million december 31 2004 $ 1 million january 2 2004 liability $ 2 million january 3  2003.
 recorded $ 2 million net gain $ 3 million net gain $ 21 million net loss.
 expenses offset by income value note sale gains.
 interest rate swaps risk timeshare note sales.
 not.
.
 terminated sale gain $ 2 million loss $ 4 million january 2 2004.
 offset by note sale gains losses.
 entered foreign exchange contracts foreign currency exposure.
 aggregate dollar contracts $ 36 million december 31 2004.
 not hedges.
.
 fair value zero december 31 january 2 2004.
 $ 3 million $ 2 million net loss.
 net losses offset translating assets.
 dollars.
 2004 2003 entered foreign exchange contracts hedge volatility earnings.
 $ 36 million 2004.
 less than year cash flow hedges.
 changes fair values recorded income.
 fair value contracts zero $ 1 million december 31 2004 january 2 2004.
 deriva hedged item.
 cash flow hedge accounting discontinued ineffective contracts loss $ 1 million reported earnings 2004.
 remaining hedges effective no net gain loss.
 no deferred gains losses 12 months.
 lenders hotel owners long-term management contracts.
guarantees maximum term five years or.
 lenders fund cash hotel inadequate debt repay loan end term.
 hotel owners hotels profit.
 marriott international  inc.


performance graph comcast compares yearly shareholder return comcast 2019s common stock five years 31 2015 returns standard poor 2019s 500 stock index peer group cable communications media industries.
 cablevision systems dish network directv.
. time warner cable.
. viacom.
 twenty-first century fox.
 cbs.
 cable subgroup 63% media subgroup 37% communications segments.
 $ 100 invested december 31 2010 common stock reinvestment dividends.
 5 year cumulative return comcast s&p 500 peer group index.
 comcast $ 110 $ 177 $ 250 $ 282
 s&p 500 stock index $ 102 $ 118
 peer group index $ 110 $ 157 $ 231 $ 267 $
wholly subsidiary no market equity securities.
 2015 report


income statement item 8.
 net income 2008 $ 882 million 2007 $ 1. 467 billion.
 revenue 2008 increased 7% 7 % 2007.
 positive operating leverage noninterest expense increased 3%.
 net interest income margin december 31.
 income $ 3823 $ 2915
 margin. 37%. 37 %.
 interest-earning assets yields interest-bearing liabilities rates noninterest sources funding.
.
 31% % increase net interest income 2008 impacted $ 16. 5 billion increase interest-earning assets decrease funding costs.
 margin declining rates deposits borrowings.
 higher interest-earning assets.
 net interest margin. 37%. 37 % 2008 3.%. 2007.
 decrease rate paid interest-bearing liabilities 140.
 123 points.
 offset 77 point decrease yield interest-earning assets.
yield loans decreased 109 points.
 2022 noninterest decreased 26 lower interest rates.
 2008 average federal funds rate 1. 94%. 03%. 2007.
 2009 interest income pricing alignment.
 margin.
 noninterest income $ 3. 367 billion 2008 $ 3. 790 billion 2007.
 gains $ 246 million adjustment blackrock losses mortgage loans $ 197 million $ 179 million income hilliard lyons $ 164 million million securities losses $ 206 million gain $ 95 million redemption visa shares $ 61 million reversal legal contingency reserve trading losses $ 55 million $ 35 million impairment mortgage rights equity management losses $ 24 million.
income 2007 $ 82 million transfer blackrock shares $ 209 million loss hilliard lyons $ 227 million trading $ 104 million equity management gains $ 102 million mortgage loans $ 3 million.
 income increased 16 million.
 fund servicing fees increased 69 million $ 904 million.
 acquisition albridge solutions.
 global investment servicing.
 accounting $ 839 billion custody $ 379 billion


access capital markets cash requirements financial capacity liabilities.
 cash flows millions 2014 2013.
 operating activities $ 7385 $ 6823 $ 6161
 investing -4249 -3405 -3633 3633
 financing -2982 2982 -3049 -2682
 change cash $ 154 $ 369
 income 2014 increased higher tax payments.
 taxes deferred bonus depreciation.
.
 payments past wages national labor negotiations reduced cash.
 lower tax benefits bonus depreciation increases.
 federal tax law 100% bonus depreciation 2011 50% 50 % depreciation 2012-2013.
 deferred 2011-2013 income tax expense positive cash flow.
 extended 50% bonus depreciation 2014 income tax payments.
 investments buyout long-term lease headquarters $ 261 million increase cash.
investments locomotives freight cars containers facility projects.
 investments 2014 $ 99 million early buyout locomotives freight cars economic conditions.
 lower investments 2013 decrease cash 2012.
 2012 $ 75 million buyout 165 locomotives economic.


maintain corporate commercial paper program unrelated 2019 $ 3 billion maturities 270 days from.
 december 31 2009 $ 2. 78 billion paper $ 2. 59 billion 2008.
 note 8.
 participation fdic 2019s temporary liquidity guarantee program parent company issue $ 1. 67 billion unsecured senior debt 2009 backed full faith credit united states.
 december 31 outstanding debt $ 1. 5 billion.
 note 9.
 guarantee expires april 30 , 2012.
 state street bank issue $ 5 billion $ 1 billion subordinated notes.
 participation tlgp issue $ 2. 48 billion unsecured senior notes backed full faith credit.
 outstanding unsecured notes totaled $ 2. 45 billion.
 note 9.
guarantee state street bank debt expires maturity$ 1 billion march 2011 $ 1. 45 billion september 15 2011.
 line credit $ 800 million canadian securities operations.
 termination cancelable notice.
 no balance.
 obligations.
 payments 1 1-3 years 4-5 years 5 years
 long-term debt $ 10981 $ 529 $ 4561 $ 797
 leases
 capital lease obligations
 cash obligations $ 13165 $ 832 1182
 excludes capital lease obligations interest- rate swaps.
 interest payments calculated stated rate exception floating-rate debt indexed rate december 31.
 obligations recorded consolidated statement condition december 31 2009 interest long-term debt.
table include obligations settled cash less than one year deposits federal funds securities short-term borrowings.
 information deposits in notes 7 8 8.
 table include obligations derivative instruments amounts represent amounts paid settlement.
 information derivative contracts note 16.
 obligations under pension post benefit plans described in note 18 not included table.


berths 2011.
 10 ships 34000 berths north american cruise market 2012 2016.
 cruising smaller growing sector vacation industry.
 annual growth rate guests 9. 6%. 2007 2011 growth poten.
 europe served 104 ships 100000 berths 2007 121 ships 155000 berths 2011.
 10 ships 28000 berths expected european cruise market 2012 2016.
 table growth global north american european cruise markets guests estimated weighted-average berths five years global cruise guests north american cruise guests european cruise guests.
 global northamericancruiseguests europeancruiseguests
 2007 16586000 327000
 2008 17184000 347000
2009 17340000 363000 10198000 222000 5000000 131000
 2010 18800000 391000 10781000 232000 5540000 143000
 2011 20227000 412000 11625000 245000 5894000 149000
 estimates global cruise guests weighted-average supply berths north america seatrade insider cruise line international association.
 estimates statistical analysis.
 cruise line international association guests two nights 2007 2010.
 estimates.
 european cruise council 2007 2010.
.
 asia/pacific region higher growth small sector.
 compete cruise lines competitors carnival corporation plc aida carnival costa cunard line holland america iberocruceros p&o princess disney msc oceania.
 compete hotels sightseeing destinations.
 demand political economic conditions.
 consumer spending.
operating strategies protect environment serve global guest base grow business enhance revenues expand diversify guest mix sourcing ensure cash liquidity maximizing return capital shareholder value brands revitalization ships transfer innovations fleet new cruise ships markets itineraries optimize returns focus markets operations initiatives industry distribution channel consumer outreach.


management 2019s jpmorgan chase. hold 2. 5%. tier 1 common.
 basel iii establishes 6. 5%. tier i common equity standard act.
 effective first quarter 2015.
 chart presents basel iii minimum risk-based capital ratios transitional phased-in.
 target tier 1 common ratio.
 1 ratio regulatory minimums transition full implementation.
 estimates tier 1 common ratio phased-in 9. 5%. december 31 2013.
 tier 1 common ratio basel iii estimated 9. 4%.
 tier 1 common ratio basel i iii non-gaap measures.
 bank regulators investors analysts assess capital position financial companies.
 table comparison tier 1 common basel rules risk-weighted assets.
differences in calculation rwa basel i iii iii risk-sensitive approaches models i fixed supervisory risk weightings asset class basel iii includes operational risk i.
 losses incorporates losses.
 firm 2019s operational risk capital model iii.
 enhancements risk capital increased 2013 2012.
 tier 1 common basel iii includes adjustments deductions accumulated income afs securities defined benefit pension postretirement employee benefit plans.
 december 31 2013.
 tier 1 common $ 148887
 adjustments afs securities defined benefit pension 1474
 deductions 1780
 deduction deferred tax asset net operating loss foreign tax credit carryforwards
 adjustments
 tier 1 common $ 151202
 risk-weighted assets under basel iii $ 1590873
tier 1 ratio basel iii. 5%.
 risk-weighted assets $ 1590873 1 ratio iii. 5%. exposures deducted capital risked-weighted iii.


notional amounts interest rate caps december 31 2004 contractual maturity dates percentages.
 2005 2006 amount $ 350000
 6.
 december 31 2005 variable rate debt new american tower spectrasite credit facilities $ 1493. million refinanced october 27 2005 october 27 2010 maturity dates.
 fixed rate debt 2. 25%. convertible notes. 7. 125%. % $ 500. balance $ 501. 9 million 5. 0%. $ 275. 3. 25%. $ 152. 7. 50%. 25%. $ 400. 12 25%. $ 227. balance 2005 $ 160. 3 million allocated fair value warrants $ 7. 2 million 3.%. $ 345. balance $ 344. 4 million other debt $ 60. 4 million.
credit facilities payable london interbank agreement accrues base.
 average interest rate december 31 2005 4. 71% 4. 71 %.
 interest 5. 03% 5. 03 %.
 2004 variable rate debt $ 698. million fixed rate 2. 25%. 25 %. 7. 125%. % $ 500. balance $ 501. 9 million 5. 0%. $ 275. 7 3. 25%. 25 % $ 210. 7. 50%. % $ 225. 7. 25%. 25 % $ 400. 12. 25%. 25 % $ 498. 3 million balance $ 303. million warrants $ 21. 6 million $ 274. 9 million 3.%. $ 345. balance $ 344. 3 million other debt $ 60. 0 million.
 interest facility payable london interbank quarterly accrues libor base rate.
average interest rate december 31 2004 4. 35%. 35 %.
 year 2004 3. 81% (. 81 % ).
 $ 175000 february 2006.
 $ 25000 september 2007.
 $ 250000 $ 100000 june july 2006.
 weighted-average.
 $ 75000 $ 75000 $ 150000 december 2009.
 $ 100000 $ 50000 october 2010.
 50000.
 $ 50000 october 2010.
 foreign operations rental mexico brazil.
 remeasurement gain december 2005 $ 396000 losses 2004 2003 $ 146000 $ 1142000.
 changes interest rates variable rate debt $ 1493. million december 31  2005.
 10% increase 47 points interest rates additional pre-tax charge net loss cash outflows $ 7. million.
.
.
.


2013 earnings per share average millions.
 2011 2010
 average common shares basic computations 323. 335. 364.
 dilutive effect stock options restricted stockunits 4. 4.
 diluted 328. 339. 368.
 basic diluted earnings net earnings weighted average shares.
 earnings includes effects stock options vesting restricted stock units.
 excluded 8. million 13. 4 million 14. 7 million stock options 31 2012 2011 2010 anti-dilutive prices average market price stock.
 2013 business segments products services.
 31 five business segments aeronautics information systems missiles fire control mission systems training space systems.
 reorganization electronic systems alignment.
 management layers electronic systems global training logistics eliminated gtl business split new segments.
operating results sandia corporation national laboratories.
 equity interest.
 atomic weapons establishment joint venture transferred electronic systems space systems.
 reorganization annual report.
 2030 aeronautics 2013 research design development manufacture military aircraft unmanned vehicles.
 information systems solutions management services technology solutions civil defense intelligence government customers.
 missiles fire control defense systems tactical missiles-to-ground systems fire control systems operations logistics services unmanned ground vehicles.
 mission systems training combat systems missile defense systems radar mission systems sensors simulation training services unmanned technologies platforms integration training.
 space systems 2013 research design production satellites missile systems space transportation systems.
 national security systems.
 equity interests united launch alliance launch services.
government united space alliance space shuttle mission 2011 joint venture. atomic weapons program.


duke realty corporation report 2009 table summarizes transactions rsus excluding average restricted stock units.
 december 31 2008 401375 $ 29.
 granted 1583616 $ 9.
 vested $ 28. 39
 forfeited $ 12.
 december 31 2009 1683606 $ 12.
 compensation cost $ 7. 3 million $ 4. 9 million $ 3. million 2009 2008 2007.
 $ 6. million unrecognized compensation expense nonvested rsus 3. years.
 capital market risk.
 hedging arrangements.
.
 2007 interest swaps hedge $ 300. million debt offerings.
 cash hedges.
 2008 settled cash payment $ 14. 6 million.
 effectiveness test effective cash flow hedge.
paid settlement $ 700000 reclassified interest expense partial ineffectiveness.
 net $ 13. 9 million recognized interest expense hedged debt may 2008.
 remaining unamortized $ 9. 3 million.
 august 2005 $ 300. million cash flow hedges swaps $. million debt.
 swaps hedge accounting.
 september 2007 issuance $ 300. million unsecured notes terminated hedges.
 settlement $ 10. 7 million recognized earnings interest expense.
 unamortized $ 8. 2 million.
 ineffective portion hedge insignificant.
 effectiveness evaluated hypothetical derivative method.
 no derivatives december 31 2009.


intellectual property company capitalizes costs incurred excluding personnel patenting technology.
 capitalized costs majority legal costs reflect awarded pending.
 amortizes cost patents over seven years.
 if maintenance fees records expense net capitalized amount.
 capitalize maintenance fees.
 net loss per share computed by dividing by common shares.
 diluted net loss dilutive shares.
 shares reflect dilutive effect of potential common stock options warrants.
 no potential common stock dilutive in loss reported years 31 2001 2002 2003 antidilutive.
 calculation diluted shares excludes options to purchase common stock.
 potential dilutive shares from options.
 2003
 calculation diluted excludes unissued shares common stock stock options prices greater than average market price stock.
fiscal years 2001 2002 2003 potential shares totaled 61661 341495 2463715 shares.
 excludes warrants purchase 400000 shares common stock acquisition intellectual property.
 cash equivalents marketable security maturity 90 days or less cash equivalent.
 marketable securities maturity greater than 90 days one year long-term investments.
.
 debt equity securities hold maturity amortized cost held-to-maturity securities.
 amortized cost market value marketable securities approximately $ 25654000 $ 25661000 at march 2002 $ 9877000 $ 9858000 2003.
 short-term investments government securities.
 financial instruments cash cash equivalents marketable securities accounts receivable accounts payable approximated fair market value.
 comprehensive income.
 loss.
 change equity transactions non-owner sources.
 net loss no components income loss disclosure years 2001 2002 2003.
 financial statements


company 2019s stock performance graph compares return common stock nasdaq stock market-united states biotechnology index.
 $ 100 invested july 31 2001 2019s common stock nasdaq biotechnology index reinvestment dividends.
 comparison 65 month return alexion. nasdaq composite index biotechnology index.
.
 alexion pharmaceuticals. 108. 102. 167. 130. 260. 483.
 composite. 128. 142. 164. 168. 187. 204.
 biotechnology. 149. 146. 176. 186. 183. 187.


land sales from undeveloped land.
 high concentration development plans.
 increase to land sale tenant future expansion.
 recorded $ 424000 $ 560000 impairment charges 2004 2003.
 one parcel owned.
 anticipate selling first quarter 2005.
 86 buildings.
 69 industrial 12 office five retail.
 net income $ 1. 6 million $ 6. 3 million $ 10. 7 million 2004 2003 2002.
 41 properties sold 2004 42 2003 two 2002 one held-for-sale.
 gains on disposal $ 23. 9 million $ 11. 8 million 2004.
 $ 4. 5 million loss on disposal due to impairment charges $ 7. 7 million on three properties 2002 sold 2003 2004.
2003 to 2002 rental income increased $ 652. 8 million 2002 to $ 689. 3 million 2003.
 table reconciles rental income segment.
 office 419962 393810
 industrial
 retail
 $ 689343 652827
 three segments not affected economic industry conditions.
 retail segment high occupancies strong performance 2003 office industrial weaker economic environment.
 primary causes increase rental income in-service occupancy improved 87. 1%. to 89. 3%. 2003.
 increase industrial portfolio occupancy. 1%. slight increase office portfolio occupancy.
 lease termination fees $ 27. 4 million 2002 $ 16. 2 million 2003.
 decrease office segment $ 21. 1 million fees 2002 11. 8 million 2003.
 fees tenants.
high termination fees 2002 office.
 decrease 2003 improving economy stable financial position.
 acquired $ 232 million 2. 1 million square feet.
 office buildings occupancy 90%.
 revenues $ 11. 9 million.
 2002 acquisitions $ 15. 8 million $ 4. 8 million.
 large office acquisition.
 developments revenues $ 6. 6 million $ 13. 7 million 4. 7 million proceeds properties $ 126. 1 million 2003 40. 9 million.
 $ 12. 5 million 2003 19. 6 million.
.
.
 decreased $ 27. 2 million 2002 $ 23. 7 million 2003.


interest income 2012 versus 2011.
 $ 3. 88 billion 25% lower 2011.
 due lower yields financial instruments collateralized agreements.
.
 $ 5. 19 billion 2011 6% lower 2010.
 due higher interest expense long borrowings higher dividend expense instruments offset higher yielding agreements.
 operating expenses influenced compensation headcount business activity.
 salaries discretionary compensation amortization equity awards.
 impacted revenues financial performance labor markets business mix share-based compensation programs external environment.
 difficult initiative 2011 reduce operating expenses.
 annual compensation non-compensation reductions $ 1. 9 billion.
 operating expenses staff.
 2012 2011 2010
 compensation benefits
. payrolltax
 brokerage clearing exchange fees
 development
communications technology 782 828
 depreciation amortization 1738 1865
 occupancy 875 1030
 fees 867 992 927
 insurance 529
 expenses 2435 2072
 non-compensation expenses 10419
 operating 22642 26269
 32400 33300 35700
.
.
.
 consultants temporary.


systems notes financial statements review goodwill impairment annually.
 completed annual impairment test second quarter 2013.
 step 1 assessment three reporting units media marketing publishing no impairment goodwill.
 risk.
 amortize intangible assets finite over estimated useful lives review impairment.
 monitor events long-lived assets.
 assess recoverability future cash flows.
 less than carrying amount recognize impairment loss excess carrying amount over value.
 intangible asset impairment charges 2013 2012 2011.
 assets amortized over estimated useful lives 1 to 14 years.
 amortization based economic benefits.
 weighted average useful lives assets.
 purchased technology
 customer contracts relationships
 trademarks
 acquired rights technology
 localization
 intangibles
development costs capitalization begins technological feasibility completion prototype no critical bugs release candidate.
 amortization begins software ready economic benefits.
 costs between availability material.
 internal software capitalize costs systems development stage.
 include costs payroll expenses employees.
 capitalization begins preliminary project stage ceases complete ready.
 asset liability method accounting.
 expense recognized taxes payable refundable current year.
 deferred tax assets liabilities recognized future tax consequences differences financial reporting tax operating losses tax credit carryforwards.
 valuation allowance reduce deferred tax assets realization.


2017 company obtained tax benefits dominican republic singapore.
 received permit operation expires 2021 national council free zones dominican republic.
 not subject tax.
 two tax incentives singapore economic development board.
 preferential 10% % tax rate headquarter income 0% tax rate manufacturing profits facility jurong island.
 2016 2015 legal entities incentives chinese government high industry.
 entitled preferential enterprise income tax rate 15% 15 %.
 benefit china tax incentive 2017.
 tax reduction 2017 $ 16. 9 million 2016 $ 6. 4 million.
 impact tax holiday 2015 similar 2016.
 reconciliation.
 tax rate effective income tax rate.
. 35
 time transition tax.
 state income taxes federal benefit.
 foreign operations.
 domestic manufacturing deduction.7 2. 7
 credit -1. 1 1.
 valuation allowance. 7. 7.
 audit settlements refunds. 1. 1 2. 2 7.
 excess stock benefits -2. 3 2. 3
 federal tax rate deferred taxes. 2 18. 2
 4. 5
 stock deduction. -3 0 3. 0
. 2.
 income tax rate 13. 7% 13. 7 % ) 24. 4% 24. 4 % 22. 8% 22. 8 % )
 deferred tax liability unremitted foreign earnings.
 imposes tax foreign earnings profits rates.
 provisional one-time transition tax $ 160. 1 million payment eight years.
 based foreign earnings profits assets liabilities future.
 subject change calculation.
additional income taxes undistributed foreign earnings not transition tax differences reinvested foreign operations.
 company provisional amount based on one-time transition tax subject to repatriation tax effect.
 federal state tax authorities issue guidance differ.
 provisional amount subject adjustment year 2017 tax act.
 permanent reinvestment undistributed earnings international affiliates policy changes taxes.
 estimates subject technical guidance evaluated measurement period.
 2015 deferred tax liabilities $ 25. 8 million on foreign earnings.
 decisions nalco merger acquisition.
 remaining foreign earnings repatriated 2016 deferred tax liabilities to zero december 31 2016.
 files.
 federal income tax returns.
.
 jurisdictions.
 subject to state foreign income tax examinations before 2014.
.
income tax returns ecolab 2014.
 company.
 2015 2016 under audit.
.
 ongoing audit activity.
 state foreign jurisdictions.
 anticipates changes uncertain tax positions closing audit years.
 material impact twelve months.
 decreases gross liability offsets balance accounts cash payments adjustments tax expense.
 change.


content part ii item 5.
 registrant's common equity stockholder matters issuer purchases stock traded new york stock exchange symbol 201chfc. september 2018 board approved $ 1 billion share repurchase program replaced programs open market privately transactions.
 timing market conditions corporate regulatory considerations.
 program discontinued.
 table repurchases fourth quarter 2018.
 average price paid dollar value.
 october 2018 1360987 $.
 november 2018.
 december 2018 912360 $. $ 787613605
 october december 2018
 quarter december 31 2018 102360 shares withheld executives employees share-based compensation agreements payroll income taxes restricted stock awards.
february 13 2019 97419 stockholders owners.
 dividend quarterly no assurance future dividends earnings capital financial condition.


2014.
 sales increased 9% volumes offset lower pricing.
 electronics sales increased 8% pricing.
 materials sales increased 10% volumes 11% offset lower pricing.
 higher volumes product lines regions.
 lower pricing unfavorable impacts.
 operating income $. increased 32% 32 % $ 104. higher lower operating costs $ 31 currency $ 5 offset.
 operating margin. increased improved loading leverage cost performance unfavorable pricing.
 2013.
 2012 sales decreased 3% lower volumes 4% pricing 1% offset 2%.
 electronics sales decreased 8%.
 performance materials sales increased 2% 2 % higher volumes 4% offset lower pricing.
 increase automobile.
 housing markets construction marine.
 lower pricing unfavorable mix impacts.
 operating income $ 321.decreased 25% $ 104. operating margin. decreased 400 gain equity nanomaterials $ 85.
 operating income $ 321. decreased 5% $ 18. unfavorable price mix impacts lower volumes 9 higher operating costs $ 6 currency $.
 margin decreased 30 lower volumes unfavorable price mix.
.
 sales $ 450. 451.
 income 88.
.
 sales $ 450. flat natural gas offset air separation.
 operating income $ 88. increased.
 sales backlog 2014 $ 520 $ 402 2013.
 new lng orders.
 $ 320 backlog completed 2015.
.
 sales $ 451. higher lng project activity.
 operating income $ 65.
 sales backlog 2013 $ 402 450 foreign exchange gains losses.
 lifo inventory valuation adjustments.
stranded costs discontinued operations.
.
 2013 loss $ 13. $ 4
 foreign exchange losses $ 5 lifo adjustments $ 4.
.
 2012 loss $ 4.
 unfavorable lifo adjustment.
 stranded costs discontinued operations $ 10.


contents areas business.
 regulation facilities operations suppliers additional permit requirements increased operating costs.
 future regulatory developments affect operations increase costs airline industry subsidiaries.
 part i item 1a.
 risk factors facilities infrastructure slots operate flight schedule expand route network impact operations business government regulation costs disruptions limits flexibility reductions demand competitive disadvantages subject environmental regulation costs.
 airline business labor intensive.
 salaries wages benefits largest expenses 31% operating expenses.
 active full-time employees december 31  2015.
 mainline operations wholly-owned regional carriers.
 pilots flight crew training instructors
 flight attendants
 maintenance personnel
 fleet service personnel
 passenger service personnel
 administrative
total|


operations 20142018 2017 net sales.
 millions years december 31 2018 % change
 net sales products systems integration $ 5100 $ 4513 13% 13 %
 services software 2243 20%
 $ 7343 $ 6380 15% 15 %
 products integration sales 69% % 2018 71% 2017.
 services software segment 31% 31 % 29% 29 % 2017.
 up $ 963 million 15% 15 % compared 2017.
 increase driven americas emea 13% 13 % increase products systems integration 20% services software.
 growth $ 507 million avigilon plant kodiak networks interexport 83 million accounting standards $ 32 million favorable currency rates.
 results americas grew 17% 17 % emea grew 18% % ap flat lower revenue.
integration 13% growth $ 318 million avigilon 2018 interexport 2017 $ 78 million asc 606 devices revenues avigilon demand americas emea systems revenues increased 10% 2018 revenue avigilon system deployments emea.
 services software 20% growth $ 189 million plant avigilon 2018 kodiak networks interexport 2017 $ 5 million asc 606 services $ 174 million 9% maintenance managed service revenues interexport plant software $ 202 million 89% revenue plant avigilon kodiak command center software suite.


pension plan investments master trust northern trust company.
 investments valued at fair value underlying.
 investments securities public exchanges valued at closing market prices no sale valued recent bid price.
 short-term investments cost fair value.
 investments registered investment companies common trust funds stocks bonds commodity futures valued market prices.
 majority assets equity securities higher returns.
 entail risks.
 balanced high quality debt securities.
 average quality rating exceeded aa.
 diversified invested in.
 treasury mortgage corporate securities intermediate average maturity.
 5 years.
 investment in securities union pacific prohibited.
 plan contribution plan non-union employees matching contributions.
 50 cents dollar contributed six percent compensation.
thrift plan contributions 14 2008 2007 13 2006.
 railroad retirement system employees covered.
 contributions expensed $ 620 million 2008 616 2007 615 million 2006.
 collective bargaining agreements postretirement healthcare life insurance employees.
 premiums expensed $ 49 million 2008 $ 40 million 2007.
 2008 2007 2006.
 rental income $ 87 $ 68
 net gain non-operating asset dispositions
 interest income
 sale receivables fees
 non-operating environmental costs
 $ 92


/27/13 materials.
 s&p 500 semiconductor composite 2019s common equity purchases common stock traded nasdaq global market.
 december 7 2018 2854 holders.
 five-year return stock october 27 2013 28 2018.
 compared return standard poor 2019s 500 stock index semiconductor composite index.
 $ 100 invested 27 2013 stock reinvestment dividends.
.
 past performance future performance.
 5 year cumulative return materials. s&p 500 index semiconductor composite index $ 100 invested 10/27/13/31/13 reinvestment dividends.
.
 s&p.
.
 10/27/2013/26/2014 10/25/2015 10/30/2016/29/2017/28/2018
. 121. 171. 343.
 s&p 500 index.117. 27 123. 37 159. 171.
. 126. 154. 29 221.


march 2000 company $ 850 million credit agreement banks loans letters credit maximum borrowing capacity.
 loans interest prime spread. 50%. libor spread 2%.
 spreads credit ratings term maturity.
 replaced $ 600 million revolving credit $ 250 million letter credit facilities.
 december 31 2001 $ 496 million available.
 commitment fees. 50%. per annum.
 debt borrowings unsecured obligations.
 may 2001 issued $ 200 million remarketable securities.
 mature june 15 2013 maturity no june 15 2014.
 first remarketing redeem roars 100% principal unpaid interest premium.
.
 interest accrues. 375%. until first remarketing set annually market rate bids.
.
 debentures convertible common stock conversion price $ 27. per share.
maturities debt december 31 2001 millions.
 2002 $ 2672
 2003 2323
 2004 1255
 2005 1819
 2006 1383
 12806
 $ 22258
 covenants 2019s recourse debt loan restrictive financial non-financial covenants.
 net worth cash flow debt capital.
 limitations additional debt dividends.
 provisions default.
 non-recourse debt financial non-financial covenants.
 limited subsidiary activity vary subsidiaries.
 reserves working capital limitations additional indebtedness.
 december 31 2001 $ 442 million restricted cash reserves balance sheets.
 restrict subsidiaries transfer retained earnings parent company.
 earnings $ 6. 5 billion at december 31  2001.


dividends board income financial condition cash requirements future prospects.
 cash dividends.
 repaid $ 589 million debt paydowns commercial paper payments capital lease repayments lynx express.
 overnite.
 issuances debt $ 128 million 2005 real estate.
 fixed floating interest rate cost borrowing future issuances repayments.
 two commercial paper programs borrow $ 7. billion.
 $ 739 million outstanding average interest rate 4. 01%
 balance current liability.
 european commercial paper program borrow. billion currencies.
 no outstanding.
 two credit agreements.
 revolving credit $ 1. billion expiring april 20 2006 21 2010.
 90-day libor plus 15 points.
 no borrowings.
 2003 $ 2. billion registration statement debt securities.
$ 126 million issued december 31 2005 ups notes program.
 debt instruments credit facilities cross-default ratings triggers financial covenants.
 $ 3. 0 billion net worth secured indebtedness.
 not financial condition tests satisfied december 31 2005.
 operating leases capital leases debt obligations purchase commitments liabilities.
 cash flow.
 summarizes obligations december 31 2005 capitalized leases operating leases purchase commitments.
 2006 64 403
 2007 107 348
 2008 115 248 738
 2009 66 176 652
 2010 61 126 30 478
 544 2637 689
 $ 414 $ 1845 $ 3652


penalties liability $ 1 million december 31 2018.
 2017 decrease income tax expense $ 1 million interest penalties no material liability december 31 2017.
 statute limitation expirations.
 2016 decrease income tax expense $ 2 million interest penalties total liability $ 1 million december 31 2016.
 reductions prior year tax positions settlement taxing authority.
 tax years examination open tax jurisdictions.
 united states
 connecticut
 mississippi
 virginia
 2014 tax year closed.
 uncertain tax positions asserted authorities greater accrued.
 additional provisions federal state income tax recorded revised estimates.
 settle lower.
 12 liability uncertain tax positions decrease $ 14 million resolution federal uncertain tax position.
company pre-compliance assurance irs 2011 2012.
 part irs compliance 2014 2018 tax years.
 examination.
 deferred income taxes reflect differences assets liabilities financial reporting tax.
 calculated balance sheet date current tax laws rates.
 reduction corporate income tax rate 35% 21% revalued net deferred tax assets december 31 2017.
 long-term consolidated.


properties october 27 2013 location.
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 plant warehouse headquarters distribution research development engineering leased.
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 plant warehouse leased.
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 plant warehouse.
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 plant warehouse 315000 leased.
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 plant warehouse support.
 austin texas gloucester rehovot.
 services austin.
 tainan taiwan california.
energy environmental solutions manufactured alzenau germany treviso italy cheseaux switzerland.
 owns leases offices plants warehouse 78 locations 18 21 japan 15 north america 8 china 7 6 southeast asia 3 taiwan.
 facilities manufacturing research development engineering marketing sales customer support.
 owns 139 acres buildable land texas california israel italy additional building space.
 considers properties adequate current future requirements.
 assesses size capability location infrastructure adjustments.
 ownership
 santa clara office plant warehouse manufacturing support 1476000150000
 austin tx 1719000145000
 rehovot 4170005000
 singapore 39200010000
 gloucester 315000131000
properties october 27 2013 location.
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 plant warehouse headquarters distribution research development engineering leased.
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 plant warehouse leased.
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 plant warehouse.
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 plant warehouse.
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 plant warehouse 315000 leased.
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 plant warehouse support.
 austin texas gloucester rehovot.
 services austin.
 tainan taiwan california.
energy environmental manufactured alzenau treviso cheseaux switzerland.
 owns leases offices plants 78 18 21 japan 15 north america 8 china 7 korea 6 southeast asia 3 taiwan.
 manufacturing research development engineering marketing sales customer support.
 owns 139 acres texas california israel italy.
 properties adequate requirements.
 assesses size capability infrastructure.


2.
 locations december 31 2011.
 facilities leased except 165000 square feet office alpharetta georgia.
 restructuring.
 alpharetta georgia
 arlington virginia
 city
 menlo park california
 sandy utah
 new york
 chicago illinois
 facilities used trading investing balance sheet management segments.
 leased facilities less 25000 square feet not.
 lease 28 e*trade branches 2500 to 7000 square feet.
 facilities space adequate needs 2012.
.
 legal proceedings october 27 2000 ajaxo.
 complaint california.
 damages non-monetary relief breach non agreement wireless misappropriation trade secrets.
 judgment 2003 favor $. million breach non-disclosure agreement.
 court denied requests damages.
december 21 2005 california court appeal affirmed award breach nondisclosure agreement remanded case determining additional damages ajaxo misappropriation trade secrets.
 paid case remanded trial court may 30 2008 jury denying claims damages.
 september 5 2008 ajaxo filed motions new trial.
 november 4 2008 court denied motions.
 december 2 2008 ajaxo filed appeal.
 argument heard july 15 2010.
 august 30 2010 court appeal affirmed verdict reversed.
 petitioned supreme court review.
 december 16 denied petition remanded trial court.
 2011 granted limited discovery november 4 set motion schedule trial date.
 may 14 , 2012.
.
 october 2 2007 class action complaint federal securities laws filed against company


equity securities three months december 31 2007 repurchased 8895570 shares common stock $ 385. 1 million $ 1. 5 billion stock repurchase program february 2007 shares purchased average price paid share dollar value.
 price value
 october 2007 3493426 $ 43. $ 449.
 november 2007 $ 44. $ 322.
 december 2007 2510425 $. $ 216.
 fourth quarter 8895570 $.
 repurchases $ 1. 5 billion stock repurchase program february 2007.
 management authorized february 2008 purchase shares open market prevailing prices securities laws subject market conditions.
 trading plans rule 10b5-1 exchange act insider trading laws trading blackout periods.
december 31 2007 repurchased 4. 3 million shares common stock $ 163. 7 million.
 february 2008 approved new stock repurchase program authorized purchase $ 1. 5 billion stock.
 purchases subject cash 1a report additional financing repurchase refinance indebtedness future growth expansion initiatives 7 financial condition results operations.


valuation techniques 2013 cash equivalents short-term-market instruments valued cost fair value.
.
 level 1 traded active national exchanges valued closing prices last trading day.
.
 not trustee obtains quotes pricing vendor broker investment manager.
 categorized level 2 quotes 3.
 commingled equity funds valued net asset value.
 total value divided by shares.
 categorized level 1 if traded recognized exchange 2 corroborated market data. redeem.
 fixed income investments level 2 valued pricing models market data. bids quoted prices.
 categorized level 3 valuations unavailable.
 trustee obtains pricing indicative quotes bid evaluations vendors brokers investment manager.
equity real estate hedge funds valued models unobservable inputs market data.
 valuations determined by general partners.
 valuation income market approaches.
 market transactions income cash flows adjusted liquidity risk.
 hedge funds valued by independent administrators pricing sources models.
 categorized as level 3 redeem investment.
 commodities traded on commodity exchange valued at closing prices last trading day year.
 contributions benefit payments funding requirements defined benefit pension plans internal revenue code rules.
 2013 contributions $ 2. 25 billion.
 plan $ 1. 0 billion 2014.
 $ 98 million retiree medical life insurance plans.
 contributions 2014.
 estimated future benefit payments employee service as december 31 2013.
defined benefit pension plans $ 1960 2030 2110 2200 2300 13240
 retiree medical life insurance
 401 k ) employees.
 2019 contributions.
 $ 383 million 2013 380 million 2012 378 million 2011 funded common stock.
 44. 7 million 48. 6 million shares common stock.


selling costs increased $ 5. 4 million to $ 17. 1 million 2005 from 11. 7 million 2004.
 due increased headcount startup costs international growth initiatives.
 6. 1%. 2005 from. 7%. 2004.
 payroll costs increased $ 8. 6 million to $ 26. 9 million 2005 from 18. 3 million 2004.
 footwear line added technology equity compensation costs retail stores invested compliance.
 increased. 6%. 2005 from. 2004.
 corporate costs increased $ 7. 2 million to $ 25. 5 million 2005. million 2004.
 footwear initiative freight duty expansion leased office space distribution facility.
 costs 9. 1%. 2005. 2004.
 income operations increased $ 10. 5 million. to $ 35. 9 million 2005 from 25. million 2004.
 12. 7%.% 2005 from 12. 4%. 2004.
 gross margin offset selling administrative expenses.
 increased $ 1. 6 million to $ 2. 9 million 2005 from. 3 million 2004.
 due higher borrowings interest rate revolving credit facility public offering.
 income taxes increased $. 5 million to $ 13. 3 million 2005 7. 8 million 2004.
 effective tax rate 40. 2%. 32 3%. 2004.
 due state tax rate reduced tax credits.
 net income increased $ 3. 4 million to $ 19. 7 million 2005 16. 3 million 2004.
 revenues increased $ 89. 8 million. $ 205. 2 million 2004. 4 million 2003.
 net sales license revenues.
. 8%. 8 %
.
. 2%. 2 %
accessories 7548 2072 5476.
 sales 200874 113755 87119. 6 %
 revenues 4307 1664.
 205181 115419 89762 77.


reconciliation unrecognized tax benefits.
 2014january 1 2008 $ 7928
 july 31 2008 3525
 increases 2454
 decreases -1572
 increases 2255
 reductions statute limitations -1598
 currency fluctuation -259
 settlements -317
 benefit 2014december 31 2008 $ 12416
 $ 5. 6 million effective tax rate.
 $ 5. million goodwill $ 1. 9 million adjustments tax.
 uncertain tax positions $ 2. 6 million resolved twelve months.
 recognizes interest penalties unrecognized tax benefits income.
 recorded interest $ 171000 2008.
 penalties insignificant.
 liability penalties $ 498000 interest $ 1. 8 million.
 subject taxation.
 states foreign jurisdictions.
company 2005 2008 tax years open revenue.
 2005 2006 federal returns under examination.
 foreign subsidiaries filings state tax filings.
.
 profit-sharing 401 ( k )-sharing plans full-time employees salary reduction section 401.
 matching contributions 100% first 3% additional 25% next 5% maximum. compensation
 discretionary profit sharing contribution 0% to 5% compensation employed worked 1000 hours.
 subsidiary acquired 401 ( k ) plan.
 no matching employer contribution.
 defined contribution pension arrangements international employees.
 retirement programs $ 3. 7 million 2008 $ 4. 7 million 2007 $ 4. 1 million 2006.
.
 non-compete employment agreements not disclose trade secrets confidential information engagement


long-lived assets undiscounted cash flows.
 flows value written down estimated values 5.
 retirement obligations 2003 financial accounting standards.
.
 fair value liability.
 liability costs increasing carrying amount asset.
 liability present value capitalized cost depreciated over life.
 settlement settles obligation recorded incurs gain loss.
 obligations.
 include ash landfills water treatment basins removal dismantlement plant equipment.
 december 31 2003 2002 liabilities $ 29 million $ 15 million.
 no assets legally restricted settling.
.
 recorded additional liability $ 13 million net asset $ 9 million cumulative effect change accounting principle $ 2 million taxes.
 amounts retirement obligations december 31 2003.
 balance december 31 2002 $

 liability accounting change 13
 accretion expense 2
 change cash flows -1
 balance at december 31 2003 $ 29
 proforma net income earnings per share presented 2002 2001 sfas.
 143.
 sfas 143 applied asset retirement obligation at january 2001 december 2002 $ 21 million $ 23 million $ 28 million.
 long-term liabilities non-legal obligations removal assets ipalco $ 361 million $ 339 million at december 31 2003 2002.
 deferred financing costs.
 net accumulated amortization of $ 202 million $ 173 million december 31 2003 2002.
 project development costs capitalizes costs projects milestones.
 services permits options interest.
 transferred to construction expensed.


staff finance risk human resources legal compliance expense operations technology treasury items.
 31 2010 $ 272 billion assets citi 2019s liquidity portfolio $ 87 billion cash deposits.
 net interest revenue $ 1059
 non-interest revenue -8898
 interest expense $ 1754 -2258
 operating expenses $ 1953 1418 511
 provisions loan losses benefits claims 2014
 loss operations before taxes $ -199 -11973
 benefits taxes -153 -4356 -585
 loss continuing operations $ -46 -7617 -2184
 discontinued operations taxes -68 -445
 income loss noncontrolling interests -114 -8062 1818
 loss noncontrolling interests
 income loss $ -66 -8060
.
2009 revenues interest loss debt extinguishment $ 20 billion tarp exit loss-sharing agreement.
.
 revenues increased afs securities lower interest rates improved treasury results.
 offset pretax gain citi exchange offers.
 operating expenses legal expenses non-compensation expenses.
.
 interest pretax loss debt extinguishment exit.
.
 declined 2008 sale citigroup services.
 offset pretax gain exchange intersegment eliminations.
 operating expenses increased intersegment eliminations compensation lower repositioning reserves.


five-year cumulative return compares citigroup common stock s&p 500 financial index five 2009.
 $ 100 invested december 31 2004 citigroup stock&p 500 dividends reinvested.
 five-year return.
 31 citigroup s&p 500 financial index
 104. 106.
 2006 124. 121. 126.
 70. 127. 103.
 18. 81. 47
. 102. 55.


results second step december 31 2008 company recorded $ 9. 6 billion pretax $ 8. 7 billion after-tax goodwill impairment fourth quarter 2008 most goodwill allocated units.
 primary cause goodwill impairment deterioration financial markets global economic outlook mid-november year-end 2008.
 significant fair value adjustments purchase price allocation loans debt intangibles.
 adjustments assets implied fair value goodwill not reflected consolidated balance sheet.
 table shows units goodwill balances excess fair value allocated book value december 31 2009.
 allocated.
 north america banking 174%
 latin america
 securities
 services
 brokerage asset management
 local lending
 excluded no goodwill allocated.
no impairment noted in company 2019s consumer lending 2014cards unit test at november 30 2009 goodwill may sensitive to deterioration economic conditions.
 earnings transaction multiples selected from guideline companies acquisitions.
 performance financial condition return on equity net income growth.
 utilized discount rate risk uncertainty selected 2012 terminal year.
 small deterioration assumptions growth could affect impairment evaluation results.
 cash flows could experience future impairment charges $ 4683 million goodwill unit.
 charges affect tier 1 capital regulatory ratios common equity liquidity position.


schlumberger subsidiaries common stock treasury millions.
 balance january 1 2008 1334 -138 1196
 shares sold optionees exchanged
 employee stock purchase plan
 repurchase program
 conversions debentures
 december 31 2008 1334 -140 140 1194
 sold optionees exchanged
 restricted stock
 employee stock purchase plan
 repurchase program
 december 31 2009 1334 -139
 smith international. 176
 shares sold optionees exchanged
 stock purchase plan
 repurchase program
 conversions debentures
 balance december 31 2010 1434 -73 ( 1361
 consolidated financial statements


jpmorgan chase co.
 2004 annual report 29 firms aligned business segments.
 expenses corporate functions technology operations segments retained corporate.
 include parent company costs adjustments corporate staff technology operations market prices one-time items.
 capital allocation segment peer comparisons economic risk measures regulatory capital requirements.
 capital equity.
 third quarter 2004 new methodologies capital segment.
 goodwill capital allocated corporate.
.
 elected not include goodwill management reporting.
 capital management section page 50 equity framework.
 credit reimbursement portfolio exposures.
 merger reimbursement methodology revised pre-tax earnings cost capital.
 earnings allocated capital clients.
 tax-equivalent adjustments results reflect revenues.
 page 25 annual report details.
business segment reporting methodology reflect stand-alone.
 management allocates income expense market-based methodologies.
 merger allocation method ologies revised.
 changes effective july 1 2004.
 prior periods not methodologies not comparable to third quarter 2004.
 firm assumptions methodologies reporting reclassifications segment reporting refinements future.
 revenue sharing segments products share revenues.
 sharing agreements revised merger consistency.
 funds transfer pricing interest income expense interest rate risk corporate.
 retain interest rate exposures interest rate risk exposure managed corporate.
 third quarter 2004 revised conform policies combined.
 expense allocation segments services support units costs allocated.
 based on actual cost usage.
third quarter 2004 cost allocation heritage segment results 2013 december 31 earnings return common equity.
 31 millions 2003
 investment bank $ 2948 $ 2805 5% 17% 17 15% %
 retail financial services 2199 1547
 card services 1274  683
 commercial banking 608 307
 treasury securities services 440
 asset wealth management 681 287
 corporate 61 668
 $ 8211 $ 6719 22% 22 % 16% 19% 19 %


adjustments from tax examinations.
 outcome audits.
 adjust income taxes.
 liquidity financial information statistics 2013 2012 2011 balances cash equivalents securities satisfy working capital asset purchases liquidity requirements 12 months.
 cash for future dividends share repurchase from domestic cash.
 activities borrowings.
 2012 $ 111. 3 billion $ 82. 6 billion cash equivalents securities foreign subsidiaries.
 dollar-denominated holdings.
 subject to.
 income taxation.
 portfolio in highly-rated securities policy limits credit exposure issuer.
 risk principal loss.
 cash $ 53. 7 billion $ 37. billion net income non-cash adjustments $ 10. 2 billion increase net change operating assets liabilities $ 6. 5 billion.
 investing $ 33.2013 purchases sales securities $ 24. billion property plant equipment. billion.
 common stock $ 22. 9 billion dividends $ 10. 6 billion offset long-term debt $ 16. billion.
 $ 50. billion 41. 7 billion non-cash adjustments $ 9. 4 billion offset operating assets liabilities $ 299 million.
 $ 48. 2 billion purchases sales maturities securities $ 38. 4 billion property plant equipment $ 8. 3 billion.
 $ 1. 7 billion dividends rights $ 2. 5 billion.
 expenditures $ 7. billion $ 499 million retail $ 6. 5 billion.
 payments $ 8. 2 billion.
 equivalents securities 146761
 property equipment
 long-term debt
 working capital
 operating 53666investing $ -33774 -48227 -40419
 financing activities $ -16379 -1698 ( 1444


use foreign currency contracts reduce risk exchange rate fluctuations intercompany transactions inventory purchases european canadian subsidiaries.
 currency contracts risk fluctuations pound sterling.
 enter derivative instruments speculative trading.
 contracts receive.
 dollars canadian dollars. per $ 1.
 dollars euros. euros pounds.
 value contracts canadian subsidiary $ 51. 1 million maturities 1 month european subsidiary $ 50. million maturities 1 month.
 contract fluctuations pound sterling. 5 million $ 13. 6 million maturity 1 month.
 contracts not cash flow hedges changes fair value recorded statements.
 values contracts liabilities $ 0. 7 million $ 0. 6 million december 31 2011 2010 included accrued expenses consolidated balance.
 note 10 fair value measurements.
amounts foreign currency exchange rates contracts.
 year ended december 31 thousands 2011 2010
 unrealized foreign currency exchange rate gains losses $ -4027 ( ) $ -1280 ( 1280 ) 5222
 gains losses -2638 ( 2638 ) -261 ( 261 )
 unrealized derivative losses -31 ( 31 ) -809 ( 809 )
 gains losses 1696 3549 -4412 ( )
 currency contracts institutions investment grade credit ratings exposed credit losses non-performance.
 credit risk limited unrealized gains.
 monitor credit quality risk counterparty default minimal.
 currency contracts minimize impact fluctuations financial.
 cost overhead costs affect results.
 high inflation gross margin selling administrative expenses increase.


financial statements american airlines.
 files tax returns laws jurisdictions.
 2004 2013 tax years subject examination revenue.
 foreign years open under examination tax litigation.
 additional assessments immaterial financial statements.
 unrecognized tax benefit $ 5 million twelve months december 31 2014.
 changes tax benefit impact effective tax rate valuation allowance.
 accrued interest tax positions interest expense not significant december 31 2014.
 reconciliation amounts unrecognized tax benefit millions.
 tax benefit january 1 $ 5
 2014
 december 31 $ 5
 estimates realized next twelve months.
.
 economic prospects health economy price fuel.
 airline revenues influenced.
.
 unfavorable conditions decreased passenger demand changes booking practices revenues.
challenging economic times competitors revenues american 2019s revenues.
 operating results impacted by availability price volatility cost aircraft fuel largest cost business.
 fuel small increase price operating results liquidity.
 jet fuel market prices fluctuated 2014.
 impact american 2019s results operations financial performance liquidity.
 fuel price risk management american sold fuel hedging contracts june 30 2014.
 transactions since december 9 2013 december 31 2014 fuel hedging contracts outstanding.
 exposed to fluctuations fuel prices.
 current policy not reviews policy.


april 3 , 2014 board directors approved pnc 2019s quarterly dividend 44 to 48 cents may 5  2014 dividend.
 submitted capital plan federal reserve january 2015.
 expects federal reserve response march 2015.
 supervision regulation section federal reserve ccar process capital plans liquidity risk management standards.
 rules.
 table 42 affiliate purchases notes pnc 2014.
 february 6 2015 pnc used $ 600 million floating rate senior notes.
 dividends subsidiary bank impacted bank-level capital needs laws regulations corporate policies contractual restrictions factors.
 limitations banks pay dividends capital distributions extend credit.
 dividend payments pnc bank without approval approximately $ 1. 5 billion december 31 , 2014.
 note 20 regulatory matters financial.
information contractual restrictions note 12 subsidiary consolidated financial statements item 8.
 dividends pnc bank company liquidity cash investments loan repayments subsidiaries equity investments.
 liquidity non-bank subsidiaries debt equity securities public private markets.
 shelf registration statement additional debt equity instruments.
 issued company debt $ 750 million subordinated notes maturity april 29 2024.
 payable semi annually fixed rate 3. 90%. april 29 october 29 parent company debt capital instruments decreased $ 10. billion december 2014. billion 2013.
.
.
.
.
.
 $ 5. billion commercial paper program additional liquidity.
 no issuances outstanding.
 pnc terminated $ 3. billion paper program.
17 equity 8 16885192 warrants pnc common stock $ 67. 33 per share.
 sold.
 treasury 2010.
.
 expire december 31 2018 diluted earnings share earnings share.
 credit ratings short-term long-term funding collateral requirements influenced pnc debt ratings.
 agencies capital adequacy liquidity asset quality business mix earnings legislative regulatory environment government support.
 pnc financial services group.


table contents.
 acquisitions dispositions plant closures.
.
 december 1 2016 company acquired 100% stock forli.
.
 leading thermoplastic compounder.
 acquisition increases global engineered materials platforms extends operational model expands project pipelines.
 business combination operations advanced engineered materials segment.
 financial information information.
 allocated purchase price assets liabilities estimated fair values.
 excess price recorded goodwill.
 calculated fair value assets income market cost approach.
 values determined inputs future cash flows discount rates royalty rates growth rates sales projections retention rates terminal values.
 purchase price allocation preliminary information subject to change information.
 final fair value adjustments.
 adjustments results.
 preliminary purchase price allocation softer acquisition december 1 2016 millions.

 cash equivalents 11
 receivables third 53
 inventories 58
 property equipment 68
 intangible assets 79
 goodwill 106
 other assets 33
 acquired 408
 trade payables third party -41
 debt -103
 deferred income taxes -30
 other liabilities -45
 liabilities assumed -219 (
 net assets acquired 189
 goodwill revenue operating synergies acquisition.
 deductible income tax.
 $ 23 million indemnity receivable tax.
 costs $ 3 million.
 net earnings loss 2% net earnings acquisition 2016.
.


american tower corporation subsidiaries financial statements loss retirement long obligations includes cash paid debt value cash convertible notes non-cash charges write-off deferred financing fees.
 includes gains repurchasing refinancing debt obligations.
 earnings per common share 2014basic diluted income 2012 2011 2010 common shares.
 income dilutive common share equivalents unvested restricted stock shares issuable stock options warrants treasury stock method conversion convertible notes.
 retirement plan company 401 ( k ) plan employees age employment requirements.
 matching contribution 31 2012 2011 2010 50% maximum 6% participant contributions.
 contributed $ 4. 4 million $ 2. 9 million $ 1. 9 million plan.
.
 prepaid current assets december 31.
income tax 57665 31384
 leases
 tax 22443 81276
 assets 19037 28031
 66790 59997
 december 222851 250273
 balances revised adjustments.


first quarter 2010 recorded additional charge $ 4. million cost reduction action.
 $ 3. 4 million lease costs cambridge wafer fabrication facility ceased.
 remaining $ 1. 3 million clean-up closure costs.
.
 stock integrant technologies.
 seoul.
 mobile tv market presence asian region.
 paid $ 8. 4 million purchase shares founder july 2007 2009.
 additional goodwill.
 2006 stock audioasics roskilde.
 acquisition low-power audio solutions expanding presence nordic eastern european regions.
 paid additional cash payments $ 3. 1 million 2009 revenue milestones 2006 2009.
 paid $ 3. 2 million technological milestones compensation expense.
 no additional payments.
 results integrant audioasics.
 results consolidated statement income.
.
compensation plan investments.
 trading.
 october 30 31 2009.
 money market funds $ 1840 $ 1730
 mutual funds 6850 6213
 investments 2014 short long-term $ 8690 $ 7943
 values based market quotes october 30 2010 october 31 2009.
 adjustments value operating expenses.
 gains losses not material 2010 2009 2008.
 company liability owed plan participants.
 investments available benefits plan.
 insolvent available unsecured creditors.
.
 equity securities long-term investments.
 fair value based market quotes cost-basis.
 adjustments fair value available-for-sale.
 consolidated financial statements 2014


$ 190 million 30% pre-tax earnings before equity.
 2009 quarter future deferred tax assets loss standard asset recognition.
 $ 156 million valuation allowance 100% assets.
 2009 2004 2005.
 tax audits $ 26 million credit.
 2008 income tax $ 162 million $ 207 million benefit special items $ 175 million tax benefit restructuring $ 23 mil.
 $ 29 million tax.
 $ 40 million benefit restructuring $ 2 mil.
 tax provision $ 369 million. pre-tax earnings.
 income tax provision 2007 $ 415 million $ 41 million settlement tax audits $ 8 million other tax.
 $ 423 million 30% pre-tax earnings before equity.
.
.
operating loss carryforwards $ 452 million 2010 2019 8 million 2020 2029 29 million indefinite 415 million.
 $ 204 million 2010 2019 75 million 2020 2029 129 million.
 $ 273 million.
 federal.
 state tax credit carryforwards 2010 54 million 2020 2029 32 million indefinite 187.
 $ 2 million state capital loss 2010 2019.
 deferred income taxes $ 3. 5 billion 2. 6 billion $ 3. 7 billion 2009 2008 2007.
.
 deferred tax liability.
 property machinery equipment.
 purchase obligations capital projects pulpwood logs wood chips raw materials energy services.
december 31 2009 future commitments leases purchase obligations millions 2010 2014 $ 177 148 124 96 79 184 2262 657 623 556 532 3729.
 $ 177 $ 148 124 $ 96 79 184
 2262 623  556 532 3729
 $ 2439 $ 805 $ 747 $ 652 $ 611 3913
 $ 2. 8 billion fiber supply agreements 2006 forestland sales.
 rent expense $ 216 million $ 205 million $ 168 million 2009 2008 2007.
 representations warranties indemnify tax environmental liabilities breaches.
 recorded cost.
 2008 recovery boiler vicksburg facility exploded fatality injuries


manufactures systems order backlog customer commitments.
 orders authorizations accepted shipment dates next 12 months contractual service revenue maintenance fees 12 months.
 backlog october 26 27 2014 2013 millions percentages.
 silicon systems group $ 1400  48% 48 % $ 1295  55% 55 %
 global services 775 27% 27 % 591 25% 25 %
 20% 361 15% 15 %
 energy environmental solutions 149 5% 5 % 125
 $ 2917  100% 100 % $ 2372
 backlog not indicative sales customer changes delivery cancellation orders.
 delay.
 delays reduction backlog business results.
 assembly test integration proprietary commercial parts components subassemblies systems.
implemented distributed manufacturing model in countries united states europe israel singapore taiwan assembly at customer sites.
 uses vendors supply parts assembly services.
 not always possible.
 key parts obtained from single.
 costs risks manufacturing service interruptions selecting qualifying alternate suppliers monitoring financial condition maintaining inventories qualifying new parts locating manufacturing operations close to suppliers customers.
 growth strategy requires new products expansion markets.
 investment in new products before demand.
 works with customers design systems processes technical production requirements.
 product development engineering organizations in united states europe israel taiwan china.
 outsources rd&e activities outside india singapore.
 process support demonstration laboratories in united states china taiwan israel.
investments rd&e $ 1. 4 billion 16 percent 2014 $ 1. 3 billion 18 2013 $ 1. 2 billion 14 percent 2012.
 13 percent net sales rd&e five years.
 maintains programs automation materials research environmental control.


net change valuation allowance years december 31 2018 2017 $ 12 million $ 26 million.
 deferred income tax assets liabilities recorded balance sheet.
 decrease tax assets.
 federal alternative minimum tax credits.
 deferred tax liabilities increased tax deferral transfer north american consumer packaging business subsidiary packaging.
 $ 1. 5 billion deferred tax liabilities $ 884 million 2006 international paper installment sale $ 538 million 2007 temple-inland installment sale.
 reconciliation unrecognized tax benefits years december 31 2018 2017 2016.
 millions
 balance at january 1 $ -188 $ -98
 reductions tax positions year
 prior years
 reductions
 settlements
 expiration statutes
 currency translation adjustment
december 31 $ -220 $ -188 $ -98
 unrecognized tax benefits balances 31 2018 2017 2016 benefit tax rate.
 accrues interest tax benefits.
 penalties expense.
 $ 21 million $ 17 million accrued interest penalties benefits 31 2018 2017.
 major jurisdictions united states brazil france poland russia.
 tax years 2006 2017 open.
 faces challenges taxes.
 allocation.
 audit settlements expiration statute limitations reduce tax positions $ 30 million.
 brazilian federal revenue service deductibility goodwill amortization 2007 acquisition international paper brasil.
 assessments 2007-2015 $ 150 million tax $ 380 million interest penalties december 31 2018.
 unfavorable decision 2018.
 appeal 2019.
company believes evaluated transaction concluded brazilian tax law tax position.
 defend 2015.
 flow-through method investment tax credits open-loop biomass facilities heat power expenditures.
 credits recognized income tax expense.
 recorded tax benefit $ 6 million 2018 $ 68 million 2017 2013-2017.


i o n 2 2 0 0 2 consolidated financial statements company recognizes income long-term construction contracts general percentage of completion method.
 profits recorded estimates percentage completion progress results.
 estimated earnings accrued estimates completion contract expenditures.
 property sales gains from depreciated property recognized financial accounting standards.
 included in earnings sales land depreciable property dispositions net impairment adjustment operations.
 gains losses from sale property sale recognized sfas 66 included in construction management development activity income.
 net income per common share computed income by weighted average number common shares period.
 diluted net income income minority interest earnings average potential common shares.
table reconciles basic diluted net income per share series d stock series g limited partner units anti-dilutive 31 2002 2001 2000 no conversion to common shares in dilutive potential common shares.
 2002 company redeemed series g units $ 35. 0 million.
 joint venture partner option convert ownership to common shares.
 option earnings per share dilutive december 31 2001 conversion to common shares included in dilutive potential common shares.
 company real estate investment trust.
 meet requirements 90% taxable income to stockholders.
 reit status.
 entitled tax deduction for dividends.
 subject federal taxes equal taxable income stockholders.
 reit subject federal taxes income.
 qualify four subsequent years.
 reit qualification reduces state local taxes paid.
company 2019s financial statements include subsidiaries dividends subject taxes.
 federal excise taxes transactions.
 2001
 net income common shares $ 161272 229967 212958
 venture income 2014
 minority interest earnings 18568 32463 32071
 diluted net income $ 179840 $ 265853 245029
 133981 129660 126836
 15442 18301 19070
 2092
 dilutive shares stock-based compensation plans 1416 1657 1535
 150839 151710


reduction.
 federal corporate income tax rate from 35% to 21% 21 %.
 2017 tax act.
 tax code repeal section 199 domestic production activities deduction 2018 accelerated depreciation full expensing property fourth quarter 2017.
 staff issued accounting bulletin tax effects 2017 act.
 measurement period beyond one year.
 entities recognize impact financial statements.
 provisional amounts estimate.
 reduction revalued net deferred tax liability excluding credits december 31  2017.
 recognized net tax benefit of $ 2. 6 billion reduction income tax expense year december 31 2017.
 provisional adjustments not completed accounting for income tax effects 2017 act accelerated depreciation full expensing property.
 reconciliation.
 income tax rate to effective.
. tax rate 35. 0%. %
taxes federal benefit 2. 1 3. 7.
 production -1. 3
 domestic valuation allowance. 1. 7.
 state local estimates 3. 5. 7.
 reclassification income 3. 5
 2017 tax act -101. 6 101. 6
 -1. 8 1. 8. 3. 3
 tax expense 60. 8 32. 9%. 9 % 36. 3%. 3 %
 2017 effective rate lower deferred tax liabilities 2017 tax act.
 offset state illinois income tax rate change reclassification tax bm&fbovespa shares.
 2016 rate lower valuation allowances bm&fbovespa shares.
 offset state tax expense tax.
 2015 rate higher state local income taxes.
 reduced deduction state local apportionment deferred tax expense.
section 199 deduction activities platform.


2014 goodwill testing impairment 2011 accounting standard update assess qualitative factors two-step quantitative goodwill impairment test.
 effective annual interim january 1 2012.
 financial condition cash flows.
 merger acquisitions holly - frontier merger february 21 2011 agreement business diversified company broader sales footprint stronger financial position efficient overhead structure earnings share.
 frontier crude oil refining wholesale marketing refined petroleum products el dorado cheyenne refineries rocky mountain plains.
 july 1 2011 north acquisition. subsidiary holly merged frontier.
 changed name hollyfrontier corporation ticker symbol. frontier merged.
 issued. million shares hollyfrontier common stock frontier stockholders.
 share converted.4811 shares hollyfrontier stock fractional shares paid cash.
 consideration $ 3. billion.
 july 1 2011 closing price $ 35. 93 equity awards frontier pre-merger.
 shares price adjusted two-for-one stock split august 31 2011.
 merger.
 purchase price allocated acquired assets liabilities excess goodwill.
 location refining facilities synergies business operations.
 not deductible income tax.
 fair value estimates frontier assets liabilities 2011.
 cash equivalents 872.
 accounts receivable 737.
 inventories.
 properties plants equipment 1054.
 goodwill.
 taxes receivable.
 assets.
 accounts payable.
 accrued liabilities.
 long-term debt.
 long-term liabilities.
 deferred income taxes.
 assets liabilities $ 3705.


performance graph shows return common stock standard&p 500 index dow jones financials index december 31 2009 2014.
 e*trade financial corporation 100. 90. 45. 50 111. 137.
 s&p 500 index 100. 115. 117. 136. 180. 205.
 dow jones financials index 100. 112. 98. 124. 167. 191.


part ii item 5 market registrant's common equity stockholder matters issuer purchases motorola common stock listed new york chicago stock exchanges.
 stockholders january 31 2006 80799.
 reference note 15 financial data financial statements 8 financial statements.
 table common stock quarter december 31 2005.
 issuer purchases equity securities maximum number total purchased value average price.
 total number shares purchased average price paid share maximum number dollar value shares
 10/2/05 to 10/29/05 5506400 $ 21. 16 $ 3367111278
 10/30/05 11/26/05 4968768 $ 22. $ 3257373024
 11/27/05 to 12/31/05 $ 23. 26 $ 3128512934
 $.
may 18 2005 company authorized repurchase $ 4. 0 billion common stock 36-month period ending may 31 2008 subject market conditions repurchase.
 transactions equity compensation plans delivery 342415 shares motorola common stock tax withholding surrender 123 shares option exercise price.
 average price share stock repurchased execution price excluding commissions.


part iii item 10.
 directors executive officers corporate governance see 201celection directors board governance 16 beneficial ownership reporting compliance proxy statement 2015 annual meeting.
 filed 120 days fiscal year.
 executive officers part i report pages 11 - 12.
 item 11.
 executive compensation compensation committee report insider participation proxy statement 2015 annual meeting.
 item 12.
 security ownership beneficial owners management stockholder matters proxy statement 2015 annual meeting.
 table information december 31 2014 equity plans category number securities issued outstanding options warrants rights weighted-average exercise price number securities future issuance equity compensation plans excluding securities plans. 4903018 item 13.
relationships transactions director independence 13 transactions governance proxy statement 2015 annual meeting.
 14.
 accounting fees services 201caudit non-audit fees 201cpolicy audit committee approval accounting firm proxy statement 2015 annual meeting.
 plan category issued options warrants rights weighted-averageexercise price issuance compensationplans
 equity compensation plans security holders 1233672 $ 75. 4903018
 part iii item 10.
 directors executive officers corporate governance 201celection directors 201cnominees election board directors governance 16 beneficial ownership reporting compliance proxy statement 2015 annual meeting.
 filed 120 days fiscal year.
 executive officers part i report pages 11 - 12.
.
compensation item 11 see compensation committee report insider participation proxy statement 2015 annual meeting.
 item 12.
 security ownership beneficial owners management stockholder matters proxy statement 2015 annual meeting.
 table december 31 2014 equity plans category securities issued options warrants rights weighted-average exercise price securities future issuance compensation plans excluding 1233672 $ 75. 93 4903018 item 13.
 relationships transactions director independence transactions 201d governance proxy statement 2015 annual meeting.
 item 14.
 accounting fees services 201caudit non-audit fees audit committee approval audit services public accounting firm proxy statement 2015 annual meeting.


contents configuration amenities loyalty programs travel agent reservation systems onboard products markets services.
 compete major network airlines low-cost carriers.
 international service canada central south america asia australia new zealand.
 compete with.
 foreign investor-owned state owned airlines middle east three largest benefit government subsidies.
 international.
 carriers marketing relationships alliances cooperation agreements exchange traffic.
 201cticket distribution marketing agreements.
 airline business labor intensive.
 2016 mainline regional salaries wages benefits largest expense 35% total operating expenses.
 labor relations regulated labor act national mediation board disputes labor unions.
 amendable notify.
 meet direct negotiations no agreement request federal mediator.
 timetable negotiation mediation process.
processes last months years.
 no agreement mediation nmb declare impasse exists nmb proffers binding arbitration.
 decline.
 arbitration rejected 30-day 201ccooling off 201d period commences.
 no agreement 201cself-help 201d begin unless presidential emergency board peb established.
 examines recommends solution.
 lasts 30 days no resolution followed another off 30 days.
 labor organization exercise strike airline resort-help amendments hiring new employees striking.
 table number active full-time employees as of december 31 2016.
 mainline operations regional carriers.
 pilots flight crew training instructors 13400
 flight attendants 24700
 maintenance personnel
 fleet service personnel
 passenger service personnel 15900
 administrative other 16000
total 122300


payments early redemption discounted treasury security.
 discount debt costs amortized 2022.
.
 issued $ 1. 5 billion unsecured obligations.
 $ 750 million 4. 25%. notes 2021 $ 750 million floating rate repaid 2013.
 proceeds repurchase blackrock 2019s series merrill lynch.
 interest 4. notes 2021 payable semi-annually may november 24 2011 $ 32 million per year.
 notes redeemed maturity redemption price.
 discount debt costs amortized 2021.
.
 2009 issued $ 2. 5 billion unsecured.
 three $. billion. 25%. notes repaid december 2012 $ 1. billion 3. 50%. repaid 2014 $ 1. billion 5. notes 2019.
proceeds offering borrowings cp program barclays global investors 2009 corporate purposes.
 interest 2019 notes $ 50 million payable semi-annually june december 10.
 redeemed maturity redemption price.
 unamortized discount debt costs amortized remaining term 2019.
.
 issued $ 700 million. 25%. senior unsecured notes september 15 2017.
 proceeds acquisition fund-funds business remainder corporate purposes.
 interest payable semi-annually march september 15 $ 44 million per year.
 notes redeemed maturity price.
 unamortized discount debt costs amortized remaining term 2017.
.
 leases office spaces 2035.
 future commitments.
 135
 2019 125
 2020 120
 2021
rent office equipment lease $ 134 million $ 136 million $ 132 million 2016 2015 2014.
.
 december 31 2016 company had $ 192 million capital commitments sponsored investment funds.
 private equity real assets opportunistic.
 excludes commitments third-party.
 capital $ 192 million $ 12 million contingent commitments funds expired.
 timing funding unknown callable demand expiration.
 unfunded commitments not recorded statements.
 future commitments binding.
 intends additional capital commitments investment products.
 business acquisitions.
 required performance targets capital commitments.
 remaining contingent payments december 31 2016 $ 115 million included.
.
 portfolio manager derivative transactions maximum potential exposure $ 17 million.
 note 7 derivatives hedging.
.
blackrock receives subpoenas.
 federal state international regulatory authorities


organizational structure republic way operating model fosters high performance culture 360-degree accountability profit loss responsibility local management functional structure expertise.
 markets management market dynamics.
 senior management manages financial performance operations two field groups 1 2.
 western 2 southeastern mid eastern seaboard.
 areas business units.
 provide collection transfer recycling landfill services.
 note 14 segment reporting consolidated financial statements item 8 form.
 productivity cost control initiatives best service.
 fleet automation 75% residential routes converted to automated single-driver trucks.
 labor costs driver productivity emissions safer work environment.
 communities automated vehicles higher participation recycling programs.
 fleet conversion to compressed natural gas 20% fleet natural.
 continue fleet conversion.
 value previous fleet investments.
13% replacement vehicle purchases 2018 cng vehicles.
 competitive advantage clean emission initiatives.
 cng reduces fleet costs lower fuel expenses.
 operated 37 cng fueling stations.
 seventh largest vocational fleet states.
 average fleet age age.
 residential 7000.
 small-container 4700.
 large-container 4300.
 total 16000.
 onefleet standardized vehicle maintenance program best fleet management truck care maintenance.
 variability


blackrock april 2009 acquired $ 2 million management contracts five-year r3 capital partners funds.
 december 2009 acquired $ 163 million contracts 10 years.
 amortization expense five years.
 2010 160
 2011
 2012
 2013
 2014
 contracts september 29 2006 acquired $ 4477 million 4271 million retail mutual funds $ 206 million alternative investment products.
 october 1 2007 $ 631 million contracts.
 purchased 20% investment manager hedge funds.
 $ 8 million contracts.
 december 1 2009 acquired $ 9785 million contracts exchange traded funds trusts.
 december 1 2009 ishares $ 1402. 5 million.
fair value determined royalty rate marketing promotion expenditures brands.
.
 entered five-year $ 2. 5 billion unsecured revolving credit facility additional $ 500 million borrowing capacity maximum $ 3. billion.
 exceed leverage ratio debt earnings 3 to 1 less to december 31 2009.
 2007 facility provides back-up liquidity working capital investment opportunities.
 $ 200 million interest rate. 44%. maturity february 2010.
 $ 100 million borrowings interest rate. 43%. maturity may 2010.
 lehman commercial paper.
 $ 140 million participation.
 additional.
 bank of america $ 140 million participation.
 cash funds two letters credit $ 100 million.
 2008 letters credit terminated.
october 14 2009 blackrock established program unsecured notes maximum $ 3 billion.
 proceeds financing bgi transaction.
 subsidiaries bank america barclays parties dealers cp program.
 supported 2007 facility.
 began issuance notes november 4 2009.
 31 $ 2 billion cp notes interest rate. 20%. maturity 23 days.
 repaid $ 1. 4 billion cp notes long-term notes.
 march 5 2010 $ 596 million cp notes interest rate. 18%. maturity 38 days.
 2008 blackrock. subsidiary five billion yen commitment-line agreement institution.
 one year interest short-term prime rate.
 june 2009.
 renewed-line one year.
 flexibility.
 december 31 2009 no borrowings outstanding-line.
convertible debentures february 2005 issued $ 250 million due 2035 interest 2. 625%. per annum.
 payable semi- annually february 15 august 15 commenced august 15 2005.
 2009 debentures convertible decem ber 31 2008 conversion rate. shares common stock per dollar.
 convertible cash additional shares 2019s common stock five trading price per debenture less than 103% last sales price blackrock 2019s common stock conversion rate corporate events merger consolidation transfer change control.
 february 15  2009 debentures convertible cash maturity option holder additional shares common stock current conversion rate.
debentures tendered for conver each one dollar converted holder cash shares blackrock common stock aggregate value by multiplying conversion rate by daily volume price blackrock common stock ten trading days.
 company conversion value to holders cash equal to aggregate conversion value principal amount if conversion greater than principal return amount shares equal to conversion value less principal return.
 net shares paid determined by dividing net share amount by ten-day weighted average price.
 cash based on ten-day weighted average price.
 conversion rate subject to adjustments corporate events change of control 193253ti_txt. 4/2/10 1:18 pm


15.
 financial statement schedules.
 morgan.
.
 liquids terminals. revenue bonds january 15 2018 columbus. 50%. revenue 2022 25. 25
 morgan.-jackson-union. revenue bonds april 2024 23.
 marine terminals bonds march 15 2025 40.
 subsidiary debt.
 unamortized debt discount long-term debt. 3
 maturities long-term debt. -596. 6
 long-term debt 2013 10282. 10007.
 2009-17 january 1 2010 balances business consolidated financial statements subordinated deferrable interest debentures.
 $ 500 million 9. notes february 1 2019 2008.
holder repurchase february 1  2012 price equal 100% principal amount plus accrued unpaid interest repurchase date.
 2012 interest.
 repurchase option irrevocable.
 morgan.
 2028 2098 debentures 2012 2015 senior notes redeemable. redemption prices.
 2027 debentures redeemable. after november 1 2004 prices.
 september 2 2010.
 paid remaining $ 1. million balance. 6. 50%. debentures due 2013.
 finance december 20 2010. public offering senior notes.
 issued $ 750 million 6. senior notes due january 15 , 2018.
 net proceeds $ 744. million principal 5. 35%. senior notes matured january 5  2011.
2011 2016 2018 2036 senior notes kinder morgan finance redeemable at kansas. option redemption prices prospectus supplements.
 guaranteed by kinder morgan kansas.
 principal interest additional amounts withholding canadian taxes.
 capital trust. trusts obligated for $ 12. 7 million of 8. 56%. capital securities april 2027 $ 14. 4 million of. 63%. securities 2028.
 2028 securities redeemable. redemption prices.
 2027 securities redeemable. limited circumstances prices prospectus supplements.
 redemption morgan kansas.
 interest proceeds redemptions capital securities pro rata.


2018 form 10-k 39 commercial paper program.
 maximum borrowing 2017 credit agreement $ 3 billion.
 market conditions revenue operating costs cash flows liquidity.
 rating agencies lower credit rating.
 no triggers maturity borrowings credit facility.
 downgrade credit increase cost limit issue commercial paper.
 seek alternative sources funding borrowing.
 31 2018 used cash working capital restructuring costs capital expenditures repayment debt dividends distributions share repurchases.
 cash credit facility provide liquidity global cash needs.
 31.
 2018 2017 2016
 operating $ 1762 -799 262
 investing -578
 financing -4363
 largest source cash payments customers collecting cash product sales.
 primary operating cash suppliers employees tax authorities material services.
generated $ 1762 million used $ 799 million 2018 2017.
 increased 2561 million 2018 better performance.
 working capital flows $ 300 million progress collection.
 payments $ 473 million $ 612 million employee severance restructuring merger.
 $ 799 million $ 262 million 2017 2016.
 decreased $ 1061 million 2017 $ 1201 million impact receivables monetization program restructuring.
 offset capital.
 payments $ 612 million $ 177 million employee severance restructuring merger.
 used $ 578 million $ 4123 million $ 472 million 2018 2016.
 capital expenditures.
 expenditures totaled $ 995 million $ 665 million $ 424 million 2018 2017 2016 offset sale property plant equipment $ 458 million $ 172 million $ 20 million.
disposal assets


scrap metal third-parties divested closed 2014 global products.
 intersegment sales improved 12% 2014 due average price higher regional premiums higher demand midstream downstream businesses.
 primary metals decreased $ 439 2015 lower aluminum price lower energy sales higher energy costs spain curtailment smelter.
 offset foreign currency movements stronger.
 dollar productivity improvements write-off inventory closure portovesme massena east smelters lower equity loss joint venture saudi arabia restart costs.
 atoi climbed $ 614 2014 higher aluminum price energy sales brazil productivity improvements currency stronger.
 lower costs carbon alumina maintenance outage 2013 power plant australia.
 offset unfavorable 2013 2014 capacity reductions write inventory higher energy costs labor maintenance.
2016 aluminum production 450 kmt lower third-party sales absence $ 400 2015 curtailment closure.
 energy sales brazil impacted decline prices net productivity improvements anticipated.
.
 2014 2013
 third-party aluminum shipments kmt 1775 1964 1905
 alcoa average price metric ton aluminum $ 3514 $ 3743
 third-party sales $ 6238 $ 7351 $ 7106
 intersegment sales 125
 total sales $ 6363 $ 7536 $ 7284
 $ 244 $ 245 $ 292
 price ton price metal conversion price aluminum.
 metal price.
 produces aluminum sheet plate end markets.
 one-half third-party shipments.
 seasonal increases can sheet sales second third quarters.
segment includes sheet plate sold distributors aerospace automotive commercial transportation building construction industrial products.
 small produces aseptic foil packaging.
 base large sheet plate small.
 sales costs expenses transacted local currency.
 dollar euro russian ruble brazilian real british pound.


contents 1b.
 comments 2.
 locations december 31 2015.
 square footage facility restructuring.
 alpharetta georgia
 arlington virginia
 utah
 menlo park
 new york
 facilities leased december 31 2015.
 trading investing balance sheet management.
 leased facilities less 25000 square feet.
 30 regional branches 2500 8000 square feet.
.
 legal proceedings matters note 19 2014 regulatory matters.
.
 financial statements data report.
.
 mine safety disclosures.


net earnings companies m-i swaco joint venture 2010 eight months smith transaction.
 $ million 2011 increased $ 91 million due $ 4. 6 billion long-term debt schlumberger.
 expense $ 207 million decreased $ 14 million borrowing rates 3. 9%. to. 2%. 2 %.
 research engineering general administrative expenses revenue.
 2. 7%. 7 %. 3%. 3 % 5%. 5 %
. 1%. 1
 research engineering decreased 2011 increased $ 154 million $ 117 million.
 increases smith acquisition.
 income taxes schlumberger effective tax rate 24. 4%. 4 % 2011 17. 3%. 3 % 2010 19. 6%. 6 % 2009.
 tax rate sensitive geographic mix earnings.
.
.
 impacted charges credits financial.
effective tax rate 2011 24. 0%. 20. 6%. 6 2010.
 schlumberger generated larger pretax earnings north america 2011 improved market conditions activity acquired smith businesses.
 tax rate 2009 impacted charges credits.
 rate 2010 20. 6%. 6 % 19. 2%. 2 % 2009.
 increase attributable geographic mix earnings four months 2019 results acquisition smith schlumberger tax charges recorded charges credits 2011 2010.
 note 3 financial statements.


claims against us indemnification obligations on results future reporting period on loss income reported.
 note 23 commitments guarantees visa indemnification obligations indemnification current former officers directors employees agents of pnc companies acquired national city.
 equity funding unfunded commitments at december 31 2011 private equity investments $ 247 million other investments $ 3 million.
 issue risk participations in support obligations remarketing programs 2019.
 outstanding standby letters credit internal credit ratings billions december.
.
 internal credit ratings
 94% ( 94 % ) 90% ( 90 % )
 6% ( 6 % ) 10% ( 10 %
 risk loss low.
 higher risk default.
 if customer fails meet financial obligation remarketing program obligated to make payment.
standby letters credit risk participations 2019 december 31  2011 terms less 1 to 7 years.
 maximum future payments $ 14. 4 billion at december 31  2011 $ 7. 4 billion support remarketing programs.
 assets $ 2. 0 billion secured letters.
 recourse provisions $ 3. 6 billion.
 remaining secured by collateral guarantees.
 liability $ 247 million  2011.
 standby bond purchase agreements liquidity facilities support municipal bond obligations.
 commitments $ 543 million.
 liquidity facilities support pools receivables commercial paper conduits.
 total commitments $ 199 million.
 party to acquisition divestiture agreements purchased sold assets.
 cover businesses loan portfolios branch banks partial interests companies assets.
 agreements include indemnification provisions against risks.
pnc seller indemnification provisions provide buyer protection quality assets extent liabilities assumed.
 quantify total potential exposure.
 provide indemnification securities offering transactions.
 issuer provide indemnification underwriters placement agents analogous purchasers.
 underwriter placement agent limited indemnification issuer actions offering other underwriters indemnification sharing risk.
 quantify total potential exposure.
 enter agreements provisions indemnifying pnc financial services group.
 2013 form 10-k 197


2012 company granted employees 139 thousand rsus performance measures market thresholds.
 awards vested january 2015.
 performance goals market thresholds rsus surpassed 175% awards distributed awards forfeited.
 2015 additional 93 thousand rsus granted performance thresholds exceeded.
 2015 2014 2013 granted rsus without performance conditions employees 2007 plan.
 without vest three year.
 distribution contingent performance measures market thresholds.
 2014 2013 granted rsus non-employee directors 2007 plan.
 vested date grant distribution 30 days 15 months after grant separation service.
 total grant date fair value recorded operation maintenance expense.
 vest one to three years.
 service-only conditions internal performance measures valued market value closing price company common stock date grant.
granted market valued monte carlo model.
 volatility historical stock.
 term years risk-free interest rate three-year.
 treasury rate.
 weighted-average assumptions monte carlo simulation grant date values december 31.
 volatility 14. 93%. 93 % 17. 78%. 19. 37%. 37 %
 risk-free interest rate. 07% % 75%. 75 %. 40%. 40 %
 life 3.
 grant fair value per share $ 62. $
 value restricted stock awards market conditions amortized expense-vesting.
 amortized operations expense.
 unrecognized compensation cost nonvested restricted stock units recognized. 4 years.
 grant date fair value $ 12 11 $ 9 years 2014 2013.


.
 first impairment test showed no indication units except december 31 2008 second test except december 31 2008.
 indication impairment in north america latin america emea units second testing performed on.
 recorded $ 9. 6 billion pretax $ 8. 7 billion after tax goodwill impairment charge fourth quarter 2008 goodwill.
 primary cause deterioration financial markets global economic outlook.
 weakened prospects financial services industry.
 company market capitalization from $ 90 billion july 1 2008 74 to $ 36 billion december 31 2008.
 fair-value adjustments loans debt intangibles.
 not consolidated balance sheet.
 table shows units with goodwill balances excess fair as december 31  2008.
reporting unit $ millions % allocated book value goodwill post-impairment.
 book value
 north america cards 139% 6765
 international cards 218% % 4066
 asia consumer banking 293% % 3106
 securities banking 109% % 9774
 global transaction services 994% %
 north america 386% % 1259
 international 171% 171 %
 no impairment securities banking test october 31 december 31 goodwill sensitive deterioration economic conditions.
 earnings transaction multiples selected guideline companies acquisitions.
 performance financial condition return income growth.
 discount rate risk uncertainty selected 2013 terminal year.
 value return historical core-business profitability losses 2008.
 recovery.
 government stimulus actions marketplace confidence improved risk-management.
company-specific actions realignment growth returning securities banking business to historical levels.
 deterioration assumptions discount rate growth rate net income projections affect impairment evaluation results.
 future economic assumptions cash flows experience future impairment charges goodwill securities banking.
 charges affect 1 regulatory capital ratios tangible capital liquidity position.


maturity october 2016.
 maturity revolving credit extended october 2018 increased $ 900 million $ 600 million.
 amended credit agreement term c-2 c-3 loan $ 900 million revolving credit facility.
 net deferred financing costs $ millions.
 december 31 2011 28
 financing costs deferred
 accelerated amortization refinancing
 31 2012
 costs deferred
 december 31 2013
 costs deferred
 amortization refinancing
 december 31 2014
 4. 625%.
 $ 400 million prepayment term c loan facility.
 september 2013 amendment reduce interest rates term c-2 loan facility 2016.
 $ 6 million 3. 250%. $ 4 million september 2014 amendment credit.
 $ 4 million 6. 625%625 % notes redemption $ 1 million c-2 loan facility conversion.
 december 31 2014 margin borrowings 2. 0%. above euro margin c-3 2. 25%. above libor dollars. euribor.
 december 31 2014 margin revolving credit 1. 5%. above libor.
 margin increase decrease corporate credit ratings celanese.
 borrowings amortization 1% 1 % initial principal amount per annum payable quarterly.
 pays quarterly commitment fees unused portion 0. 25%. per annum.
 guaranteed celanese subsidiaries secured lien assets exceptions real property foreign subsidiaries guarantee collateral agreement borrowing funds letters credit first lien senior secured leverage ratio last day fiscal quarter exceed threshold.
 below threshold amounts outstanding credit.


deferred compensation plan company executives board adopted illumina.
 plan effective january 1  2008.
 eligible participants contribute 80% base salary 100% other forms compensation including bonus commission director fees.
 company credit participants contributions earnings performance independent investment funds.
 make employer contributions accounts.
 vesting schedules discretion compensation committee.
 contributions 100% vested disability death retirement change control.
 benefits unsecured.
 participants eligible receive payment vested benefit end deferral period after termination employment.
 december 28 2008 no employer contributions plan.
 established rabbi trust directors executives.
.
.
 included assets trust in consolidated balance sheet.
 december 28 2008 assets liabilities $ 1. 3 million.
 assets classified as other assets accrued liabilities balance sheet.
values assets trust accrue company.
.
 segment information geographic data customers quarter 2008 reorganized structure life sciences business unit products services research market beadarray beadxpress sequencing lines.
 created diagnostics business unit molecular diagnostics.
 2008 limited activity diagnostics results reported chief executive.
.
 operated one reportable segment.
 revenue regions.
 united states $ 280064 $ 207692 103043
 kingdom 67973 34196 22840
 european countries 127397 75360
 asia-pacific 72740 35155
 other markets 25051 14396
 total $ 573225 $ 366799  $ 184586
 net revenues attributable geographic areas region destination.
.
 consolidated financial statements 2014


visa.
 financial statements 2012.
 common stock delivered restrictions lapsed terminated.
 awards granted 10 years.
 share-based compensation cost graded-vesting.
 forfeiture historical forfeiture data.
 2012 2011 2010 share compensation cost $ 147 million 154 million $ 135 million.
 share compensation cost 2012 2011 2010.
 options options 10 years years.
 value stock option estimated black option pricing model weighted-average assumptions 2012.
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. 9 % 8 7
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. 2 % 4
. 9 % 4 % 4 %
. 9 8 % 7
.$ 27. 50 $ 29. 46
. 6 million replacement awards cybersource employees acquisition 2010.
 awards-average exercise price $ 47. 34 per share less three years grant date.
 peer companies comparable.
.
 treasury bond rate term.
 company historical volatility.
 peer companies.
 volatilities 31% to 35% ( 35 % ) 2012.
 2019s annual dividend rate grant.